UK building societies are close to finalising details of a new investment instrument that would allow them to comply with tough new EU capital requirements without compromising their mutual status. Talks on the creation of “mutual ordinary deferred shares”, or Mods, are nearing conclusion, say industry executives. Mods, like bonds, would have a capped coupon but be loss-bearing for regulatory purposes.

This entry was posted by Gwen Robinson on Monday, February 15th, 2010 at 5:01 and is featured in The 6am Cut London (15 Feb 2010) . Tagged with mods, mutuals. Edit this entry.