Bundesbank chief calls for reform of insolvency law

Insolvency law needs to be reformed to enable banks to be stabilised without bailing out their owners and creditors, according to the president of the German central bank.

Speaking at an event in Dublin Axel Weber, who is tipped to take over as president of the European Central Bank next year, said new regulations need to enable restructuring rather than government bailouts in the event banks run into trouble.