Tier 1 capital: Difference between revisions

Again, ''no''. Over the life of their investment, they did much better than common equity holders. Look at the chart in the panel. They may ''regret'' being written down, but that is exactly the option they sold when they bought the Notes.  

It boils down to this: the alternative tier 1 capital layer is there to protect depositors and ensure the stability of the wider financial system, by helping banks to remain a going concern even in times of great stress. That the bank’s ordinary shareholders happen to share that interest is beside the point. AT1s are meant to reward, and did reward, long-term investors.