Worried? Good.

According to the Guardian:

The Association of British Insurers [...] attacked the way previous corporate failures such as Railtrack have been handled and accuse the government of undermining shareholders' rights.

However, the investors are particularly concerned about the ability of regulators to take control of a bank's deposits under the special resolution regime (SRR), the cornerstone of the consultation paper.

They believe premature intervention in a potentially troubled bank will destroy shareholder rights and prevent the sovereign wealth funds that have played a crucial part in recapitalising US banks from taking similar stakes in UK institutions.

This shows that the government is doing something right with these proposals. The new insolvency regime for banks should destroy shareholder's rights: never again should common stockholders be able to block or threaten to block the rescue of a troubled depositary institution as the hedge funds did with Northern Rock. Bank stock should be fundamentally different from the equity of other companies in that shareholder's control is subordinate to the needs of financial stability. That is part of the price of having a banking license. The ABI needs to get used to the idea that moral hazard isn't abstract: preventing it means having the ability to screw shareholders as the FED did with Bear Stearns.