Andrew Haldane, the executive director for financial stability at the Bank of England, has said banks should be required to pay staff in contingent capital bonds, or CoCos.

CoCos are supported by many in the regulatory community as a means of protecting the public purse from the cost of future bailouts at the expense of bondholders, who many regard as having been cosseted by the existing regime. The CoCos are converted from debt into equity at times of market stress.

Some, however, have warned