Debt holders should not be able to avoid the force of market discipline, leaving taxpayers to take the full hit when a bank fails, Paul Tucker, a deputy governor of the Bank of England, said in Brussels on Friday.

Following remarks to the European Commission's conference on crisis management, Tucker told the audience that the recent crisis highlighted a significant problem where bondholders took no haircut on debt they owned but were instead reimbursed in full. "It is really important that the