Bailing in the debt of a failed bank is a contentious process that needs to pass muster if challenged in an insolvency court. Legal certainty on the treatment of debt eligible for bail-in is therefore paramount.

But nothing about Brexit is certain. That includes the question of whether English courts will continue to recognise European bail-in decisions. As a result, European banks have been left with a headache as they consider how to handle the preponderance of English-law bonds in their bail