Could a nice cup of Cocos be the sweet fix that regulators desperately need to solve the “Too Big to Fail” problem? That is a question being furtively whispered right now, on both sides of the Atlantic

Last week, the UK’s Lloyds Banking Group startled investors by offering to exchange up to £7bn of its outstanding subordinated bonds for so-called “contingent convertible” (CoCo) bonds, as part of a wider fund raising.