Mar 22: Greg Peters on bank bondholders

Part 3: Greg Peters, head of global fixed income and economics research at Morgan Stanley, says banks' bondholders are concerned that they may not be protected from losses in the event of further government takeovers of banks. "You have to protect that piece of the capital structure. But with the change in climate, the markets are concerned over that actually happening. So what I think would do a world of good for the markets is be quite clear on what would happen to bondholders to the extent that you could. I think that's absolutely critical." Mr Peters says investors are confused about the government's plans for rescuing the financial system, including about the effect of "stress tests."