27 October 2009
Pension annuity providers fear an annuity disaster if European
regulators force Britain's state-backed banks to cancel interest
payments on bonds. With European regulators demanding that
bondholders not be paid before taxpayers get their money back from
the state-backed banks, investors are afraid that this will result
in a drop in income for pension annuities because bank bonds were
seen as particularly useful when matching liabilities with
annuities.
