What bank investors need from authorities is clarity. A concerted, pan-European drive to inject capital might provide it. As US fund manager John Hussman has suggested, that injection could be achieved via a “super-bond”, countable as capital and subordinate to customer deposits, but ranking ahead of both shareholders and even senior bondholders in the event of bankruptcy. That super-bond would pay a high rate of interest, giving banks an incentive to switch to cheaper funding. But interest payment could be deferred until the bank hit a minimum level of profitability.

From Lex in today's FT. Read the proposal in full here.