Before the announcement this month that the Eurogroup – the euro currency union’s 17 finance ministers in conclave – would look favourably on a Spanish application for up to €100bn to recapitalise its banks, observers asserted that a direct intervention in the country’s banking system would cost.

Bankers argued that the whole drift of current banking regulation militates against a bailout without consequences. Basel III rules seek to impose early losses on riskier hybrid debt at the lower end of the capital structure. Investors have also had, since at least January last year, to get used to the idea that any event requiring a state bailout might also involve losses for senior unsecured bondholders, previously ranked equal with depositors.