LONDON, Oct 23 (Reuters) - Managers of a failed bank wouldbe replaced immediately and creditors told they will sufferlosses, the Bank of England said on Thursday in its blueprintfor avoiding taxpayer bailouts in future financial crises.
The Bank set out for the first time the steps it would takeover an initial 48-hour period to deal with a collapsing bank.
The lender's management would be fired on the spot and thebank's liabilities used to pay off losses and recapitalise in abid to restore confidence and avoid a run.
The new regime comes into effect in January 2015. If it hadbeen in place in 2008 when Royal Bank of Scotland failed, taxpayers would have not had to funnel 45 billion pounds($72 billion) into the bank.
"This is a significant milestone in our resolution regime,"said Andrew Gracie, executive director of resolution at the BoE.(1 US dollar = 0.6250 British pound) (Reporting by Huw Jones, editing by Andy Bruce)