EU’s Rehn says big depositors could suffer in future bank bailouts
The European Economic & Monetary Affairs commissioner was speaking on Finnish tv earlier today
- bank depositors over 100k euros could suffer under planned european law on bank failures
“Cyprus was a special case … but the upcoming directive assumes that investor and depositor liability will be carried out in case of a bank restructuring or a wind-down, but there is a very clear hierarchy, at first the shareholders, then possibly the unprotected investments and deposits. However, the limit of 100,000 euros is sacred, deposits smaller than that are always safe.”
Also wants to see the ECB take further action to help the Eurozone out of recession.Rehn said that high financing costs for companies, especially in southern Europe, were a major problem right now.
“Therefore, the ECB’s talk on Thursday about both standard and non-standard measures is very important because the ECB may have a role in making the situation easier,”