- German fin min quoted in Wirtshaftswoche magazine this morning
Asked whether the charge of depositors in Cyprus was a unique case he said yes but:
“The involvement of owners, bondholders and uninsured depositors has to be the norm if a financial institution runs into trouble. Otherwise we will never get a grip on the moral hazard problem whereby banks which do risky business make big profits but then burden the general public with their losses when they fail.That cannot be allowed”
A reminder that the Cyprus fall-out will have significant knock-on effect in banking regulation and beyond
