ECB's Asmussen Urges Europe to Accelerate 'Bail-In' Plans!
- Your money is no longer safe in all these western banks! Bail-in is simply legalized theft!
– - ECB’s Asmussen urges Europe to accelerate ‘bail-in’ plans!
Writing by Paul Carrel, editing by Mike Peacock, http://uk.reuters.com/home
(Reuters) – Europe should accelerate plans to force investors and wealthy savers to share the costs of future bank failures and define clear rules for these ‘bail-in’ arrangements, ECB policymaker Joerg Asmussen said on Tuesday.
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The EU agreed last month on a bail-in plan to target shareholders, bondholders and rich depositors, eager to avoid a repeat of the financial crisis, when its member states spent the equivalent of a third of the bloc’s economic output on saving its lenders.
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Asmussen said that under existing arrangements, the bail-in tool could enter into force as late as January 1, 2019.
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“This is too late,” he said in a speech to the Atlantic Council at Reuters’ London office. “It means that we have a time gap where the harmonised resolution framework has entered into force … but one of the key resolution tools is not available to the resolution authorities.”
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This could impact the timely and orderly winding up of a bank, he said, adding: “The European Parliament proposes bail-in to enter into force in 2016. That’s an improvement, but I think January 2015 would be better. Markets will in any case anticipate bail-in earlier.”
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Asmussen, a member of the six-member Executive Board that forms the nucleus of the ECB’s policymaking Governing Council, said bail-in arrangements should also be more rules based.
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