European finance ministers:how to treat big depositors in future Cyprus-style bank 'bail-ins'
This article discusses the fact that European finance ministers are tryig to figure out
which depositors shall remain immune from future bank bail ins.
excerpts from the article:
Ministers debated an existing draft law for the first time since what appeared to be an ad hoc approach in Nicosia turned into the beginnings of a template for possible future debt bailouts
with struggling Slovenia seen as the next most likely candidate.
http://www.channelnewsasia.com/news/business/international/eu-toils-on-preferential-status-for-big-/675276.html
What is key here is not the discussion over WHICH bank customers get the "haircuts"
but that there is serious discussion now in Europe on HOW to grab money from banks, instead of taxpayers in general.
Just as the Dutch Finance Minister said during the Cyprus deal, they are looking at a new
template.
And obviously not quite getting the possible consequences of using banks as a source of capital to pay a country's debt.
thoughts?