In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘bail-in’

EU aims to lure Greek deposits back to banks with bail-in shield

Posted by seumasach on August 16, 2015


15th August, 2015

Euro-area finance ministers shielded Greek bank depositors from any losses resulting from the restructuring of the nation’s financial system, as part of Friday’s deal on an 86 billion-euro ($96 billion) bailout.

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A single rulebook for the resolution of failing banks will apply in the EU as of 1 January 2015

Posted by seumasach on July 20, 2015

“From now on, it will be the bank’s shareholders and their creditors who will bear the related costs and losses of a failure rather than the taxpayer.

European Commission

31st December, 2014

A single rulebook for the resolution of banks and large investment firms in all EU Member States is set to enter into force as of 1 January 2015. The new rules will harmonise and improve the tools for dealing with bank crises across the EU. They will also ensure shareholders and creditors of the banks pay their share of the costs through a “bail-in” mechanism.

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Germany gives green light for banking union plans

Posted by seumasach on July 11, 2014

To minimize the expense to euro zone taxpayers, European Union policymakers have drawn up a law under which shareholders, creditors and very large depositors will lose money first in the event of a bank failure.

For some reason many commentators fail to distinguish between bail-in, as is the case here,  and bailout, as we saw in US/UK in 2008. The above makes it clear.

11th July, 2014

Germany’s cabinet has approved a package of draft laws which effectively give the go-ahead to Europe’s plans for banking union – the main confidence-building response to the crisis in the financial sector, a government source said yesterday.

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EU forges bank bailout deal to protect taxpayers

Posted by seumasach on June 27, 2013

“Bail-in is now the rule,” Ireland’s finance minister, Michael Noonan, said. The rules put an end to moral hazard by making it clear that banks would suffer before the government might come in to help, if at all, he said. “This is a revolutionary change in the way banks are treated.”


27th June, 2013


The European Union has struck a deal on rules establishing who will pay for future bank bailouts without taxpayers having to foot the bill.

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