ECB’s Asmussen urges Europe to accelerate “bail-in” plans…(Pure Robbery!!!)
Tue Jul 9, 2013
(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.
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.
Asmussen said that under existing arrangements, the bail-in tool could enter into force as late as January 1, 2019.
“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 harmonized resolution framework has entered into force … but one of the key resolution tools is not available to the resolution authorities.”
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.”