Italy backs 8 percent minimum bail-in for ailing banks
Reuters.com
Tue Dec 10, 2013
(Reuters) – Italy’s Economy Minister Fabrizio Saccomanni said on Tuesday that public intervention on troubled banks should come after inflicting losses on bondholders through a minimum bail-in of 8 percent of total bank liabilities.
Yet, Saccomanni the introduction of bail-in clauses may spread risks across the euro zone banking sector.
“In case of a systemic crisis, public intervention would be preferable to the risk of contagion generated by an extended use of bail-in (clauses),” Saccomanni said speaking at a meeting of European Union finance ministers in Brussels.
