BANKING CRISIS

Banking crisis


Asmussen clarifies EU Parliament: savers must bleed for bank rescue

German Economic News | 08:05:13, 18:08 | 133 comments

The EU will use the savers to save the banks - and indeed Europe. From the far gediehenen plans Troika taught ECB member Jörg Asmussen on Wednesday that astonished European Parliament.

Cooperate Rehn (EU) and Asmussen (ECB) on plans to participate in the rescue of depositors of banks (Photo: Consilium).

The part of the ECB, the EU and the national central banks is to hear clearly: The depositors must save the European banks. The Governing Board also made member Jörg Asmussen on Wednesday the EU Parliament clearly. Access to the savings accounts will come.

Several lessons we have learned from the situation in Cyprus, Asmussen said on Wednesday at the European Parliament . "We urgently need a European framework for the operation of financial institutions," This framework should then also a number of well-known rules related to the depositor at the Refinancing of banks include. Asmussen speaks in this context of general rules for bail-in, the possible confiscation of assets and involvement of preferred creditors.

The new legal framework "and should make sure that the inclusion of the deposit insurance is limited protected deposits with the solution (processing) to cover the preferential creditors depositors at the top of the hierarchy," said Asmussen. This will reduce the risks to financial stability, since it is so give legal certainty and predictability in the management of banks.

The compulsory levy in the case of Cyprus holds the ECB Executive Board member therefore continue to be justified. Finally, "are not worse off through the compulsory levy the affected creditors of the banks, as if the banks would have gone bankrupt."

A first draft of the attraction of bank customers, speaks of the Asmussen, already is. Present proposal of the EU Commission, savers are with a fortune of 100,000 euros while involved only at the end to rescue the bank. But an investment is definitely provided ( here ).

Merkel, the ECB and the EU Commission in the form of Dijsselbloem and Rehn in preparation for access to savings accounts, a clear and consistent line.

The German savers can make quite slowly familiar with the fact that they will in future save the banks two-fold: The rescue for bailouts from taxpayers are fed with. Union Bank and the rescue plan contained therein for the banks adhere to the citizens as Bank customers Creditors for the failure of those banks in which they have an account ( here ).