EU regulator order 11 sovereign countries to adopt bank bail-in legislation
By Peter Walden, News Editor
03 Jun 2015
The European Commission has ordered Italy, France and nine other European members to pass new bail-in legislation within the next two months or face legal action via the European Court of Justice. The legislation was drafted in response to the 2008 economic crash.
No doubt the legislation will be sold as a solution to halt future bank failures. However in reality depositor’s money will bail-in to save the bank. Incredibly in the U.S. holders of derivatives rank higher in the event of a bank insolvency than ordinary depositors.
Sweden, Poland, Romania, Netherlands, Malta, Lithuania, Czech Republic and Bulgaria are yet to pass the legislation. Worryingly bail-in legislation has already been passed in the UK, U.S., Canada and New Zealand.