EU state-aid official - depositors, senior debt holders safe in bank restructuring
BRUSSELS, June 7
BRUSSELS, June 7 (Reuters) - Depositors and senior debt holders should be shielded from losses in bank restructurings ordered by the European Commission, with shareholders and junior debt holders bearing the burden, a senior Commission official said on Friday.
"If necessary, equity will be fully written down. The same goes for junior debt. But senior debt holders or depositors will not be required to be bailed in," Gert-Jan Koopman, deputy director-general for state aid at the Commission, told Reuters.
The European Commission is updating its rules governing when countries are allowed assist banks in trouble. The rules are set to come into force in August. As state-aid regulator, it has the power to demand conditions, including the restructuring of a bank. (Reporting by Foo Yun Chee, editing by John O'Donnell)
- Qatar adamant it will host 2022 World Cup despite doubts
- Argentina's Fernandez to meet billionaire investor Soros in New York
- New Jersey hiker killed by black bear : police
- Islamic State urges attacks on U.S., French citizens, taunts Obama
- Housing data hits Wall Street; S&P has worst day since August 5 |