BRUSSELS, June 7 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
(Reporting by Foo Yun Chee, editing by John O'Donnell)