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.
via Reuters
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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