Banks, markets have mixed reaction to EU bail-in deal

06/28/2013 | Reuters · Financial Times (tiered subscription model)

The EU's long-awaited agreement on bank bail-in, which protects taxpayers while putting the burden of a rescue on shareholders, bondholders and wealthy depositors, has widely been welcomed by banks. However, shares of financial institutions in weaker nations have dropped amid concern about their ability to attract funding. Industry experts also want to ensure details are clear. "It is important that any flexibility in the application of the bail-in tool is clearly framed to minimise uncertainty, unpredictability and 'level playing field' issues," said Oliver Moulin, a director at AFME.

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Reuters · Financial Times (tiered subscription model)

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