Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced.

Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

 

The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.

The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.

"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said.

"If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders."

Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

telegraph.co.uk

Comment

You need to be a member of 12160 to add comments!

Join 12160

Please remember this website is supported by your donations...

12160 NEWS new management/admin info

Putin to Western elites: Play-time is over / The builders of the New World Order have failed

Outrage - Israeli Cartoonist Compares Netanyahu to 9/11 Hijackers - Plane Piloted By NUTTY in to Tower

Why We’re Poorer: Inflation And Deflation Are Now Globalized

Saudi Arabia's "Oil-Weapon" Hits Europe - Iran

China's shadow banking sector growing rapidly, third largest in world: FSB

VIDEO: Inside The Shanghai International Gold Exchange Vaults

German Bank Hits Savers with Negative Interest Rate

Elderly couple fined $80K, raided by Marathon County SWAT because of pallets in their yard

LEAKED VIDEO: Cop Pulls Out His Penis and Begins Masturbating on High School Campus

Maryland Teen Tased By Police 5 Times While In Hospital Dies of ‘Natural Causes’

GOV CLEARS GOV OF WRONG DOING - Ferguson shooting probe of possible grand jury leak wasn't exactly in-depth

Massive Non-Citizen Voting Uncovered in Maryland

50,000 Missing Georgia Voter-Registration Applications? Nothing to See Here

90 Pounds of Cocaine Found on Cargo Ship Owned by Senate Majority Leader Mitch McConnell’s Father-in-Law

Milton Hall being shot at 46 times by police in the US

Report an Issue

Forum

Ten Most Wanted

Started by mystery in Current News/Events. Last reply by Darrell Rowlands 14 minutes ago. 3 Replies

© 2014   Created by truth.

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2014 - all rights reserved. unless otherwise noted
var _gaq = _gaq || []; _gaq.push(['_setAccount', 'UA-48719234-1']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })();