By Wall Street Journal
BERLIN–Europe is currently moving from a bail-out environment to a bail-in environment when it comes to rescuing failing banks, a member of the European Central Bank’s executive board said Wednesday.
In designing a common bank resolution mechanism for Europe, European Central Bank policymaker Benoit Coeure said making shareholders and investors, rather than taxpayers, pay for the mistakes made by banks will lead to a fairer and sounder environment.
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