EU bank resolution directive can be "dangerous"

November 4, 2015 9:25 AM

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FRANKFURT Nov 4 A European Union directive seeking to shield taxpayers from having to bail out failing banks can be "dangerous" as it leaves short-term depositors exposed to potential losses, a member of the European Central Bank's supervisory board said on Wednesday.

The EU directive, which is being implemented by all member states, says that shareholders, creditors and, eventually, depositors should be made to take losses before public money can be used to save a failing bank.

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