Friday, March 08, 2013

Offer not applicable in Ireland

European Central Bank President Mario Draghi at the monthly news conference --

And the ECB has, on other occasions (besides Dutch bank SNS Reaal), maintained that the bailing-in of creditors is an effective way to support capital positions. So, for the ECB, a bail-in is a good thing, by and large, provided it does not affect financial stability. In all these issues, you have to find an equilibrium between, on the one hand, debt sustainability and not using taxpayers’ money (i.e. bailing people in) and, on the other hand, financial stability.

In 2010, the ECB did not support allowing Ireland to bail in bondholders in busted banks. He did leave himself the out of "financial stability."