Public interest loophole casts doubt on EU banking union

Bondholders face fresh uncertainty about European use of bail-in, critics warn

A decision that it was not in the public interest for the European Single Resolution Mechanism to be involved in tackling two failed Italian banks has created fresh uncertainty for bond investors, critics warn.

“How this public interest test now works is open to question. If it is highly discretionary, as it might appear now to be, then it doesn’t give bondholders much predictability as to what their position is going to be. It is like rolling the dice or flipping a coin: either you are going t

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: