Bloomberg News

Regling Says States Could Avoid Bank-Rescue Liability, Welt Says

July 14, 2012

Klaus Regling, who heads the euro area’s bailout funds in the debt crisis, said governments could avoid liability for bank rescues under proposals for a regional bank supervisor, Welt am Sonntag reported, citing an interview.

If the European Central Bank is cleared to act as a bank regulator in the euro area, banks can receive rescue loans without going through governments, meaning states wouldn’t be on the hook for the credits, the Berlin-based newspaper quoted Regling as saying.

That contradicts German Finance Minister Wolfgang Schaeuble, who said on July 9 that he expects governments to guarantee rescue loans even if they go directly to banks, Welt am Sonntag said.

To contact the reporter on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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