Bondholders will have to be down 8(%)-0 before the German taxpayer steps in.

Germany plans to force creditors into propping up struggling banks beginning in 2015, one year earlier than required under European-wide plans that set rules for failing financial institutions, according to a senior German finance ministry official.

From next year, struggling bank creditors, in addition to shareholders, will have to help financial institutions, covering up to 8% of liabilities, before the banks can tap Germany’s financial markets stabilization fund SoFFin, said the official, who declined to be identified….

Germany has been a strong proponent of forcing bank shareholders and creditors rather than taxpayers to shoulder the cost of winding down or rescuing banks.

Germany to Force Creditors to Prop Up Struggling Banks in 2015 [WSJ]

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Comments (4)

  1. Posted by Guest | July 9, 2014 at 12:03 PM

    That's why we're spying on them.

  2. Posted by weisswurst heinz | July 9, 2014 at 12:14 PM

    Is that Brazilian player trying to kick the celebrating German?

  3. Posted by Lesbianus | July 9, 2014 at 12:19 PM

    11 Germans 1 Cup

  4. Posted by Le Vichy | July 9, 2014 at 3:27 PM

    Too soon!