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    EU authorities won't ever write off bank bonds before shares, ECB says

    Synopsis

    He was reacting to UBS's rescue of Credit Suisse on Sunday, which has seen holders of Additional Tier 1 bonds lose everything while shareholders received $3 billion worth of UBS shares.

    EU authorities won't ever write off bank bonds before shares, ECB saysAgencies
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    European Union authorities will never write off bank bonds before shares are wiped out, whether a bank is being wound down or there are "private solutions" to rescue it, the European Central Bank's top supervisor Andrea Enria said on Tuesday.

    He was reacting to UBS's rescue of Credit Suisse on Sunday, which has seen holders of Additional Tier 1 bonds lose everything while shareholders received $3 billion worth of UBS shares.

    "This type of approach would not be feasible under the European framework and this would be the case of resolution ... but we as authorities would also apply the same approach in orchestrated private solutions," Enria said.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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