Olli Rehn Admits New EU Law Will Steal Depositor’s Money

6 Apr (EIRNS)Olli Rehn, the European Economic and Monetary Affairs Commissioner who insisted the Cyprus model of deposit theft was a one-time thing, admitted in an interview in Finland Saturday that this will be the template in the new “directive” being prepared by the EU. “Cyprus was a special case,” he said to Finland’s YLE, “but the upcoming directive assumes that investor and depositor liability will be carried out in case of a bank restructuring or a wind-down.”

First we write off the shareholders, he said, and “then possibly the unprotected investments and deposits. However, the limit of 100,000 euros is sacred, deposits smaller than that are always safe.” Please ignore what we tried to do first in Cyprus, he may have added.

The “directive” refers to the EU directive on bailing in “systemically important” banks.

Rehn also said that the ECB should pump more money into the banks through interest-rate cuts and QE purchases of bonds, which ECB President Mario Draghi called “non-standard measures” in his Thursday press conference. Rehn said: “The ECB’s talk on Thursday about both standard and non-standard measures is very important because the ECB may have a role in making the situation easier.”

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