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Old 06.10.2016, 22:25
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marton marton is offline
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Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

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Quite relevant, actually. If you look at Deutsche Bank, Merkel is unable to bail it out because of Germany's EU membership. Same with Monte Dei Pasche. EU State Aid laws prevents governments from protecting their largest economic engines. Outside the EU, the UK government can service its industries. So it would untie the country's hands in dealing with its problems. This is an EU law that prevents such assistance.
There is no EU law to stop bank bail outs!
There is an EU law that says the bank investors have to pay first to minimise the amount of tax payers money used for a bail out.

In detail
The key new rule is that no bank can be bailed out with public money until creditors accounting for at least 8 percent of the lender’s liabilities have stumped up.
So-called bail-ins typically mean wiping out creditors’ investments, slashing their value or converting them into shares in the bank.
Uninsured depositors could get caught along with professional investors.

I agree with this; why should tax payers be punished first?

I hope that Brexit does not mean the UK will start throwing tax payers money into black banking holes.
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