Posted on 04/14/2016 4:12:46 PM PDT by Lorianne
Entering into 2016, all members of the European Union (EU) were required by law to have bail-in legislation on their books in preparation for the next potential crisis that in previous times would have resulted in a taxpayer funded bailout. This was accomplished both by individual countries, and at the central bank level, and is regulated under the auspices of the European recovery and resolution framework for banks.
And on April 10, it appears that these new rules have come not a moment too soon as Austria is to become the first European state to implement a bail-in as it induces the new policy on the failed Hypo Alpe Adria (bank), which is known today as the Heta Asset Resolution AG when it was nationalized by the Austrian government six years ago.
Initially, a haircut of 54% will be implemented against senior creditors that could take upwards of six years to finalize the process and payouts to the debt holders.
(Excerpt) Read more at examiner.com ...
Off to the races.
I guess the Austrians have never heard of Austrian economics.
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