Under the new European Union law in the works, large bank depositors can take a hit should the bank fail. This was advised by EU economic affairs chief Olli Rehn.
He did note that the Cyprus bailout was unique. In an interview on Finland's YLE, he said, "Cyprus was a special case but the upcoming directive assumes that investor and depositor liability will be carried out in case of a bank restructuring or a wind down."
He added, "But there is a very clear hierarchy, at first the shareholders then possibly the unprotected investments and deposits. However the limit of Eur100,000 is sacred, deposits smaller than that are always safe."
Currently, the EU is drafting a regulation on bank safety incorporating the issue of investor liability in member states' legislation.
Rehn also stated that the European Central Bank should launch a fresh program to help boost the Euro Zone economy currently mired in the doldrums.
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