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Monday, July 16, 2012

ECB declines comment on bank bond losses report | Reuters

ECB declines comment on bank bond losses report
| Reuters

The European Central Bank declined to comment on Monday on a report its president advocated imposing losses on holders of senior bonds issued by the most severely damaged Spanish savings banks in what would be a change to the ECB's previous stance.
The Wall Street Journal said ECB President Mario Draghi presented the new stance - which contrasts with a position it took in 2010 that senior bondholders in bailed-out Irish banks should not suffer losses - on Monday last week at a meeting of euro zone finance officials.
Finance ministers rejected the advice out of concern that financial markets would react badly to such a decision, the paper said.

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