European supervisors say shares should be wiped out before bonds

Kitco Media
By Reuters
Published:
Updated:
Reuters
FRANKFURT, March 20 (Reuters) - European supervisors said on Monday bank shareholders should be wiped out when a bank runs into trouble before owners of Additional Tier 1 bonds suffer losses. The European Central Bank, Single Resolution Board and European Banking Authority were reacting to a decisions by Swiss authorities to write off Credit Suisse's Additional Tier 1 bonds with a notional value of $17 billion.


"This approach has been consistently applied in past cases and will continue to guide the actions of the SRB and ECB banking supervision in crisis interventions," they said in a statement. (Reporting by Francesco Canepa, Editing by Louise Heavens)

004906975651247; Reuters Messaging: francesco.canepa.thomsonreuters.com@reuters.net))
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