ECB's Liikanen says bail-ins should be the rule

(Source: Reuters)

The European Central Bank's Erkki Liikanen has said that bail-ins of banks, not bailouts, should be the rule.

Many remain concerned that banks are implicitly backed by government money, and as bank profits are delivered to private hands, public money may plug private losses. Bail-ins would see private backers suffer losses when banks fail and may make depositors more cautious and critical when deciding where to put their money.