EU bank resolution directive can be 'dangerous' - ECB Dewatripont
FRANKFURT (Reuters) - A European Union directive seeking to shield taxpayers from having to bail out failing banks can be "dangerous" as it leaves short-term depositors exposed to potential losses, a member of the European Central Bank's supervisory board said on Wednesday.
The EU directive, which is being implemented by all member states, says that shareholders, creditors and, eventually, depositors should be made to take losses before public money can be used to save a failing bank.
"Frankly this could be dangerous," Mathias Dewatripont, a member of the ECB's supervisory board told a conference in Frankfurt on Wednesday.
He added the directive left short-term deposits, which are often used by savers, exposed to losses.
(Reporting By Francesco Canepa)
