ML-Implode News - Bail-Ins May "Undermine Confidence" In Banks -- Bank Of Italy

The comments are notable as they are the first time that a central bank official in the EU, and indeed, internationally has voiced concerns about the coming bail-in regime and the impacts on ordinary citizens -- small businesses, investors, savers and pensioners... Central bank supervisor, Barbagallo is an interesting character in that he does not appear to be your typical central banker -- most of whom today seem to be career bankers with Goldman Sachs and other Wall Street or City of London bankers. Indeed, his background is as a worker who rose through the ranks to become a senior trade union official.
The ramifications of bail-ins have not been thought through. With central banks taking unprecedented measures ostensibly to fight deflation, it is important to realise that bail-ins would create massive deflation as they would impact hugely on consumer, investor and business confidence.

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Bail-Ins May "Undermine Confidence" In Banks -- Bank Of Italy