Rehn: EU Weighing Direct European Bank Bailouts



From MarketWatch.com | On June 4th, 2012

Olli Rehn

FRANKFURT (MarketWatch) — The European Commission has considered the possibility of directly recapitalizing euro-zone banks via the region’s permanent bailout fund, but such a maneuver would require a treaty change, Olli Rehn, commissioner for monetary and economic affairs, said Monday, according to news reports. “We have been considering this as a serious possibility, of breaking the link between the sovereigns and the banks,” Rehn said at a briefing in Brussels, according to Reuters. Such moves aren’t allowed under the treaty, “but we see that it is important to consider this alternative of direct bank recapitalization as we are now moving on in the discussion on the possible ways and means to create a banking union,” Rehn said, according to the report.

PG
About The Author: RSOP is the co-founder & Executive Editor of Radical Survivalism Webzine, as well as a Family Preparedness Consultant with nearly five years of personal experience in the self-reliance game. RSOP's many preparedness roles within his own group include team mechanic, head of security, electrician, and project designer/engineer.