Gunnar Hökmark’s draft report on bank crisis management now published

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Attached you can find Gunnar Hokmarks draft report on the recovery and resolution directive (”bank crisis management”). His key message is that banks, like all other companies, must also face the risk of bankruptcy if their owners or managers make bad decisions, thereby making owners the first bearers of losses.

This has not been the case to date and the absence of this fundamental market economy rule has created flawed incentives which now must be dealt with.


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