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First Posted: 3/26/2013 (AP) A top European Central Bank official has rejected the idea that forcing losses on banks' shareholders, bondholders and even large depositors, as applied in Cyprus, should become the new template in dealing with ailing lenders.
Benoit Coeure, who sits on the bank's six-member executive board, on Tuesday bluntly dismissed the idea, which had been voiced the day before by Jeroen Dijsselbloem, the head of the Eurogroup of eurozone finance ministers.
Coeure told France's Europe 1 radio that Dijsselbloem was "wrong" to say that.
He said the solution agreed on for Cyprus cannot be a model for the eurozone because Cyprus's situation is unique. It has an outsized financial sector, including large deposits from foreigners.
<a title="Associated Press" href="http://www.ap.org" class="url org fn">Associated Press</a>

ECB: Cyprus unique situation, no new template