ECB Official: ECB Considering Direct Bank Recapitalization

“The European Commission has been considering the possibility of direct bank recapitalization by the euro zone’s ESM bailout fund, though this is not possible under the current treaty, its top economics official said on Monday.

“We have been considering this as a serious possibility, of breaking the link between the sovereigns and the banks,” EU Economic and Monetary Affairs Commissioner Olli Rehn told a news briefing.

“This is not part of the ESM (bailout fund) treaty for the moment, in its present form, but we see that it is important to consider this alternative of direct bank recapitalisation as we are now moving on in the discussion on the possible ways and means to create a banking union,” Rehn said.”

Full article