Aiginger: „Feeding Banks Makes No Sense“

More+Comment ♦ Published: July 24, 2012; 19:29 ♦ (Vindobona)

The director of WIFO (Austrian Institute of Economic Research) thinks that Spanish banks must be able to become insolvent.

Aiginger: „Feeding Banks Makes No Sense“ / Picture: © WIFO Wirtschaftsforschungsinstitut

According to Karl Aiginger, deposits must be protected, but not the bank´s owners. „Feeding all banks is unreasonable.“ he says. Like in the U.S., banks must not be „too big to fail.“ By contrast, not every single banks should not be rescued with taxpayer´s funds.

Regarding Greece, Aiginger comments that the country would take more time in order to comply with the…