ECB Shouldn’t Meddle in EU Bank Aid Rules, Lawmakers Say

European Union lawmakers said the European Central Bank shouldn’t try to influence how losses are imposed on creditors at banks that must resort to public funds in the aftermath of a health check this year.

ECB Vice President Vitor Constancio said on May 12 that “it may be adequate” to invoke exceptions to EU state-aid rules for some banks shown to have capital shortfalls in the central bank’s Comprehensive Assessment. That would allow public money to be injected without enforced losses on shareholders and junior bondholders.