Economics
Europe Warned Against Free Virus Bailouts for Zombie Banks
- Top official also pushes back against idea to install bad bank
- Single Resolution Board chief Koenig comments in interview
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The top European official in charge of handling failing banks warned against using taxpayer money to rescue lenders that were barely surviving before the coronavirus pandemic.
With the economic fallout from the virus pushing the limits on state aid in Europe, Elke Koenig said handing out targeted aid to banks “shouldn’t mean now we’re back to bailouts.”