Had BES collapsed in July 2015, new EU rules would have made it easy to force senior lenders to stump up. As it is, Lisbon just arranged another taxpayer-backed bailout, says Breakingviews.
The fresh bailout just floats his stuff breaking views George -- is taking a look. For his latest -- I'm. Badly timed. And timid you -- like. Louis yet I mean about the -- element is that it's. -- Europe. WB news space -- aliens rules which alive which utilize those to capitalize this kind of -- two -- that much more easily than it. In the final analysis analysis has -- been the key difference then between war crimes happened. And what could have happened if they -- BC these needs European patent -- and race teams. Ideas would -- senior creditors could have been stalemate. If this to happen a year from now that is hopefully what would've happened. As the days. That the rules haven't quite just been in influence in the -- he's -- and therefore they can all keep in his business. What they did with the Catholic okay so so let's just say this house and -- junior bondholders and shareholders. Will be. Liable for the oil that native Adam thanks best today have been pretty close into that being put into a bad back a little bit or -- is. Most questionable assets which exceed its exposure to parent and also trying to. Today only about bank and the needles this and then we'll have to be born boy -- shareholders and the gene sequences which means they could get one tactical team will want to happen. All the good stuff the good loans and the deposits. And in -- in the senior creditors get in the good. But the point is -- that it all with a capital institute for. The they patsy foreign money from the state from the Portuguese state. That back -- waiting would have been just tease them. Who's the senior criticisms. And and then he would -- money without glory from the taxpayers to an annual and the state says they'll get that money back when this could practice so yes so you don't believe that. Well they will but I mean it'll certainly be Italy it's so it would be bank and -- though faith and -- it just creates uncertainty today and when they gonna do it and data how much money giving it. Save them. But the big -- that's a big issue which could have been sold. If they just -- another line in the front right and and and they didn't want because political key reason why they didn't is simply because. -- I mean do we did exactly what we did exactly wide but it's one reason could be that. They would just a bit. It makes it just pulling the left of the little thing. We haven't formally calls that's all I could think that's a bit and seat him because they could just on April weekend if they had. -- I think the real world thing here is that it. And -- the banks and -- -- still -- kind of worried about it and the impact in the kind of on and on an Old Bailey -- senior criticism that's been the same thing for the lost -- -- we've seen. Repeatedly seen senior credit to get protected because -- governments that he worried about what would happen to avoid that -- the market in their country. -- in Europe as a whole. If -- do that and it's real shame because. -- it would it three months away from any regime that would Cecil who does that say about what we think is going to be extra bats on me detonated. Get your unimpressed. It expects up to about whether the sincerest thanks so to speak to a table breaking views that the US has atrocities and seventeen -- -- bsc. I'm axis of sorts.