EU’s bad bank hit by opt-out bid from Danes before even starting
The man running Denmark’s resolution agency, Financial Stability Co., says he sees no reason to join a framework that risks propping up lenders that would otherwise fail.
“It may be a good solution to use for the rest of Europe, but I don’t think it is something that we will use,” Henrik Bjerre-Nielsen, chief executive officer of the Copenhagen-based agency, told Bloomberg.
The European Banking Authority’s chairman has suggested that an EU-wide asset management company would be a way to take over and sell off soured loans that are stopping lenders from providing fresh credit. But the model risks protecting banks that should be allowed to fail, Bjerre-Nielsen said.