This is a very interesting development if true. Apparently Mario Draghi advocated the move at last Monday's EU finance minsters' summit.
Can't wait to hear what Noonan has to say about this report that originated with the WSJ.
http://uk.finance.yahoo.com/news/ecb...092509536.htmlLONDON (ShareCast) - Even though the European Central Bank (ECB) opposed forcing losses on senior bondholders in the 2010 bailout of Irish banks, its President, Mario Draghi, has changed the ECB's stance and now looks to have these investors share the burden of the Spanish bank rescue. According to The Wall Street Journal (WSJ), Draghi apparently clashed with Eurozone finance ministers opposed to the measure at the July 9th meeting. The opposition argues that taking this step would harm access to credit markets. Currently the agreement with Madrid only forces losses on bank shareholders and junior bondholders. Apparently Draghi is now arguing for senior creditors to be held accountable when a bank is pushed into liquidation. In other words, according to WSJ, they would remain safe if the larger banks merely underwent restructuring.