June 12, 2012
The idea that taxpayers should be expected to bail out Europe’s ailing banking system is “ridiculous” and does not work, one expert told CNBC’s “Squawk Box Europe” Tuesday.
Spain asked for a bailout for its banks – the country has stressed it is a loan – at the weekend. Cyprus has also hinted it will likely need a bailout, possibly as soon as this month, as its banks are highly exposed to Greece, which faces crucial elections this weekend, and it is running out of options for financing them. Analysts have said this could be tricky PR-wise as the country takes the rotating European Union presidency in July.
“The idea that taxpayers should backstop failed private risk after it has failed in banks is ridiculous. The policy up until now that has been pursued is not working,” Declan Ganley, Chairman and CEO at Rivada Networks said.
He added that this had caused huge problems for bailed-out countries where the burden on the taxpayer was unbearable in many instances.
This article was posted: Tuesday, June 12, 2012 at 3:18 am