UniCredit Says Global Rules Needed to Bail-In Big Deposits

"Uninsured deposits could be used in future bank failures, provided global rulemakers agree on a common approach, according to Federico Ghizzoni, CEO of Italy’s biggest lender, UniCredit SpA. The European Union has to introduce identical rules in all of its member states and ideally those rules would be coordinated globally, he said. Including deposits “is acceptable if it becomes a European solution,” said Ghizzoni, 57. “What we cannot accept is differentiation country by country inside the same area. I would strongly suggest to make this decision not only within Europe but within the Basel Committee, where all countries are represented. Otherwise we would open the market for arbitrage.” Ghizzoni said deposits should only be included when bonds aren’t sufficient, and those below the guaranteed level of 100,000 euros should be off limits. While he would prefer not to touch them at all, including deposits in a global plan was an acceptable solution."

http://www.bloomberg.com/news/2013-04-04/unicredit-s-ghizzoni-favors-using-big-deposits-in-bank-failures.html