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European Parliament considers bailing-in large depositors

FXstreet.com (Barcelona) - The euro dropped in the European afternoon on information from Reuters that the European Parliament would be inclined to bail-in big savers, who hold deposits of over 100,000 euros at distressed banks.

MEP Gunnar Hokmark, who is taking part in creating a new law aimed at dealing with such banks told Reuters that: "Deposits below 100,000 euros are protected ... deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in."

Eurogroup chief Jeroen Dijsselbloem’s comments on Monday, suggesting that the bailout deal struck between Cyprus and the Troika might be a model for rescue programs for other EU countries in the future, caused the European stock markets to drop sharply in late trading.

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