Changing the rules would be recipe for further chaos
A VERY bad situation just got worse. The torching of the Cypriot banks, large depositors and senior cred- itors was a response to the disastrous attempt to make small depositors, insured under EU rules, pay part of the cost.
That was dramatic enough. Then Dutch finance minister Jeroen Dijsselbloem, who chairs the euro finance ministers' group, said the Cyprus deal had solved the "vicious circle" whereby losses at banks become losses for taxpayers and add to government debt.
He told the 'Financial Times' and Reuters that in future, those who lend money to banks, as well as those who invest in their shares, will take the hit if the bank goes bust.