ECB backed losses for Spain bank bondholders: WSJ
FRANKFURT (MarketWatch) -- The European Central Bank, in a major reversal, has advocated imposing losses on holders of senior bonds issued by Spain's most troubled banks, although finance ministers have rejected such a move, The Wall Street Journal reported Monday, citing people familiar with the discussions. The report said the new position was presented by ECB President Mario Draghi at a meeting of euro-zone finance ministers on July 9. The position is a turnaround from the ECB's position in 2010, when it successfuly insisted that senior bondholders of Irish banks shouldn't suffer losses. The report said finance ministers rejected the advice on Spain out of fear financial markets would react badly.