EU authorities won't ever write off bank bonds before shares, ECB says

European Union authorities will never write off bank bonds before shares are wiped out, whether a bank is being wound down or there are "private solutions" to rescue it, the European Central Bank's top supervisor Andrea Enria said on Tuesday.

He was reacting to UBS's rescue of Credit Suisse on Sunday, which has seen holders of Additional Tier 1 bonds lose everything while shareholders received $3 billion worth of UBS shares.

"This type of approach would not be feasible under the European framework and this would be the case of resolution ... but we as authorities would also apply the same approach in orchestrated private solutions," Enria said.