Drastic Warning in Germany against New Bailout
May 21, 2011 • 3:50PM

An interesting episode may shed some extra light on the ongoing international faction-fight over the bailout issue: at a special hearing of the Bundestag financial policy committee on May 5 (that is one day before that "secret" meeting in Luxembourg), Jochen Sanio, head of the German financial market watchdog BaFin, categorically balked against running another big bailout: "We did it once, and we cannot do it a second time, we simply can't." Asked why it could not and should not be done a second time, Sanio said, "Then the taxpayers would come and hang all of us." Apparently, the word got around in the Bundestag, because the weekend after, rumors began to have it that Merkel was running short of her majority in the parliament for passing the permanent euro bailout fund.