The Italian government has approved a €20-billion bail-in for banks on the brink of failure.

the-original-bail-inItaly has now joined the “bail-in” crowd. In this particular case, the bail-in will use bondholders’ money. But depositors will be on the hook in future cases in Europe.

Those who are shocked by this development are not paying attention. The template for this manner of dealing with financial issues was first laid out in Cyprus in 2012-2013.

Anyone who wants to understand how the next global banking crisis will unfold should take heed. Read more: