This is particularly illustrated in a ECB working paper by Holthausen and Ronde (2004)4 showing that with increasing financial  1  See, e.g. Gros, D (2012), “An incomplete step toward banking union”, CEPS discussion paper.
To get it right, we need to ensure that the interests of shareholders, creditors and management are aligned with those of society. It is therefore essential that policy-makers stand by the Directive. There is no room for exceptions. There is no room for hesitation. And we should not surrender to sceptics.