Nordea CEO hopes that international regulations will allow banks to fail in future crises.

• “Let the troubled banks fall”
• “Financial institutions are socialist bastions”

Christian Clausen, chief executive officer of the Nordic region’s biggest bank Nordea, said that it's irresponsible when politicians automatically keep troubled and mismanaged banks afloat. In some cases, it would be preferable to let them fall.

“The bad banks should go bankrupt and customers suffer. That is just not something that has been politicaly acceptable as it would hit the customers,” Christian Clausen said in an interview with the Danish management magazine Lederne.

He hopes that international regulations will allow banks to fail in future crises.

“I feel that would be sensible. So when you begin to see the imaginative ads for financial products during the next boom. You should have a critical reaction – just as you do in other areas,” he said, website politiken.dk wrote.

Just as bankrupt airline or building company customers are not saved by the state, neither should banks be automatically rescued.

"The self-discipline in choosing a bank you believe in has been cut away by the ‘too big to fail’ principle,” Clausen told the management magazine.