i on europe

Icon

Brussels blog by some wire service journalists

EU Commission proposes centralized bank rules

By DON MELVIN

BRUSSELS — The European Union’s executive branch proposed Wednesday a system of centralized banking regulations that would ensure that taxpayers would never again have to bail out ailing banks whose collapse would threaten the wider economy.

Barnier

Under the European Commission proposal, banks that posed no systemic risk to the national or international economy would simply be allowed to fail. But those whose failure would pose too grave a threat to the stability of financial markets would be propped up in part by having unsecured creditors of the bank, such as bondholders and shareholders, take losses rather than having taxpayers give the institution rescue money.

“We don’t want taxpayers to have to pay,” said Michel Barnier, the European commissioner responsible for the internal market, as he outlined the proposals in Brussels on Wednesday. “We’re going to break the link between banking crises and public budgets.”

READ THE FULL STORY HERE.

Advertisements

Filed under: Story links

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Don Melvin

Slobodan Lekic

Raf Casert

%d bloggers like this: