New levy on banks in Europe for crisis funds
According to Michel Barnier, such funds would provide a part of a broader system, keeping in mind measures to prevent future financial crisis.
To manage the failures in an orderly way, the banks would be required to pay a levy into the funds and would not be used to bail out the failing banks.
According to the proposal by EU, the resolution funds would not be used as an insurance policy by the shareholders and uninsured creditors.
Moreover the commission does not disclose anything about how bank resolution funds would be expected to operate. The proposals will be presented in June 2010 to the EU finance ministers, head of state, and the G20.
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Posted by PatrickFerrel on May 27 2010 Filed under Europe. You can follow any responses to this entry through the . You can leave a response or trackback to this entry
Germany mourns victims of Love Parade stampede
