Brussels looks to bank investors not taxpayers

Proposals were adopted by the European Commission on the 6 June 2012 for EU-wide rules for bank recovery and resolution. The proposals ensure that in the future authorities will have the means to intervene decisively both before problems occur and early on in the process if they do.

Furthermore, if the financial situation of a bank deteriorates beyond repair, the proposal ensures that a bank's critical functions can be rescued while the costs of restructuring and resolving failing banks fall upon the bank's owners and creditors and not on taxpayers.

ESO: Background information: Brussels mulls cross-border rules to wind up failing banks http://www.europeansources.info/record/brussels-mulls-cross-border-rules-to-wind-up-failing-banks/

European Commission: RAPID: Press Release, IP/12/570: New crisis management measures to avoid future bank bail-outs http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/570&format=PDF&aged=0&language=EN&guiLanguage=en

European Commission: DG Internal Market and Services: Banking: Crisis management http://ec.europa.eu/internal_market/bank/crisis_management/index_en.htm

EUObserver, 6.6.12: Brussels: 'Banks should pay for banks' http://euobserver.com/19/116517

European Commission: Memo/12/416: Bank recovery and resolution proposal: Frequently Asked Questions http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/416&format=HTML&aged=0&language=EN&guiLanguage=en

European Commission: Memo/12/413: The banking union http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/413&format=HTML&aged=0&language=EN&guiLanguage=en

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