rescuing troubled banks from taxpayers to the banks’ creditors,
including the holders of large deposits as a last resort.
The finance ministers from the 27-nation bloc met Tuesday in
Brussels to hammer out the new rules on how to fund bank rescues as part of their wider project to set up a banking union.
their plans to strengthen the financial sector avoid a repeat of the
crisis.
snip
Tuesday’s meeting focused on establishing a hierarchy of which bank
creditors have to take losses — to be involved in a so-called “bail-in” — in case the bank needs rescuing.
banks’ shareholders and capital must take the first hit. After that, the pecking order becomes less clear, with junior and senior bond holders
and, ultimately, all the banks’ clients on the line.
The ministers said holders of deposits of over 100,000 euros ($130,000) — the EU’s
deposit insurance ceiling — could be asked to suffer losses.
however, that depositors would only be asked to take losses as a last
resort and that there could be exceptions.
euros must and will be “sacrosanct,” insisted EU Commissioner Michel
Barnier, who is in charge of financial market reform
http://www.washingtonpost.com/world/europe/eu-finance-ministers-seek-ways-to-reduce-tax-avoidance/2013/05/14/f3706622-bc68-11e2-b537-ab47f0325f7c_story.html