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EU proposes cross-border bank rescues: draft | Reuters

European Union countries could be obliged to bail out one another’s struggling banks, according to a draft EU law that marks a big step towards greater EU financial integration likely to upset some members, particularly Germany…

The European Commission, the EU’s executive, will propose the rules on June 6, to grant local regulators what one official described as “aggressive intervention powers” to take control of stricken banks, break them up and impose losses on their bondholders.

If accepted by EU member countries, it would be a first step towards a pan-EU system of supervising and paying for the winding up of banks in difficulty, a vital element of the “banking union” the European Central Bank has called for.

via EU proposes cross-border bank rescues: draft | Reuters.

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