|EU to Halt Rescues of Failed Banks|
|by Tom McGregor||Tue, Jun 5, 2012, 09:04 PM|
On Wednesday, the European Commission has unveiled new proposals designed to prevent taxpayers’ cash from being used to bail out failed banks.The BBC News reports that, “they aim to ensure losses are borne by bank shareholders and creditors and minimize costs to taxpayers.”
The EU is seeking to halt runs on banks in one nation – such as Greece or Spain – that could pull down the entire system. Nevertheless, the EU would continue to force failed banks to keep all their ATM’s operating for customers to withdraw their funds.
According to the BBC, “the global financial crisis has seen a succession of major banks fail, including Northern Rock, Lehman Brothers, leading Icelandic banks, the Belgian-Dutch giant Fortis and Franco-Belgia Dexia and the Republic of Ireland’s Anglo Irish Bank.”
Leaders of the G20 group of major economies approved the bank resolution plan in September 2009.
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