In These New Times

A new paradigm for a post-imperial world

Council agrees position on bank resolution

Posted by seumasach on June 27, 2013

The main resolution measures would include:

– the sale of (part of a) business;

– establishment of a bridge institution (the temporary transfer of good bank assets to a publicly controlled entity);

– asset separation (the transfer of impaired assets to an asset management vehicle)

– bail-in measures (the imposition of losses, with an order of seniority, on shareholders and unsecured creditors).

These measures lay the basis for Eurozone control of a banking system purged of its bad bebts, the costs to be met by shareholders and bondholders rather than the taxpayer. It marks the end of the bailouts of the banks. It will be interesting to see the response of the British government: they will not be able to veto it.

Council of the European Union

27th June, 2013

The Council today1 set out its position on a draft directive establishing a framework for the recovery and resolution of credit institutions and investment firms (11148/1/13 REV 1).

Read more

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
Follow

Get every new post delivered to your Inbox.

Join 956 other followers

%d bloggers like this: