EU Agrees On System To Address Failing Banks

Law360, Washington (March 20, 2014, 2:50 PM EDT) -- The European Union on Thursday reached a tentative deal on a so-called single resolution mechanism centralizing authority for dealing with failing eurozone banks, one of several recent overhauls designed to prevent future financial crises within the EU.

The mechanism is designed to take the burden for bank bailouts off of national governments and thus taxpayers, which risks “disproportionate” negative effects to the EU as a whole, and to bring greater confidence in the eurozone banking sector, according to the European Commission.

The final shape of the...
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