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View Full Version : Too-Big-to-Fail Banks Face New Limits Under EU Plan - EU may Shift Bank Failure Costs: Official


ang
04-01-2011, 11:45 AM
The EU are now considering giving "National Regulators" new powers which could include measures listed below.The European Commission is scheduled to propose the measures as early as next week:-

Powers to block new products and limit trading risks

Changes to legal or operational structures

Requiring the credit institution to limit its maximum individual and aggregate exposures

Forcing banks to “limit or cease some of their "business activities"

Also:-


Authorities would have a “statutory power” to “either write off subordinated debt or convert it into an equity claim,” as well as the ability to enforce losses on senior debt “by a discretionary amount,” via one policy option considered by the commission and mentioned in the document.

http://www.bloomberg.com/news/2011-01-04/banks-gauged-too-big-to-fail-face-limits-on-trading-risk-under-eu-proposal.html
C. Flower
04-01-2011, 11:59 AM
The EU are now considering giving "National Regulators" new powers which could include measures listed below.The European Commission is scheduled to propose the measures as early as next week:-

Powers to block new products and limit trading risks

Changes to legal or operational structures

Requiring the credit institution to limit its maximum individual and aggregate exposures

Forcing banks to “limit or cease some of their "business activities"

Also:-



http://www.bloomberg.com/news/2011-01-04/banks-gauged-too-big-to-fail-face-limits-on-trading-risk-under-eu-proposal.html


Are they still trying to find a way of closing Anglo Irish down ?
ang
04-01-2011, 01:02 PM
Are they still trying to find a way of closing Anglo Irish down ?

The Bank that refuses to die.
TotalMayhem
04-01-2011, 02:44 PM
They don't die ... like Lehman Brothers is still very much alive and dealing in derivatives.
ang
04-01-2011, 04:27 PM
Latest Update on this story from Reuters.

A bit late for us where Anglo is concerned, Brian Lenihan has ensured "payment in Full" to those bondholders.


The proposal to pass the pain of a bank's failure on to bondholders is one of a series of measures designed to cope with lenders in difficulty. It could be law in Europe by 2012.

Officials hope it will guard against a repeat of the global economic crisis, triggered by a wave of bank failures.



http://www.reuters.com/article/idUSTRE7033OS20110104?feedType=RSS&feedName=businessNews&WT.tsrc=Social%20Media&WT.z_smid=twtr-reuters_biz&WT.z_smid_dest=Twitter