At the second time of asking, EU Finance Ministers have agreed on measures to deal with failing...


At the second time of asking, EU Finance Ministers have agreed on measures to deal with failing banks. Losses of up to 8% of a bank's total liabilities will first be imposed on shareholders, creditors and major depositors with over €100,000, after which governments will be able to supply funds of up to 5% of liabilities. As further protection for taxpayers, states will create resolution funds that they'll finance with levies on banks. EU leaders are set to approve the measures at a meeting today.

Comments (4)
  • PMRoth
    , contributor
    Comments (34) | Send Message
     
    A step in the right direction.
    27 Jun 2013, 08:48 AM Reply Like
  • Tack
    , contributor
    Comments (16182) | Send Message
     
    No, it's not a step in the right direction because Europe is mired in a deflationary spiral, and the proposed solution does nothing to recapitalize banks or expand the money supply. It merely assigns already-existing losses to various parties, all of which is just further deflationary.

     

    It helps neither the banks nor the general economy.
    27 Jun 2013, 09:22 AM Reply Like
  • caupachow
    , contributor
    Comments (522) | Send Message
     
    After all those meetings and time THAT is what they came up with?!
    27 Jun 2013, 10:02 AM Reply Like
  • funguide
    , contributor
    Comments (48) | Send Message
     
    touching deposits is a bad idea.
    27 Jun 2013, 11:47 AM Reply Like
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