Brussels considers a EU-wide "deposit guarantee scheme" to be funded by a new tax on banks,...

|By:, SA News Editor

Brussels considers a EU-wide "deposit guarantee scheme" to be funded by a new tax on banks, reports the Sunday Times. Top brass feels removing the threat of bank collapse can check the spread of contagion from Greece to Spain and beyond. It seems, however, Greek fears are less about deposit risk and more about denomination risk, i.e. waking up one morning to find your euro deposits converted to drachmas.