Extracts from the press conference by Michel Barnier on the Bank Resolution Scheme
On 6 June 2012, Michel Barnier, Member of the EC in charge of Internal Market and Services, presented, during a press conference, new crisis management measures to avoid future bank bail-outs.
The proposals ensure that in the future authorities will have the means to intervene decisively both before problems occur in the banking sector and early on in the process if they do. Furthermore, if the financial situation of a bank deteriorates beyond repair, the proposal ensures that a bank's critical functions can be rescued while the costs of restructuring and resolving failing banks fall upon the bank's owners and creditors and not on taxpayers.
The proposed tools are divided into powers of "prevention", "early intervention" and "resolution", with intervention by the authorities becoming more intrusive as the situation deteriorates. SHOTLISTLINKLINK