Extracts from the press conference by Michel Barnier on the Bank Resolution Scheme
Type: Summary of press conference
End production: 06/06/2012 First transmission: 06/06/2012
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.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Soundbite by Michel Barnier, Member of the EC in charge of Internal Market and Services (in FRENCH) saying that they do not want tax payers to have to pay. The banks should pay for the banks. They are going to break the link between banking crisis and public budgets, the tax payer's money. They have to prepare for the future and deal with the short term issues as well. These are the two areas they have to address to establish confidence.
||Cutaway of the audience
||Soundbite by Michel Barnier (in FRENCH) saying that they want to avoid in the future the banking crisis. Each Member States has to be equipped with the appropriate tools to be able to take action in time, not when it is too late, to take preventive actions, to stop a risk becoming a crisis, and a crisis becoming a disaster and asking tax payers to pay the bill. They do not want governments in the future to find themselves with their back to the wall and no other option that inject public money to avoid a catastrophe for the society as a whole. Shareholders and bankers must take all their responsibility.
||Cutaway of a cameraman
||Soundbite by Michel Barnier (in FRENCH) saying that this will affect the Spanish banks. But basically, what they are trying to do is to avoid such a situation in the future both in Spain or elsewhere, by severing the link between banking crisis and public finances. In Spain at the moment what they need is to carry out a proper diagnosis which is what the Spanish authorities are doing with independent auditors at the moment. They are carrying out an audit with the Spanish banking sector at the moment.
||General view of the press conference