Commission seeks views on possible EU framework to deal with future bank failures
Following the publication of a Communication on 20 October 2010 on a European crisis management framework for the financial sector, the European Commission has today launched a consultation on technical details underpinning that framework.
Internal Market and Services Commissioner Michel Barnier said: "Although our first objective is better prevention, banks will fail in the future and must be able to do so without bringing down the whole financial system. That is why we must put in place a system which ensures that Europe is well prepared to deal with bank failures in an orderly manner – without taxpayers being called on again to pay the costs. A clear framework to manage cross-border banking crises is an essential complement to our work on supervisory and bank reforms."