Print section Print Rubric: Europe’s framework for dealing with troubled banks is working, but has one big drawback Print Headline: Senior moment Print Fly Title: European banks UK Only Article: standard article Issue: Trump’s Washington is paralysed Fly Title: Senior moment IF ONE goal has animated the reform of finance since the crisis of 2007-08, it has been a desire to spare taxpayers from having to pick up the bill for bank failures. Regulators have introduced stress tests to see how banks stand up to shocks; America’s latest round of tests concluded this week (see article). They have forced banks to fund themselves with more equity and to issue layers of debt that are earmarked for losses in the event of severe trouble. They have even asked banks to draw up plans for their own dismemberment in the event of failure. The first real tests of this post-crisis machinery were always going to happen in Europe, which has been ...
from Banking Services http://www.economist.com/news/leaders/21724394-liquidation-two-italian-banks-raises-awkward-questions-criticism-overdone?fsrc=rss
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