EU President Calls for Central Fund to Wind Down Failing Banks

European leaders proposed an industry-financed fund to cover costs of winding down failing euro-area banks, seeking to deepen the bloc’s integration and limit fallout from future financial crises.

Nations in the currency bloc should back the creation of a centrally managed “European Resolution Fund,” according to a report prepared by European Union President Herman Van Rompuy. The fund would be financed by levies on banks and could have a credit-line to the euro area’s firewall fund for sovereigns, according to the report.