EU Lawmakers Seek Public Loan Backstop for Euro-Area Bank Plan
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Key European Union lawmakers say a planned euro-area system for handling failing lenders should have access to public money until a common resolution fund is filled by levies on the banking industry.
EU lawmaker Elisa Ferreira, who’s in charge of guiding the European Commission’s plan for a Single Resolution Mechanism through parliament, proposed the backstop as one of a raft of draft amendments to the bill. Loans would later be repaid by the fund, according to the text of the amendment on the EU’s website.