EU Unveils Debt Writedown Law as Step Toward Banking Union
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Senior unsecured creditors will be put in the firing line to cover costs from failing lenders under European Union plans unveiled today, as the bloc seeks to end an era of bank bailouts and move toward more unified financial supervision.
Michel Barnier, the 27-nation bloc’s financial services chief, said the plans, which also include the setting up of a network of national bank-financed funds to stabilize crisis-hit lenders, are a necessary step to curb excessive risk taking and take taxpayers off the hook for rescues.