Key Features of Bank Resolution Deal Struck by EU Nations
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EU nations agreed on a framework for bank restructuring and resolution. The deal, which now must be negotiated with the European Parliament, spells out private-investor losses and conditions for receiving aid.
* Regulators will be required to write down creditors in order of seniority until losses reach 8 percent of the distressed bank’s liabilities, with some ability to shift losses among private investors. Above that threshold, they could grant exemptions and turn to national backstops instead of following the formula.