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EU Mulls Easing Bank-Failure Rules to Align With Global Standard

  • Commission considers holding biggest lenders to FSB TLAC rules
  • Discussion paper raises questions about EU bail-in tool

The European Union is considering easing bank-failure rules introduced to end the era of expensive taxpayer-funded bailouts.

A discussion paper prepared by the European Commission, the EU’s executive arm, envisions setting EU loss-absorbency requirements for its biggest banks, led by HSBC Holdings Plc and Deutsche Bank AG, in line with those issued in November by the Financial Stability Board for the world’s 30 most systemically important lenders. The paper, dated this month and seen by Bloomberg, “explores possible options” for implementing the FSB rule in the EU and isn’t binding on the Brussels-based commission.