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EU Softens Push to Keep Clients From Exiting Failing Banks

  • Diplomats may bring rule in line with international standards
  • Clients could face shorter payment stays when banks fail
EU Parliament Building As EU Ministers Try To Meet Debt Deadline
Photographer: Jock Fistick/Bloomberg
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European Union policy makers are softening plans to stop clients pulling money from banks suffering a financial crisis, according to a draft plan seen by Bloomberg News.

Regulators have been debating the length of time that traders and other clients should be suspended from yanking funds when a lender is deemed to be failing. An earlier proposal for two separate moratoria, each lasting as long as five days, has been shortened to two days maximum in the latest version of the policy after banks warned it would lead to systemic risk.