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A symbol of the crisis? EU lawmakers say new bank rules would prevent a repeat of the RBS bailout. (Photo: Fergus Ray Murray)

EU lawmakers reach agreement on bank rescue rules

MEPs and ministers have agreed new rules to rescue insolvent banks that would target bondholders not savers, following the final round of talks in Strasbourg.

The bank recovery and resolution directive, which will apply to all 28 EU countries, sets out the hierarchy of creditors to be 'bailed-in' in the event of a bank crisis.

Shareholders and bondholders would be first in line, with savers last in the queue, while tapping public money to prevent a bank collapse would only be don...

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Author Bio

Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.

A symbol of the crisis? EU lawmakers say new bank rules would prevent a repeat of the RBS bailout. (Photo: Fergus Ray Murray)

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Author Bio

Benjamin Fox is a seasoned reporter and editor, previously working for fellow Brussels publication Euractiv. His reporting has also been published in the Guardian, the East African, Euractiv, Private Eye and Africa Confidential, among others. He heads up the AU-EU section at EUobserver, based in Nairobi, Kenya.

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