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The Euro banking stitch-up
Europe’s banking union is being hailed as the big fix for the too big to fail banks. It is anything but, warns TOM GILL

A FEW weeks ago MEPs finally signed off the European banking union. This, we are told, is the big fix to the out-of-control banking system that caused the 2008 economic meltdown that has rocked Europe ever since.

We are also told that whereas in the US regulators and the central bank took swift action to stem banking problems, the patchwork of national interests across Europe prevented countries from forging a united front to do the same. But this is all to change with a “union” and the clean-up of banks’ books. 

A new European authority will have the power to wind up or restructure failing banks — the so-called single resolution mechanism (SRM). And a common fund, financed by bank levies, will be established so that emergency cash can be injected into failing banks. 

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