Germany, U.K. Reject Softening EU Major Bank Failure Rules
- Nations propose fast TLAC introduction true to global standard
- Reject TLAC caps and weakening of resolution authorities
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Germany and the U.K. rejected efforts to soften the European Union’s implementation of global bank-failure rules intended to prevent taxpayer-funded bailouts.
The EU must quickly and fully enact total loss-absorbing capacity, or TLAC, standards adopted last year by the Financial Stability Board for the world’s biggest lenders to preserve the bloc’s credibility in the Group of 20 nations, according to a joint German-U.K. discussion paper obtained by Bloomberg. The two countries are home to five of the world’s most systemically important banks, including HSBC Group Plc and Deutsche Bank AG.