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
European flags are on display in front of the headquarters of the European Central Bank (ECB) in Frankfurt am Main, western Germany, on June 29, 2015. After talks between Athens and its creditors broke down, leaving Greece headed for an EU-IMF default and possible exit from the eurozone, the ECB said on June 28, 2015 it would keep open Emergency Liquidity Assistance (ELA) to the debt-hit country's banks. AFP PHOTO / DANIEL ROLAND (Photo credit should read DANIEL ROLAND/AFP/Getty Images)
Photographer: Daniel Roland/AFP via Getty ImagesGermany 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.