Europe Strikes Deal to Steal Bank DepositsSubmitted by JO4RP on Thu, 06/27/2013 - 07:00
Europe strikes deal to push cost of bank failure on investors
(Reuters) - The European Union agreed on Thursday to force investors and wealthy savers to share the costs of future bank failures, moving closer to drawing a line under years of taxpayer-funded bailouts that have prompted public outrage.
After seven hours of late-night talks, finance ministers from the bloc's 27 countries emerged with a blueprint to close or salvage banks in trouble. The plan stipulates that shareholders, bondholders and depositors with more than 100,000 euros ($132,000) should share the burden of saving a bank.