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Continued: EU finance chiefs reach deal on rules shielding taxpayers from the cost of bank failures

  • Article by: JUERGEN BAETZ , Associated Press
  • Last update: June 26, 2013 - 11:30 PM

The deal was rapidly overhauled, but holders of large deposits in some banks were forced to take harsh losses.

In the U.S., the Federal Deposit Insurance Corp.'s rules specify that deposits larger than $250,000 might have to take losses in case of bank failures.

The EU's new rules also foresee the establishment of national bank restructuring funds, which would eventually be merged into a European resolution authority, one of the banking union's three pillars.

Another part of the banking union will be centralized oversight of big banks anchored at the European Central Bank that is due to be operational next year. But the discussion on the third section, a jointly guaranteed deposit insurance, is only in its early stages.

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