"The European Commission Wednesday proposed that each European Union government levy a tax on its banks and use the proceeds to create a fund dedicated to ensuring the "orderly failure" of troubled banks. The proposal would create a European network of such funds that would follow the same rules, although the commission, the EU's executive arm, didn't provide details on how high the tax should be. But the commission is adamant that the funds shouldn't be used to pump capital into banks or for other measures that could benefit bank shareholders and creditors. Otherwise banks might be encouraged to take bigger risks, knowing the funds are there to support them if they run into trouble." Read more.
The Wall Street Journal, May 26, 2010.
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