News Summary: EU shapes bank failure rules
News Summary: EU finance chiefs make fresh attempt to shield taxpayers from bank failure costs
German Finance Minister Wolfgang Schaeuble speaks at a press conference about the German budget in Berlin, Germany, Wednesday, June 26, 2013. The government of Europe biggest economy finalized the budget for 2013 and the budget plan for 2014. (AP Photo/Markus Schreiber)
BANK BAILOUTS: European Union finance ministers are trying again to set up rules on who will pay for bank bailouts without making taxpayers foot the bill.
GUIDELINES: The rules under discussion on Wednesday seek to determine the order in which investors and creditors would have to pay to bail out a bank. Following the 2008-2009 financial crisis, countries like Ireland, Britain and Germany each had to pump billions of fresh capital into ailing banks to avoid the financial system from collapsing.
THE ISSUE: A key stumbling block is who to hit hardest: Should it just be banks' creditors and shareholders, or should small companies and ordinary savers holding uninsured deposits worth more than 100,000 euros ($132,000) also be included?
