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ECOFIN Council approves single supervisory mechanism for banking
The Council adopted regulations creating a single supervisory mechanism for the oversight of banks and other credit institutions, thus establishing one of the main elements of Europe's Banking Union. (Includes statements by President Barroso, Commissioner Barnier and ECOFIN chair Šadžius.)
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Responses to Council's adoption of the SSM: EBF, BaFin
EBF chief executive Guido Ravoet said it was "a true milestone in the Banking Union project". BaFin president Dr Elke König called it a 'starting signal' for improvement in many areas.
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Sorting out troubled banks: Economic and Monetary Committee starts work on rules
Rapporteur for rules on dealing with struggling banks Elisa Ferreira backed the key tenets of the Commission's proposal, including placing the EU executive at the heart of the system.
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Remarks by VP Rehn at the Eurogroup press conference
"The guiding principles behind our approach to bank restructuring and resolution are that taxpayers should be protected and financial stability be maintained. In this context, there is a clear pecking order to be followed in case next year's balance sheet assessments reveal capital holes."
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VP Rehn: Letter to EU Finance Ministers on treatment of public capital injections under EDP rules in balance sheet assessment/stress tests
Rehn said that any bank recapitalisations needed after next year's AQR and the EBA's stress test will, in general terms, be seen as one-off or temporary measures and therefore will not be counted against the Member State in the context of the EDP.
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ECB/Mersch: "A cascade of backstops"
In an interview with the FAZ, Mersch laid out the benchmark for the balance sheet assessment, and elaborated on the different stages of bail-in and bail-out in the event of a shortfall.
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Germany hardens stance on common eurozone safety net for banks
Germany has dug its heels in on how to deal with failing banks, with Berlin underlining its resistance to using the ESM as the ultimate backstop for the stress test next year.
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FT: Brussels warns on bank bailout loophole
Brussels has warned EU states that they will not be able to circumvent competition rules and shield all creditors from losses in failed banks, even if provisions allowing taxpayer bailouts are included in law.
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Commissioner Barnier: UK banks and the EU single market - what now?
Speaking at the BBA's annual international banking conference, Barnier looked at the changes already effected, the necessity of completing the Banking Union, and the eventual shift of focus to long-term financing.
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BdB: Press ahead with Banking Union to strengthen the eurozone
BdB president Jürgen Fitschen encouraged the introduction of a single European resolution fund but argued that a single European deposit guarantee scheme would be premature at the present stage.
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VP Rehn's blog: Better to be safe than sorry when exiting monetary stimulus
"Once the US fiscal stalemate is resolved ... there is another major policy issue around the corner: how to exit smoothly from unconventional monetary policy in a world of deep economic interdependence."
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Jean-Claude Trichet: Central banking in the crisis - Conceptual convergence and open questions on unconventional monetary policy
Delivering the 2013 Per Jacobsson Lecture in Washington, Trichet looked at why the financial system of the advanced economies had proved as 'fragile as a house of cards'. He summarised the major observations and guiding principles on monetary policy in present times
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CEPS/Delbecque: Proposal for a Stabilisation Fund for the EMU
This paper argues that it should be possible to complement Europe's Economic and Monetary Union with an insurance-type shock absorption mechanism to increase the resilience of member countries to economic shocks and reduce output volatility.
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Peterson Institute/Funk Kirkegaard: The ECB's new pressure tactics on Member States' taxpayers
Since 2010, the ECB has generally prevailed in its clashes with euro area governments. Expect the game of chicken to continue, but expect volatility as a result.
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