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ECB's watchdog could get power to order bank closures—sources
Reuters ^ | Wed Aug 1, 2012 3:35pm IST | John O'Donnell and Marc Jones

Posted on 08/06/2012 10:41:27 AM PDT by Olog-hai

The European Central Bank's watchdog for banks could get the power to order the closure of lenders in what would be a radical step to tackle the crisis, prompting concerns by policymakers that such responsibility could backfire.

The plan remains subject to intense debate between the ECB, the European Commission and member states, but officials and policymakers who spoke to Reuters have outlined a framework of how an ECB-sponsored über-watchdog could work.

Speaking on condition of anonymity, they said the latest plans envisage giving the eurozone's central bank the remit to police far more than just the currency area's 25 top banks, as originally expected.

It is also likely to be allowed step in above national regulators wherever it identifies problems at a smaller lender. …

Officials will also attempt to find agreement on giving the new bank supervisor the power to close failing lenders.

(Excerpt) Read more at in.reuters.com ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Government
KEYWORDS: ecb; europeanunion; eussr; totalitarianism

1 posted on 08/06/2012 10:41:35 AM PDT by Olog-hai
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