Financial Times FT.com

EU adopts flexible stance on bank crises

By Tony Barber in Porto

Published: September 16 2007 20:32 | Last updated: September 16 2007 20:32

European Union finance ministers and central bankers decided at the weekend against establishing fixed rules in advance on how to bail out banks or other financial institutions that have cross-border operations in the EU.

The ministers and bankers agreed to adopt common principles for managing cross-border financial crises but left unanswered the question of how, if at all, the governments and taxpayers of different EU member-states should share the cost of rescuing a bank active in many countries.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this