Correspondent, Brussels
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Apr 11, 2013

EU ministers to tackle Cyprus fallout, banking union at Dublin talks

DUBLIN, April 11 (Reuters) – Fallout from the messy bailout
of Cyprus will top the agenda of a two-day EU finance ministers
meeting in Dublin beginning on Friday, with focus also on
growing German reluctance over euro zone banking reform.

Unease surrounding the rescue package for Cyprus grew on
Wednesday after Reuters and other news organisations obtained
documents detailing how the bailout will be financed and how
much of the total Cyprus is now expected to contribute.

Apr 10, 2013

EU mulls bank law to impose losses on depositors

BRUSSELS, April 10 (Reuters) – European Union ministers will
consider a proposal this week to impose losses on interbank
deposits of lenders in dire financial trouble as they shape a
draft EU law introducing powers that would also penalise those
with big savings.

Such an idea, should ministers back it, could further rattle
the confidence of lenders, already nervous about draft
legislation to determine who alongside shareholders should
suffer losses when a bank gets into trouble.

Apr 8, 2013

Austria feels heat of EU’s anti-bank-secrecy drive

BRUSSELS (Reuters) – The European Commission warned Austria on Monday that its banking secrecy regime would leave it in a “lonely and unsustainable position” if it did not follow the same rules as other countries in sharing information on foreign depositors.

As part of a drive to curb tax evasion, Germany has been putting pressure on all “offshore” banking centers in Europe to apply uniform rules on exchanging account holders’ information, with particular attention on Luxembourg and Austria, the only EU states holding out.

Mar 27, 2013

Blunt Dutchman casts doubt on Europe’s bank promise

BRUSSELS, March 27 (Reuters) – Blunt remarks by a leading
minister saying European support for troubled banks is a last
resort laid bare what has long been an open secret in Brussels:
promises to create a euro zone backstop for banks may never be
fulfilled.

Designed to secure a level playing field in the euro zone
and prevent vulnerable countries having to contain financial
problems alone, a European banking union was one of the biggest
political commitments made to underpin the euro.

Mar 27, 2013

EU to push for losses on big savers at failed banks

BRUSSELS (Reuters) – The European Parliament will demand that big savers take losses if their banks run into trouble, a senior lawmaker told Reuters, adding momentum to a policy unveiled as part of a Cypriot bailout.

Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many experts believe it marks a dramatic change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts.

Mar 26, 2013

EU to push for losses on big savers at failed banks: lawmaker

BRUSSELS (Reuters) – The European Parliament will demand that big savers take losses if their banks run into trouble, a senior lawmaker told Reuters, adding momentum to a policy unveiled as part of a Cypriot bailout.

Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many experts believe it marks a dramatic change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts.

Mar 25, 2013

EU Commission says capital controls in Cyprus must be brief

BRUSSELS, March 25 (Reuters) – Cyprus may impose controls on
the movement of capital but only for a temporary period of time,
the European Commission said on Monday, hours after the island
sealed a deal to close its second-largest bank in return for
international aid.

“Any measures to restrict or limit freedom of movement may
only be enacted exceptionally and temporarily and that is what
has been requested by the Cypriot authorities,” Michel Barnier,
the European Commissioner responsible for the 27-member European
Union’s single market, told a news conference in Brussels.

Mar 21, 2013

EU lawmakers split over extending bonus cap to fund managers

BRUSSELS, March 21 (Reuters) – A European Parliament panel
called on Thursday for tighter control of fund managers’ pay,
but lawmakers were split over pushing for the kind of strict
bonus cap imposed on bankers.

Broad support in the parliament for wider controls comes
after lawmakers succeeded in capping banker bonuses at the level
of salary, a move to address public anger at a pay culture
politicians say prompted reckless risk taking and ultimately
triggered the financial crisis.

Mar 21, 2013

EU lawmakers back tighter control of fund manager pay

BRUSSELS, March 21 (Reuters) – A European Parliament panel
called on Thursday for tighter control of fund manager pay, but
a senior lawmaker who oversaw the vote indicated it was unlikely
to approve the kind of strict bonus cap imposed on banks.

While some members of the European Parliament responsible
for financial regulation believed it would be unfair to penalise
fund managers in the same way as bankers, a show of hands showed
strong enough support for some form of restrictions.

Mar 20, 2013

Bankers get one last bonus season before EU cap on payouts

BRUSSELS (Reuters) – Bankers in Europe will have one final bonus season before they are barred from awarding themselves payouts worth more than their salary, EU lawmakers agreed on Wednesday, paving the way for the first cap of its kind globally.

The cap is designed to address public anger at a bonus-driven culture many European politicians believe encouraged the risk-taking that led to the near-collapse of many of the region’s biggest banks.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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