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EU Commissioner proposes central banking regulation, says taxpayers must not fund bail-outs
BRUSSELS (AP) ' The European Commission is proposing a system of centralized banking regulations it says will ensure that taxpayers won't have to bail out collapsing banks.
The proposal, unveiled Wednesday by Commissioner Michel Barnier, would allow national authorities to intervene early if a bank's solvency was in question, and empower them to replace the management and members of the board. The proposal also envisions unsecured creditors of the bank, such as bondholders and shareholders, taking losses rather than having taxpayers foot the bill
But the complex proposal, offers no solution for the EU's immediate problems. It's not scheduled to take effect fully until 2018. In any event, it also needs the approval of the European Council, composed of the leaders of the 27 EU countries, and the European Parliament.