The European Commission is taking legal action against six European countries, including the Netherlands and Luxembourg, after they failed to implement rules that would allow for depositors to have their cash confiscated.
Six countries will be referred to the European Court of Justice (ECJ) for their continued failure to transpose the EU's "bail-in" laws into national legislation, the European Commission said last Thursday, according to The Telegraph.
Taxpayers bailed out banks in the first global financial crisis. Depositors will be in the firing line the next time. Photo: AFP
Most EU countries, UK, the U.S., Canada, Australia and New Zealand all have plans for bail-ins in the event of banks and other large financial institutions getting into difficulty. It is now the case that in the event of bank failure, personal and corporate deposits could be confiscated.
The referral comes after the EU issued a warning against Poland, the Netherlands, Luxembourg, Sweden, Romania and the Czech Republic for their non-compliance earlier this year. Read more
No comments:
Post a Comment