(27 Jun 2013) SHOTLIST
AP TELEVISION
1. Mid of journalists waiting for ministers to depart
++NIGHT SHOTS++
2. SOUNDBITE (French) Pierre Moscovici, French Finance Minister:
“For me it did not seem coherent to put in place a direct mechanism of a recapitalising by the EMS (European Monetary System) and on the other hand to exclude the EMS from the game of stability. It is on this matter that we left, a thesis that I was defending which did not completely convince everybody last week. The spirits since then have evolved and we reached an agreement on basis for France is really satisfying because in reality it is what we always wanted.”
3. Moscovici departing
4. Cutaway of media
5. SOUNDBITE (English) Greg Clark, UK Financial Secretary to the Treasury:
“It’s been very important for the UK to secure a credible bail-in tool. We’ve done that. We’ve achieved all our objectives. We’ve been able to secure depositor preference in line with the recommendation of the Vickers report in the UK. And we have been pleased to have recognition that our bank levy, which is the largest in Europe, will count towards the financing of this mechanism. So, a very good night and a very big step forward for the markets. Thank you very much indeed.”
++INTERIOR SHOTS++
6. Set-up of Wolfgang Schaeuble, German Finance Minister
7. SOUNDBITE (German) Wolfgang Schaeuble, German Finance Minister:
“The talks were lengthy, quite difficult and intense. But it was to be expected. For the first time the principle is clear that when banks get in trouble, not the tax payers, but the owners and the creditors of the banks will have to pay.”
8. Cutaway of journalist
9. SOUNDBITE (English) Jeroen Dijsselbloem, Dutch Finance Minister:
“That’s a major shift from the public means from the taxpayer, if you will, back to the financial sector itself, which will now become for a very large extent, responsible for dealing with its own problems.”
10. Wide pan of media conference
11. SOUNDBITE (English) Michael Noonan, Irish Finance Minister:
“We have now agreed on a structure and a hierarchy to deal with failing banks in a manner which protects tax payers. These common rules, which will apply equally across member states, are an integral part of the European Union’s banking union.”
12. Mid of journalists
STORYLINE
The European Union has struck a deal on rules establishing who will pay for bank bailouts in the future without taxpayers having to foot the bill.
The agreement reached by the EU’s 27 finance ministers after seven hours of negotiations early Thursday is an important step toward establishing Europe’s so-called banking union with the goal of restoring financial and economic stability to the bloc.
The set of rules determines the order in which investors and creditors will have to take losses when a bank is restructured or shut down, with a taxpayer-funded bailout being only a limited last resort.
“That’s a major shift from the public means, from the taxpayer if you will, back to the financial sector itself which will now become for a very, very large extent responsible for dealing with its own problems,” said Dutch Finance Minister Jeroen Dijsselbloem.
Greg Clark, UK Financial Secretary to the Treasury, said the UK had achieved its objectives by securing a credible bail-in tool.
“We have been pleased to have recognition that our bank levy, which is the largest in Europe, will count towards the financing of this mechanism,” he added.
At the summit, the EU leaders are expected to take stock of the progress of the bloc’s financial and economic policies.

Find out more about AP Archive:
Twitter:
Facebook: ​​
Instagram:

You can license this story through AP Archive: …(read more)

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

EU finance ministers have established rules for who will pay for bank bailouts in the future. This decision is a significant step towards creating a more stable and predictable banking system in the European Union.

Under the new rules, the first line of defense in the event of a bank bailout will be the shareholders and the creditors of the bank. These stakeholders will bear the financial burden of the bailout before any public funds are used.

If the losses are significant enough that shareholder and creditor funds are not enough to cover them, then a portion of the bank’s senior bonds and deposits may be converted into shares. This would help to raise additional capital for the bank, but it would also mean that some of the bank’s investors would lose some or all of their investments.

Finally, if these measures are not enough to cover the losses, public funds could be used to support the bank. In this case, the EU would seek to minimize the cost to taxpayers by imposing losses on the bank’s shareholders and creditors before any public funds are used.

The new rules will apply to banks in all EU Member States, and they will also apply to banks that operate outside of the EU but have significant activities in the EU.

The establishment of these rules is a major step forward in the creation of a more stable and predictable banking system in the EU. By establishing clear rules for who will bear the costs of future bank bailouts, the EU is sending a strong signal to investors that they need to take responsibility for their investments and that public funds will only be used as a last resort.

In addition to improving stability and predictability, the new rules will also help to increase transparency and accountability in the banking system. Banks will now be required to disclose their minimum requirements for eligible liabilities, and they will also be required to provide regular updates on their compliance with these requirements.

Overall, the establishment of these rules is a positive development for the EU and for the banking sector. It provides clarity and certainty to investors, and it helps to ensure that banks take responsibility for their own risks and losses. By doing so, it lays the foundation for a more resilient and sustainable banking system in the years ahead.