The agreement gives banks two months to draft plans to fix weaknesses in their systems.
Letting big banks get bigger and having them draft their own liquidation plans is the key to ending too-big-to-fail?
FORBES: "Living Wills" For Banks Won't Kill Systemic Risk Or Greed
There was some news this morning on the housing front, a draft agreement between major banks and the states over foreclosure practices.
The EU Parliament has just issued a draft law stating that banks may only pay a bonus to bankers of up to one times annual base salary (twice if the shareholders vote to allow such).
FORBES: The Difference In The Swiss And European Union Controls On High Pay
Ms. Choure, who has been in the disinvestment department since last summer, said that a draft integrity pact for investment banks is now awaiting regulatory approvals, including one from the Central Vigilance Commission.
An official draft of the rule which prohibits banks from the profitable business of trading with their own money was released last month, and it seems to be leaving a lot of unanswered questions.
The draft claims that conditions apply only to banks but it also tells Spain to implement macroeconomic reforms demanded by the European Commission.
In addition, new accounting rules would make it easier to get an overview of the scale of the banks' bad debt problem, according to the draft.
Perhaps the most striking characteristics of today's agreement - which amends a draft first published in 2010 - is that banks will be allowed to include corporate bonds, some shares and high-quality residential mortgage backed securities in their permitted stocks of liquid assets.
Under the draft legislation, the Treasury would have the authority to decide which banks ring-fencing should apply to, as well as specific activities to be undertaken within ring-fenced banks.
The draft memorandum requires the Bank of Spain to provide regular updates on ailing banks to the European Commission, the European Central Bank and the IMF.
应用推荐