Taxpayers must be protected from failing banks - Kamall

30-Nov-2017 @ 15:00

Syed Kamall Syed Kamall

Syed Kamall Syed Kamall

Syed Kamall Syed Kamall

Taxpayers must be protected from failing banks - Kamall

Legislation to protect EU taxpayers from having to bail out failing banks has been supported today by Conservative MEPs

The creation of a new class of debt, which must be serviced by money set aside by banks, is intended to reduce the need for governments to intervene when institutions encounter financial difficulties and provides extra protection for customer deposits.

Member States, including the UK, which have already amended their insolvency rules to meet the new global standards, will be able to retain their own systems following pressure by Conservative MEP Syed Kamall, who helped steer the report through the European Parliament as a shadow rapporteur.

He has also been instrumental in introducing protection for stocks issued prior to the introduction of the new rules.

London MEP Mr Kamall said: "One of the priorities after the financial crisis should have been to make sure that taxpayers are no longer called upon to bail out banks when they get into difficulties. These measures help re-balance insolvency laws to ensure banks take more responsibility.

"I am pleased that the EU has avoided needless duplication by agreeing to my call for countries like the UK, which have already taken action, to be free to continue operating their own systems.

"This is only one step to show that we have learned the lessons from the last financial crisis. We still need to look at measures to ensure that bank directors take responsibility for failure and to reform accounting standards to prevent financial institutions from booking revenues up front while not making sufficient provision for losses on some financial instruments."

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