Daily Archives: December 15, 2013

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European legislators have agreed on a rulebook that investors and banks to fund bailouts reinforcing protection for depositors and taxpayers

European legislators have agreed on a rulebook that investors and banks to fund bailouts reinforcing protection for depositors and taxpayers

European legislators have agreed on a rulebook for restructuring and winding-up banks that will shift the burden of costly bailouts away from taxpayers and onto banks, their shareholders and their creditors.   

Under the new rules, a failing bank’s investors will be ‘bailed-in’ with any additional funds needed to be taken from resolution funds built up by the banking sector.   

All deposits up to €100,000 will be protected, while consumers and small and medium size enterprises with deposits over €100,000 will only suffer losses once secured creditors have paid up.   

As demanded by Wolfgang Schauble, Germany’s finance minister, the bail-in rules will apply as from 1 January 2016, or two years earlier than originally foreseen.   

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She got a foreclosure notice – for her late husband

She got a foreclosure notice – for her late husband

WASHINGTON Billions of dollars in foreclosure settlements between big banks and government regulators haven’t helped Laura Biggs. The California woman is scheduled to lose her home nine days before Christmas because her mortgage company concluded that the house is no longer the primary residence of her husband, who’s been dead since 2003.

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RBS says did not mislead investors in $6.5 billion lawsuit defense

RBS says did not mislead investors in $6.5 billion lawsuit defense

Royal Bank of Scotland (>> Royal Bank of Scotland Group plc) said it and its former bosses might have made bad business decisions in the past but that did not mean they misled investors or acted illegally, as the bank defended itself against a 4 billion pound (US$6.5 billion) lawsuit from shareholders.

Royal Bank of Scotland (>> Royal Bank of Scotland Group plc)said it and its former bosses might have made bad business decisions in the past but that did not mean they misled investors or acted illegally, as the bank defended itself against a 4 billion pound (US$6.5 billion) lawsuit from shareholders.

RBS’s defense document, lodged in London’s High Court late on Friday, said “it was clear to the market” that the bank’s core Tier 1 capital ratio — a key measure of financial strength — was “significantly below 4 percent” at the time of a rights issue in 2008, even though it did not publish a figure.