EU regulators tell 11 countries to adopt bank bail-in rules

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BRUSSELS (Reuters) - The European Commission on Thursday gave France, Italy and nine other EU countries two months to adopt new EU rules on propping up failed banks or face legal action.

The rules, known as the bank recovery and resolution directive (BRRD), seek to shield taxpayers from having to bail out troubled lenders, forcing creditors and shareholders to contribute to the rescue in a process known as "bail-in".

The Commission drafted the rules in response to the financial crisis which started in 2008, giving the 28 countries in the European Union until the end of last year to apply them.
It said Bulgaria, the Czech Republic, France, Italy, Lithuania, Luxembourg, the Netherlands, Malta, Poland, Romania and Sweden had yet to fall in line.

"If they don't comply within two months, the Commission may decide to refer them to the EU Court of Justice," the EU executive said in a statement, referring to Europe's highest court based in Luxembourg.

http://ca.reuters.com/article/businessNews/idCAKBN0OD14Z20150528

So what does this mean????

- 11 countries face legal action if bail-in rules are not enacted within two months
- Bail-in legislation aims at removing state responsibility when banks collapse
- Rules place burden on creditors – among whom depositors are counted
- Austria abolished bank deposit guarantee in April
- “Bail-in regimes” coming globally

http://www.marketoracle.co.uk/Article50936.html