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EU lawmakers begin 'tough' talks on new bank oversight system

Published on Jan 8, 2014 9:11 PM

BRUSSELS (AFP) - The European Parliament launched "tough negotiations" with EU member states on Wednesday on enacting a new bank regulatory system meant to prevent any repetition of the financial crisis.

An agreement is needed before elections in May.

A parliamentary statement, foreseeing that the talks would be "tough", said that "positions are far apart, with MEPs insisting that the system must not be cumbersome or vulnerable to political back-room deals."

European finance ministers agreed in December what is known as a Single Resolution Mechanism, designed to step in and close down a failing bank before it can do too much damage to the economy.

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