Banking union: Nice idea but detail still devilish

BRUSSELS/DUBLIN (Reuters) – In the beginning, the European Union came up with two words: Banking Union. But in the 18 months since the idea was put on paper, the phrase has come to mask a vastly complicated and not yet very united system that may fall short of resolving the problems afflicting Europe’s banks over the past five years. From a Single Supervisory Mechanism to a Single Resolution Mechanism, incorporating a split-level authority and a Single Resolution Fund, Europe’s banking union has become a multi-headed hydra offering little clarity on when or how quickly a bank’s problems can be sorted out.

    

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