Reuters - Video

EDITION: U.S. | U.K. | IN

Business

A step closer to banking union but...

Wednesday, March 12, 2014 - 02:09

March 12 - European ministers have agreed to strengthen a scheme to tackle troubled banks. But as they seek to win the approval of EU lawmakers key questions remain. Ciara Sutton reports.

▲ Hide Transcript

View Transcript

Italy's biggest bank is getting smaller. UniCredit is cutting eight and a half thousand jobs after reporting a record 14 billion euro loss. It's all down to bad loans last year - and it's the sort of problem a European banking union is supposed to prevent. UniCredit is likely to be near the top of the regulators list of lenders in line for a health check later this year. European finance ministers say they've now agreed to strengthen a scheme to tackle problem banks. But it still needs official approval and key questions remain - not least, how willing countries will be to help each other tackle problems? CMC's Michael Hewson. (SOUNDBITE) (English) CMC MARKET ANALYST, MICHAEL HEWSON, SAYING: "They haven't dealt with the legacy of the current crisis. It's all very well putting in place measures to deal with the next crisis but you have to deal with the current crisis and at the moment they haven't dealt with that and until such times as they do it's going to be very very difficult to move forward.". The ECB will become chief bank supervisor in November. An agency will also be created to winddown failing banks and a fund set up to cover the cost of cleaning them up. But there are still differences of focus between key euro zone countries. France and Spain see banking union as a step towards sharing risks. Berlin's more interested in creditors - instead of tax payers - picking up any bills. German finance minister Wolfgang Schaeuble. (SOUNDBITE) (German) GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE, SAYING: "It's clear that the bail-in rules apply. They can't be weakened because it makes no sense to constantly talk about the taxpayer no longer having to foot the bill and then to begin not applying the rules about owners and creditors taking the risk at the start." The rules are due to come into force in 2016. But even that isn't certain. Germany would rather they were introduced in the euro zone when the ECB takes on regulation. That would mean less time for struggling banks to get their houses in order ahead of the medical. Either way time to decide is running out. The European Parliament will be disbanded within weeks, ahead of elections in May.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

A step closer to banking union but...

Wednesday, March 12, 2014 - 02:09

Top News »

Retirement »

Back to work- in retirement Back to work- in retirement

Wed, Oct 15, 2014 - (2:09)

Investing 201 »

Bond investors brace for the end of Fed stimulus Bond investors brace for the end of Fed...

Fri, Oct 10, 2014 - (4:03)

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

Money Clip »

Will Apple Pay transform mobile payments? Will Apple Pay transform mobile payments?

Thu, Oct 16, 2014 - (2:45)

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Dance of the northern lights Dance of the northern lights

7:37am EDT - (1:08)

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)