G20 on Friday named 29 banks so important to the world's financial system that they require more capital and closer surveillance than rivals, plus a detailed plan to allow them to be wound up without taxpayer help if they hit trouble, Reuters reports.
The list of banks drafted by the Financial Stability Board, a regulatory taskforce of the G20, included 17 lenders from Europe, and eight from the United States, including Goldman Sachs , JP Morgan Chase and Citigroup .
The banks will also have to meet resolution planning requirements, dubbed "living wills", by the end of next year. National authorities can extend this requirement to other banks at their discretion, it said.
"The G20's endorsement of these policy measures marks a major milestone," said Mario Draghi, the outgoing chairman of the FSB. "Full and consistent implementation of these policies will ... enable financial institutions at the core of the global system to be resolved without disrupting the real economy and imposing costs on taxpayers."
Due to the crisis in Greece and the risky situation in Italy, Spain and Portugal possible ways of protecting Euro from default became of the Summit’s most important items of agenda.
Grigory Trophimchuk, the vice-president of the Strategic Development Modeling Center, told VK that the situation that the EU finds itself in right now isn’t so different from the one that the Soviet Union had to face when it sponsored many under-developed countries and at the same time had to grant its own citizens free medical care and education. According to the expert, the EU won’t be able to maintain this policy any longer, but instead of helping Eurozone Russia should consider the possibility to use this situation to promote the future Eurasian Union initiated by it.
