Barroso’s eurozone crisis plan could stop bank dividends

• Payouts would be put on hold for undercapitalised institutions • EC president softens up bondholders up for losses of 30% Europe’s biggest banks would be barred from paying out dividends and bonuses if they are forced to raise their capital reserves to withstand future shocks, under plans put forward by the European commission to resolve the debt crisis. At the same time, banks are being softened up by Brussels to accept “haircuts”, or losses, of 30 on their holdings of Greek debt rather than the current 21%. Senior commission officials are also examining ways to boost the size of the main bailout fund, the European financial stability facility (EFSF), closer to the €2

Posted by on October 13, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.