Sept. 28 (Bloomberg) -- European Union Economic and Monetary Affairs Commissioner Olli Rehn said the EU has no plan to force banks to separate their commercial and investment operations.
“No regulatory initiatives are foreseen in order to mandate the separation of commercial and investment banking,” Rehn said in a written response to a question from the European Parliament.
“The commission is taking targeted legislative measures in order to ensure that all banks have sufficient amounts of capital, are properly supervised, and -– importantly -– are allowed to fail without recourse to public money, by putting in place an EU framework for bank crisis prevention and bank resolution, applicable to all banks, regardless of the focus of their activities,” Rehn said in his response, which is dated Sept. 27.
“The numerous regulatory reform measures currently being pursued should restore confidence and eventually provide for greater long-term financial stability,” he said.
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