Divisions Emerge Over Banking Union

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Euro-zone policy makers have been in rare harmony over the significance of their plan to build a much lauded banking union in their effort to strengthen Europe’s financial system and prevent future bank troubles from burdening government finances and taxpayers, The Wall Street Journal MoneyBeat blog reported. Most of them also appear united in their support of accelerating plans to bring banks under common supervision and for regulations for winding down failed banks. But as euro-zone finance ministers headed for another round of talks in Brussels Monday, it was clear that a banking union means different things to different nations within the currency bloc. While for some, it’s meant to strengthen supervision mechanisms and regulatory frameworks, for others it’s seen more as a way of pooling together resources and sharing risks. Nearly a year after the plan was first agreed, there are still deep divisions over the shape or the pace at which this banking union will be achieved. Read more. (Subscription required.)