Madrid to get power to close troubled banks

Article reported that the Spanish government was preparing new legislation in August 2012 to allow the state to intervene in troubled banks and shut down those that refused to draw up adequate survival plans.

The new rules would toughen the powers of the Bank of Spain in its regulation of lenders, as was agreed under the terms of the summer 2012 €100bn rescue deal the eurozone will provide to the Spanish banking system.

ESO: Background information: Spain wins restructuring of bank deal http://www.europeansources.info/record/spain-wins-restructuring-of-bank-deal/

ESO: Background information: Spain bows to ‘bad bank’ idea / Eurozone draws up Spanish aid blueprint / Spain given extra time to cut deficit / Spain pressed to inflict losses on savers http://www.europeansources.info/record/spain-bows-to-bad-bank-idea-eurozone-draws-up-spanish-aid-blueprint-spain-given-extra-time-to-cut-deficit-spain-pressed-to-inflict-losses-on-savers/

El País, 23.8.12: Draft decree to include salary caps for executives at failed banks http://elpais.com/elpais/2012/08/23/inenglish/1345743665_614257.html

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