EU will require rescued banks to submit a restructuring plan

12/2/2010 | Bloomberg

The EU has announced that banks that received a capital injection from a government or had assets transferred to a "bad bank" will be required to draft a restructuring plan. Lenders in the EU "having recourse to state support in the form of capital or impaired asset measures will have to submit a restructuring plan," according to the European Commission. Only distressed banks had been required to do so. Joaquin Almunia, EU competition commissioner, said the initiative is part of an effort "to prepare a gradual return" to a regularly functioning marketplace.

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