EU finance ministers fail to agree on bank rules

Posted: 06/21/13 at 10:05 pm EDT

LUXEMBOURG (AP) -- A top official says European Union finance ministers have failed to secure an agreement on how best to downsize or close banks without calling on taxpayers to bail out ailing lenders.

French Finance Minister Pierre Moscovici says despite negotiations until the wee hours of Saturday ministers remained at odds over key points and will reconvene for an extraordinary session on Wednesday.

The ministers sought to decide on new rules determining the order in which investors and creditors would have to pay for bank restructurings.

Some countries sought greater flexibility in applying the rules. Others opposed that because they fear it would create new imbalances between the bloc's weaker and stronger economies.

Moscovici voiced confidence that ministers will reach an agreement next week.

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