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EU wants bank fund to pay for future collapses

THE European Union is considering making banks pay for an emergency wind-up fund in case one of them goes bust, in an attempt to avert another Lehman-style crisis.

Michael Barnier, the man in charge of new European financial regulation, told a conference of financial watchdogs in Brussels that the banks should foot the bill for a future crisis in their industry.

He said: "I favour the 'polluter pays' principle.

"The financial institutions are going to have to be called upon to contribute to such a fund. Why should our citizens be footing the bill?

"The financial institutions are going to have to be called upon to contribute to such a fund.

"We have to be clear about a resolution fund. We have to have a regime that aims at restructuring the banks."

However, Britain has indicated it would be against any central fund to bail out ailing European lenders.