Failing banks focus of EU talks

European Union governments and parliamentarians will try to reach a compromise this week on how to wind down failing banks in marathon talks intended to settle who decides to close banks and who picks up the bill.

A deal in the negotiations, set to span three days, would be the final step in a European banking union that would mean one supervisor for all eurozone banks, one set of rules to close or restructure those in trouble and one common pot of money to pay for it.

The union, and the thorough clean-up of banks’ books that will accompany it, is meant to restore banks’ confidence in one another and boost lending to other businesses and households.