Exclusive: EU executive sees personal savings used to plug long-term financing gap | Reuters

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BY HUW LONDON

JONES Wed Feb 12,2014 6: 00pm EST Tweet Share this Email Print Cyber attack on bitcoin a bigwarningto currency ' s users Russia says Syria aiddraft couldopen door tomilitary action Exclusive :EU executive sees personal savingsused topluglong term financing gap

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A picture illustration taken withthemultiple exposure function ofthecamerashowsa oneEurocoin anda map of Europe ,January 9,2013. CREDIT:REUTERS / KAIPFAFFENBACH

POLITISPHERE

RELATED NEWS ECB still assessing if lower inflation temporary :Coene

(Reuters ) - The savings of the European

Union ' s 500 million to boost the

citizens could be used to fund long -term investments economy

and help plug the gap leftby banks since the financial document says .

crisis ,an EU

The EU

islooking for ways to wean

the 28 -country bloc from itsheavy reliance on bank ,infrastructure projects and other Meet Janet Yellen ' s Fed posse

financing and find other means investment .

of funding small companies

"The economic

and financial crisishas impaired

the abilityof the financial sector to channel ,seen by

AsJanet Yellen faces Congress for thefirst timeasFed chair ,here ' sa look atherinner circle -four trusted advisers who haveherear andwhosepublic wordswill closely align withherown thinking .Video The farm game ' s new rules

funds to the real economy Reuters .

,in particular long -term investment , " said the document

http://www.reuters.com/article/2014/02/12/us-eu-banks-savings-idUSBREA1B1ZI20140212

2/13/2014 6:34:04 AM

Exclusive: EU executive sees personal savings used to plug long-term financing gap | Reuters

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The Commission

will ask the bloc ' s insurance watchdog

in the second half of this year for

Joe Biden' s 200 mph reason nottorunin2016

advice on a possible draft law "to mobilize more financing ",the document said .

personal pension savings for long -term

Follow Reuters Banks have complained they are hindered from lending to the economy by post -crisisrules

forcing them

to hold much

larger safety cushions of capital and liquidity . Facebook Twitter RSS YouTube

The document

said the "appropriateness " of the EU

capital and liquidityrules for long -term

financing will be reviewed over the next two years ,a process likelyto be scrutinized in the United States and elsewhere to head off any risk of EU banks gaining an unfair advantage .

The EU

executive will also complete

a study by the end of this year on the feasibility of funds could be pooled and

introducing an EU

savings account ,open to individuals whose .

invested in small companies

The Commission

also plans to study this year whether

changes are needed market

to help fund small

businesses by creating a liquid and transparent secondary bonds in the EU .

for trading corporate

Itisalso seeking to revive the securitization market ,which pools loans like mortgages bonds that banks can sellto raise funding for themselves tarnished by the financial crisiswhen or companies .The market

into

was

bonds linked to U . S .home meltdown

loans began defaulting in

2007 ,sparking the broader global markets

over the ensuing two years .

The document

says the Commission

will "take into account possible future increases in the itcomes to finalizinga new rule on

liquidityof a number

of securitization products " when

what assets banks can place in their new liquiditybuffers .This signals a possible loosening of the definition of eligibleassets from the bloc ' s banking watchdog .

The Commission the document

will also "review " how

EU

rules treat covered bonds by the end of this year , by Denmark with itslarge market in bonds

says ,a step that will be welcomed loans .

used by banks to finance home

Other steps to boost financing in the EU many

include possible steps to aid crowdfunding of money

,where

people contribute relativelysmall amounts

to create a sizeable funding pool .

The document revision of EU

said investors and asset managers rules on shareholder

also have a role and itwill propose a

rights to "ensure better disclosure of institutional

investors 'engagement

and voting policies".

More

controversially,the Commission

will consider whether

the use of fairvalue or pricing rule "isappropriate ,in particular

assets at the going rate in a new globally agreed accounting regarding long -term investing business models ".

(Editing by Ruth Pitchford )

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Exclusive: EU executive sees personal savings used to plug long-term financing gap | Reuters

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sabrefencer wrote: sure,strip the banks ,or the people,oftheir hard earned and maybe safe dollars throw them intorisk that s a greatformula

Feb 12,2014 5: 33pm EST - Report as abuse sabrefencer wrote: sure,strip the banks ,or the people,oftheir hard earned and maybe safe dollars throw them intorisk that s a greatformula

Feb 12,2014 5: 33pm EST - Report as abuse

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http://www.reuters.com/article/2014/02/12/us-eu-banks-savings-idUSBREA1B1ZI20140212

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Exclusive: EU executive sees personal savings used to plug long-term financing gap | Reuters

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http://www.reuters.com/article/2014/02/12/us-eu-banks-savings-idUSBREA1B1ZI20140212

2/13/2014 6:34:04 AM