How Europe can avoid costly taxpayer bank bailouts
By Sheila Bair and Jutta Urpilainen@FortuneMagazineNovember 21, 2013: 7:41 AM ET
Europe is making real progress in unifying its banking system. In October the European Central Bank was granted new authority to supervise the eurozone's large banks, which will enhance confidence and make supervisory standards more consistent. The EU has now turned to the second stage of banking union: creating a process to "resolve" banks when they fail. Called a Single Resolution Mechanism, the process is crucial to ending costly taxpayer bailouts. The EU must get it right.