People living in Europe will rejoice at the news of hearing how the trillion euro financial help packages from banks are no longer a possibility from now on. Citizens had been paying the bill for horrible banking practices, especially when struggling economies came knocking on the door for lending purposes. A new law will force the costs of bank failure bailouts on private sector creditors.
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An End To Taxpayer-Paid Bank Bailout Packages
Whenever a bank or other major financial institution fails, there is usually one and the same reason for this event: failing lenders. Up until this point, the costs for bailout packages to save banks from certain doom were paid by taxpayers, but that will no longer be the case thanks to a new law that went into effect. From now on, private sector creditors will take the financial hit if a bank fails, as the costs of these bailout packages have gotten way out of hand.