A transatlantic banking watchdog would protect American and British taxpayers from bailing out banks which are too big to fail, under new plans.
Instead shareholders and creditors on both sides of the Atlantic would be forced to take the losses in the event of another banking crash the Daily Mail reports. It marks a significant shift from the situation in which UK taxpayers stumped up billions to rescue stricken lenders such as Royal Bank of Scotland and Lloyds Banking Group. It was also forced to bail out lenders Northern Rock, Bradford & Bingley and Alliance & Leicester. Officials in the United Kingdom and United States have now drawn up plans to ensure that failed banks can be dealt with in future without taxpayer funds....
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