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Legislation scan scheduled for next spring includes new powers to dismiss teams management, forcing banks to sell off the coast of all the divisions, to ban the shareholder dividends and require lenders to prepare contingency plans which would be activated if they close to collapse.

EU regulators would also have the power to force a small bank to be taken over by a so-called "bridge Bank" that would run it temporarily until a permanent owner is found.

Michel Barnier, European Commissioner for the markets, unveiled yesterday the financial regulation which is designed to allow the closure of mark lenders without sparking panic plan.

He said the new measures were "most pressing" and could regulatory tools to ensure that the Bank shareholders and creditors contribute to the cost of restructuring.

He said: "the shareholders and creditors be on the front line and not the taxpayer,". "It is too easy as a u.s. creditors ' there is a problem, it is the taxpayer who resume loi.Nous project are completed with whom.

European countries have been committing close to one-third of their economic output equivalent to prevent system Bank reversal.

Mr Barnier said that the EU must avoid the "terrible dilemma" committing to bail the extremely expensive or allowing a catastrophic failure like the collapse of Lehman Brothers Bank, which has caused panic in the market.

He said: "no bank should be too failed".

Of the proposed legislation European banking supervisor newly created would be mandated to act if an international group with cross-border transactions performed on the verge of disintegration, as happened with Fortis, when the Netherlands rushed to protect the operations of the Bank on its territory, leaving Belgium scrambling to support the rest of the group.

The EU plan will require approval by the block 27 member countries as well as the Parliament to become law.

Proposals - especially United Kingdom - critics are complained that he could ask more serious hazards by stripping of national regulators to influence their own financial centers.

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