The European Union is proposing that regulators within the 27-member bloc be given the authority to limit the products and activities by banks considered too big to fail as a way of preventing another financial crisis. A draft document obtained by Bloomberg states that measures may include “requiring the credit institution to limit its maximum individual and aggregate exposures” and may involve forcing banks to “limit or cease” some of their activities. Under the proposals, regulators would also have statutory power to “either write off subordinated debt or convert it into an equity claim.”

Click here to read the story from Bloomberg.