The European Commission proposed on Wednesday creating an agency to salvage or shut failed banks, but the absence of an immediate backstop fund to pay for a clean-up means it may struggle to do its job.
Working in tandem with the European Central Bank as supervisor, the new authority is supposed to wind down or revamp banks in trouble. It constitutes the second pillar of a 'banking union' meant to galvanize the euro zone's response to the crisis.
Read more: Europe tempers power of agency to shut troubled banks - Yahoo! News