EU leaders inch towards finalizing rules to close banks

Top leaders of the European Union (EU) on Thursday reconfirmed reaching an agreement on single resolution mechanism (SRM) at EU summit, paving the way for closing failed banks without weighing on taxpayers. "We are very close to a final formal decision on Single Resolution Mechanism. It's supported politically by European Council," European Commission President Barroso said at press conference after the summit meeting. He called it a " real breakthrough" and also expressed wish to have the mechanism approved before EU general's election in May. One day earlier, EU finance ministers reached an agreement on SRM ,together with a single supervisory mechanism (SSM) and a single deposit guarantee mechanism, constitutes three pillars of the eurozone's planned banking union for cutting the "vicious circle" between sovereign debt crisis and banking crisis, and make sure taxpayers won't foot the bill for future bank bailouts.