Over at the FT it is revealed that the EU has plans for tackling the bank/Eurozone crisis:

Under the plans, when a bank is judged to be failing and at the point of collapse, regulators will assume emergency powers to sack the management, restructure the bank’s assets and write down unsecured creditors.

EU members will also be required to establish resolution funds, which would be mainly bank funded and could include existing deposit guarantee schemes. National funds would, under normal circumstances, be required to lend to other country’s schemes if necessary.

Other draft changes include setting bail-in implementation for 2018, a later date than expected. Short term debt of less than a month maturity is protected, along with guaranteed deposits.

Regulators are also given some leeway in sparing derivatives counterparties should closing out positions during a debt writedown threaten financial stability or put a clearing house in danger.

Huh? Run that last bit past me again, please.

Regulators are also given some leeway in sparing derivatives counterparties should closing out positions during a debt writedown threaten financial stability or put a clearing house in danger.

Sorry. I still have no idea what you’re talking about.

Part of the problem here is that we mere human beings don’t have the foggiest idea what is happening at the technical heart of this financial crisis and what might make things better.