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Stricter regulation: gambling bankers face imprisonment

Stricter regulation: Gambling bankers face imprisonment

The federal cabinet on Wednesday brought a bill on this on the way. In the case of serious offenses, prison sentences of up to five years are envisaged. It is questionable, however, what will become of the plans. The states led by the SPD and the Greens could delay it in view of the new balance of power in the Bundesrat. Finance Minister Wolfgang Schauble (CDU), however, called on the opposition to cooperate.

Larger financial institutions must also prepare for a separation of the risky investment business from the traditional banking business. Customer business is to be shielded when risky transactions reach a certain level. According to Schauble, this would affect 10 to 12 banks. He did not name names. Another point in the legislative package: banks whose collapse could endanger the entire financial system are to draw up their own recovery and resolution plans ("bank wills") in the event of a crisis.

The government is thus drawing further consequences from the 2008/2009 financial crisis, in which banks in Germany also had to be rescued from bankruptcy. Savers’ deposits should be better protected and taxpayers saved from new billion-dollar burdens.