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Living will breathing room for European banks: The U.S. Federal Reserve and the Federal Deposit Insurance Corp. gave Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG and UBS Group AG until July 2017 to submit their resolution plans, or "living wills," indicating how they could be wound up without triggering a bailout or a crisis.
* The European Commission is unlikely to extend global total loss-absorbing capacity, or TLAC, requirement beyond the top tier of international institutions, an EU official tells Reuters. Such a decision would mean that medium-sized lenders such as Commerzbank AG and Lloyds Banking Group Plc will be exempted from the global bank-failure rules.
* The ECB expects low demand from banks for its latest targeted longer-term refinancing operations as banks seem reluctant to take on much new debt and credit demand remains subdued, insiders tell Reuters.
* The ECB kicked off its corporate sector bond purchase program yesterday and bought bonds from telecommunications, insurance and utility companies, insiders tell The Wall Street Journal.
* David Folkerts-Landau, chief economist at Deutsche Bank, criticized the ECB's bond-buying program, calling it a "mistake" with "substantial side effects," Frankfurter Allgemeine reports. He called for a reversal of the ECB's monetary policy, saying the central bank had "lost the plot" and risked tearing the eurozone apart for the sake of "short-term financial stability" which would "contribute to the growth of populist or extremist politics."
* Danièle Nouy, head of the ECB's Single Supervisory Mechanism, said the central bank will soon publish a set of recommendations for banks to cut their nonperforming loans and will hold dialogues with lenders on how to address their legacy issues, Reuters notes. The ECB will open the proposals to public consultation before adopting them as guidelines.
* ECB Governing Council member Yannis Stournarassaid a possible British exit from the EU, along with a lack of cohesion among member states regarding banking union, could undermine the eurozone's economic recovery, Reuters writes. Stournarasadded that the bloc needs to find a balance between managing risk and enabling investment to achieve a sustainable recovery.
* Meanwhile, ECB Executive Board memberBenoît Coeuré said the central bank is ready to help stabilize financial markets "especially by providing liquidity" should Britain vote to sever links with...