The European Union is working on plans to set up a rescue fund for ailing banks, capitalized by levies imposed on the lenders, the Sunday Times reported, without saying where it got the information. It will be funded by annual payments from all banks in the euro zone to ensure consumer deposits are guaranteed, and will be backed by cash from the European Union, the European Central Bank or the European Stability Mechanism, the newspaper reported. The fund may also have the power to take over crisis-hit lenders, according to the Sunday Times. (full story)