The European Commission released a discussion paper that says insolvency laws governing financial institutions fail to adequately deal with major bank failures. Officials said bail-ins are necessary and should be included in bank-resolution legislation. Upcoming discussions about bank-resolution laws will focus on the paper. "This toolbox will ensure that in future, taxpayers no longer bail out the banks. It will reduce moral hazard prevalent in the existing banking system," said Michel Barnier, the EU's internal-market commissioner.