Report wants EU banks to ring-fence risky business

The report also suggests that high-paid bank executives receive part of their compensation in the form of "bail-in instruments" — bonds or shares that would be used to rescue a bank if it were to fail.

The Liikanen group also recommends that failed executives could be banned from the profession for life and encourages bank supervisors to limit executive salaries and bonuses.

The report also encourages the EU to reassess what it considers to be a "safe" investment. That's important because one of the hallmarks of the crisis was that assets once considered safe — like government bonds — became risky. The report specifically mentions safeguards that would protect against bad real estate loans, which have done in Irish and Spanish banks — as well as American ones.

Barnier said he will study the report's conclusions and their impact on banks' lending and competitiveness. He will also seek out comments and criticism on the report from the banking industry before making his own recommendations.