Posted on 03/29/2013 6:39:56 AM PDT by Texas Fossil
Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.
New Zealand has a similar directive, discussed in my last article here, indicating that this isn’t just an emergency measure for troubled Eurozone countries. New Zealand’s Voxy reported on March 19th:
The National Government [is] pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts . . . .
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.
Can They Do That?
Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay.
(Excerpt) Read more at truthdig.com ...
Theft by law?
later read
Does this apply to business/corporate accounts as well?
If it does that will definitely sink the US.
Once corporations can’t deliver food and oil products or payroll because cash flows are reduced the SHTF.
Sounds like a good enough reason to storm the castles of power and burn them to the ground. while inhabited by the crminals/congress
The Global Elite Are Very Clearly Telling Us That They Plan To Raid Our Bank Accounts
By Michael, on March 27th, 2013
Don’t be surprised when the global elite confiscate money from your bank account one day. They are already very clearly telling you that they are going to do it. Dutch Finance Minister Jeroen Dijsselbloem is the president of the Eurogroup - an organization of eurozone finance ministers that was instrumental in putting together the Cyprus “deal” - and he has said publicly that what has just happened in Cyprus will serve as a blueprint for future bank bailouts.
Canada Discusses Forced Depositor Bail-In Procedures for “Too Big To Fail” Banks in 2013 Budget
Inquiring minds in Canada managed to slog through a massive 433 page budget proposal and discovered Depositor Haircut Bail-In Provisions For Systemically Important Banks.
Sure enough. Right on page 145 (PDF page 155) of the Canada Economic Action Plan for 2013 We see ...
“The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail- in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.”
In case you are unfamiliar with bank parlance, deposits are not “assets” they are “liabilities”. A plan that would turn “certain bank liabilities” into regulatory capital is a plan to confiscate deposits.
As noted in Fraudulent Guarantees; Fictional Reserve Lending; Comparison of US to Cyprus; What About New Zealand? I believe guarantees on deposits are inherently fraudulent. But at least the Reserve bank of New Zealand is upfrnot about the situation. Canada is not.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.ca/2013/03/canada-discusses-forced-depositor-bail.html
The big banks continue to gamble with our money knowing they will be protected by the government. It is a win/win situation for them.
Thank you Dodd/Frank for your crony legislation to protect the big banks and funds using ‘derivitives’— under the guise of regulation.
This putative confiscation plan leaves the rest of us with no where to run to and no where to hide our money.
The Mask is off and the face is UGLY.
Theft by law. Trans National Law /sarcasm
The big banks continue to gamble with our money knowing they will be protected by the government. It is a win/win situation for them.
Thank you Dodd/Frank for your crony legislation to protect the big banks and funds using ‘derivitives’— under the guise of regulation.
This putative confiscation plan leaves the rest of us with no where to run to and no where to hide our money.
When they do it here it will be a little slicker. The banks will close for banking holiday for about 5 days and when they re-open there will be a new dollar. It will take 3 old dollars to buy 1 new dollar. So in effect about a 66% devaluation.
They will open up all of the safety deposit boxes during the banking holiday, take out all old dollars and replace them with new dollars. If you are keeping gold or silver in your safety deposit box it might be time to invest in an at home safe and bolt it to the floor.
They are already stealing your money.
It’s called inflation.
As for anyone who may have bought gold:
If you don’t hold it, you don’t own it
& my favorite
If you don’t got it, you don’t get it.
Better idea: any bank declared "too big to fail" should be considered "to big to be allowed to continue to exist", and broken up into smaller pieces.
Same with any company that is bailed out....especially for GM.
You win the qewpie doll!
Very good article, especially if you edit out the little bit of emotional commentary. A somewhat cleaner version is from the Web of Debt blog source:
I noted a very interesting zinger, right at the end, that Obama has not tried to nationalize the mega-banks, because the public would not stand for it... However, were banks indeed to convert depositor savings into bank stock, in the public mind, bank nationalization would become very popular.
And guess what US president, whose last name begins with the letter “O”, would be there, Jihadi-on-the-spot, to nationalize the banks, “Because the people demand it!”
FDIC & BANK OF ENGLAND CREATE RESOLUTION AUTHORITY FOR UNLIMITED CYPRUS-STYLE “BAIL-INS” FOR TBTF BANKS!
The Federal Deposit Insurance Corporation (FDIC) and the Bank of England—together with the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, and the Financial Services Authority— have been working to develop resolution strategies for the failure of globally active, systemically important, financial institutions (SIFIs or G-SIFIs) with significant operations on both sides of the Atlantic.
The goal is to produce resolution strategies that could be implemented for the failure of one or more of the largest financial institutions with extensive activities in our respective jurisdictions. These resolution strategies should maintain systemically important operations and contain threats to financial stability. They should also assign losses to shareholders and unsecured creditors in the group, thereby avoiding the need for a bailout by taxpayers.
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