Skip to comments.New Zealand considers Cyprus-style banking failure solution
Posted on 03/19/2013 12:08:27 PM PDT by Baynative
New Zealand depositors could face a Cyprus-style tax on their bank accounts, as the government is planning to impose a similar strategy on its banks warns the country's Green Party.
New Zealand is facing a similar bank failure to Cyprus, is likely to adopt open bank resolution (OBR), which will see small depositors lose part their savings in favour of a big bank bailout, Green Party co-leader Russel Norman said. The countrys Finance Minister Bill English supports the open bank resolution.
"Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand," said Norman, adding that the Reserve Bank is in the "final stages" of implementing an OBR system.
New Zealand banks depositors will have their savings cut by a certain percentage needed to keep their bank afloat.
(Excerpt) Read more at rt.com ...
Wait until the nation figures out that the $85Billion Obama has printed every month under the smoke and mirrors of QE3 has taken so much value out of the dollar that it is only holding value based on people believing it has value.
If you are looking at the value of your 401(k) learn to think of it as worth about 70% of the number you are seeing.
When Bill Ayers and the rest of Obama’s pals talked about destroying the middle class...
Were I to want to start a revolution throughout the world, there is no better plan than this.
Make our day, progressives.
I can only hope that guillotine manufacturers can keep up.
And, if it is indeed a world-wide revolution, there will be nowhere for bankeers and progressives to hide.
And no lack of volunteers to pull the handles.
I know at least one Progressive and they are totally brainwashed Useful Idiots. Their mentality is very ugly.
Maybe one of the reasons the government has been stockpiling ammunition? Things could get real ugly.
Remember Kirchner in South America nationalizing all of the retirement accounts so the government could administer them on a more equitable basis?
I expect at some point we will all be wards of the state.
This begins nothing.
The only thing that begins is people over in Europe will be more cautious in asking for bailouts now which is why the EU did this.
It’s not a tax or a levy. It’s confiscation. Theft.
There was another posting today lamenting the growing Grey/black economy and how it relies on cash transactions.
I’m not really sure if what we are seeing is greed, desperation of governments and the financial elites or blatant disregard for those who actually follow the rules and laws of society and nations.
What I think will happen in the long run is that we are going to see a long period of political upheavals worldwide. I’m pessimistic over any chance of democratic/republic style governments being the norm. It’ll just be more dictator/strong-man style governments leading into a new dark age for humanity.
Deposits are carried on the banks books as liabilities. This is just an obama styled rescue they dreamed up for GM and Chrysler bondholders, last in line boys.
ok do we need a law here to protect us from this?
This really isn’t what it appears to be.
NZ ended their FDIC program in 2011 and are looking to replace it with a new program called Open Bank Resolution to deal with a potential bank failure. The “potential” for a NZ bank failure is extremely low. Their system is nothing like the EU. Their “Reserve Bank” is much like our Federal Reserve system. Unlike the US however, they’re system is far more conservative and more conservatively run than the US or even Britain.
This is why we need to hang on to our guns.
Baloney. People all over Europe will begin withdrawing funds as a CYA. The political idiots are going to start an international run on the banks. Someone said that it was foolish to start one, but once begun, it was even more foolish not to participate.
The writing is on the wall for those whoo see, and will open up an account in the Bank of the Mattress.
The proposal in New Zealand is to charge higher premiums for Deposit Insurance at banks deemed at risk.
Good call, this is the leftists stirring the pot. This doesn’t have the negative incentives of FDIC insurance.
If they couple it with transparency and rating requirements that are public it should work fine. No bank would want to have a run.
When we see that a huge international run on the banks does not happen will you come back and admit you were wrong?
I really don't know what we need to protect us. But expecting a law to help is asinine, in my opinion. My take is we'd all better learn what we feel comfortable with to protect our own futures. What we hear from our own government is highly suspect and we certainly have no one in the media we can trust to do any serious digging.
That’s because the bank owes them to the depositor. To the bank they are a liability. To the depositor, they are an asset.
Seems we're heading toward a world in which the biggest liability of all is having assets.