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New Zealand considers Cyprus-style banking failure solution
RT.com ^ | March 19, 2013 | Google staff

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 country’s 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 ...


TOPICS: Business/Economy; Culture/Society; Front Page News; News/Current Events
KEYWORDS: banking; newzealand; newzealandcyprus; obr; openbankresolution; socialism
Now it begins. This idea was floated by Obama admin a couple of months ago relative to savings and retirement accounts. But, like all democrat plans it will expand in a hurry.

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.

1 posted on 03/19/2013 12:08:27 PM PDT by Baynative
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To: Baynative

When Bill Ayers and the rest of Obama’s pals talked about destroying the middle class...


2 posted on 03/19/2013 12:11:01 PM PDT by Slyfox (The Key to Marxism is Medicine ~ Vladimir Lenin)
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To: Baynative

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.


3 posted on 03/19/2013 12:13:30 PM PDT by Da Coyote
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To: Da Coyote

I know at least one Progressive and they are totally brainwashed Useful Idiots. Their mentality is very ugly.


4 posted on 03/19/2013 12:17:51 PM PDT by laplata
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To: Baynative

Maybe one of the reasons the government has been stockpiling ammunition? Things could get real ugly.


5 posted on 03/19/2013 12:20:08 PM PDT by Parley Baer
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To: Baynative
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.

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.

6 posted on 03/19/2013 12:20:08 PM PDT by oldbrowser (They are marxists, don't call them democrats)
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To: Baynative
Now it begins.

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.

7 posted on 03/19/2013 12:25:14 PM PDT by what's up
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To: Baynative

It’s not a tax or a levy. It’s confiscation. Theft.


8 posted on 03/19/2013 12:52:36 PM PDT by I want the USA back (Liberalism is due to a breakdown of the thinking apparatus.)
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To: Baynative

There was another posting today lamenting the growing Grey/black economy and how it relies on cash transactions.

http://www.freerepublic.com/focus/f-news/2998469/posts

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.


9 posted on 03/19/2013 12:56:42 PM PDT by The Working Man
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To: Baynative

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.


10 posted on 03/19/2013 1:05:36 PM PDT by Mouton (108th MI Group.....68-71)
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To: Baynative

ok do we need a law here to protect us from this?


11 posted on 03/19/2013 1:09:43 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Baynative

This really isn’t what it appears to be.
See:http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10872361

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.


12 posted on 03/19/2013 1:45:25 PM PDT by Rich21IE
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To: Baynative

This is why we need to hang on to our guns.


13 posted on 03/19/2013 2:28:35 PM PDT by bergmeid (I told you so - now pass the ammo.)
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To: what's up
Now it begins.
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.

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.

14 posted on 03/19/2013 3:50:29 PM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: Baynative
The headline is misleading.

The proposal in New Zealand is to charge higher premiums for Deposit Insurance at banks deemed at risk.

15 posted on 03/19/2013 3:52:08 PM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment. -Ludwig von Mises)
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To: Rich21IE

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.


16 posted on 03/19/2013 4:48:28 PM PDT by 1010RD (First, Do No Harm)
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To: Oatka

When we see that a huge international run on the banks does not happen will you come back and admit you were wrong?


17 posted on 03/19/2013 5:16:31 PM PDT by what's up
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To: longtermmemmory
"... need a law here to protect us from this?"

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.

18 posted on 03/19/2013 6:42:37 PM PDT by Baynative (Lord, keep your arm around my shoulder and your hand over my mouth.)
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To: Mouton

That’s because the bank owes them to the depositor. To the bank they are a liability. To the depositor, they are an asset.


19 posted on 03/19/2013 9:06:43 PM PDT by reg45 (Barack 0bama: Implementing class warfare by having no class.)
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To: reg45
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.

20 posted on 03/19/2013 9:21:17 PM PDT by kevao (.)
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To: Slyfox

>>When Bill Ayers and the rest of Obama’s pals talked about destroying the middle class...<<

Under new terms EBT card holders are middle class.

Savers are greedy rich.


21 posted on 03/20/2013 12:55:02 AM PDT by cunning_fish
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To: what's up
When we see that a huge international run on the banks does not happen will you come back and admit you were wrong?

I half expect I will have to do so, as the public constantly surprises me with their escalating stupidity in ignoring all these omens.

22 posted on 03/20/2013 5:19:27 PM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: Baynative

If this keeps up the price of gold & silver will be soaring and bank runs will become common.


23 posted on 03/20/2013 6:36:42 PM PDT by MSF BU (n)
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To: Baynative

It would be tougher to do with a 401K, unless they instituted some type of X% withdrawal fee. To liquidate accounts would cause the stock market to crash. Again though, this would be great news for holders of gold, silver, etc.


24 posted on 03/20/2013 6:38:53 PM PDT by MSF BU (n)
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To: Oatka

Only half? I fully expect that your prediction will come to nothing.


25 posted on 03/20/2013 8:48:44 PM PDT by what's up
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To: MSF BU

Even gold will be hurt if inflation goes through the roof and a gallon of milk and loaf of bread costs a quarter of an ounce.


26 posted on 03/21/2013 8:55:18 AM PDT by Baynative (Lord, keep your arm around my shoulder and your hand over my mouth.)
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To: what's up
Only half? I fully expect that your prediction will come to nothing.

I surely hope so. The greed of the oligarchs is exceeded only by the publics' stupidity - thus the half.

27 posted on 03/21/2013 1:22:12 PM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: Oatka

No need to only hope. You can know with complete certainty that you are weak in the area of prediction.


28 posted on 03/21/2013 1:28:35 PM PDT by what's up
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To: what's up

I’ve been wrong in the timing, not in the direction.

I wish I could be oh-so-sure as you are.


29 posted on 03/21/2013 2:33:40 PM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: Oatka

Yes you were wrong. You were just as sure as me a couple days ago.


30 posted on 03/21/2013 2:42:40 PM PDT by what's up
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To: what's up

Dunno what your problem is by pursuing this. You’re beating this dead horse too much.

See ya.


31 posted on 03/22/2013 8:27:13 AM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: Oatka
It's actually you who keeps coming back in weak attempts to try to justify yourself. You were wrong about Cyprus being some major catalyst. It's small potatoes.
32 posted on 03/22/2013 1:14:38 PM PDT by what's up
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