Skip to comments.EU's Rehn: Big depositors could suffer in future bank bailouts under new law
Posted on 04/07/2013 2:27:26 PM PDT by haffast
HELSINKI Big bank depositors could take a hit under planned European Union law if a bank fails, the EU's economic affairs chief Olli Rehn said on Saturday, but noted that Cyprus's bailout model was exceptional.
"Cyprus was a special case ... but the upcoming directive assumes that investor and depositor liability will be carried out in case of a bank restructuring or a wind-down," Rehn, the European Economic and Monetary Affairs Commissioner, said in a TV interview with Finland's national broadcaster YLE.
"But there is a very clear hierarchy, at first the shareholders, then possibly the unprotected investments and deposits. However, the limit of 100,000 euros is sacred, deposits smaller than that are always safe."
The European Commission is currently drafting a directive on bank safety which would incorporate the issue of investor liability in member states' legislation.
ECB President Mario Draghi, at a press conference on Thursday, opened the way for the bank to possibly cut interest rates and to take fresh 'non-standard measures' - steps other than classic rate moves, such as government bond purchases or funding operations like the twin three-year loans it offered banks just over a year ago.
(Excerpt) Read more at foxbusiness.com ...
Wheeew! That makes me feel better.
That’ll prove a boon for US real estate. (in investment type areas) Florida has already seen a glut of EU and South American money.
Socialist confiscation. The wealthy won’t notice if they take a “haircut” from their bank accounts.
As Oli Rehn put, “don’t worry, we’re the EU and we’re here to help.”
Its legalized theft in the name of “austerity.” The banks are now being paid back with their own depositors’ money and the irony isn’t lost on people throughout Europe.
Cyprus was a successful trial balloon and now this offensive against depositors’ assets appears likely to broaden as the EU’s financial crisis spirals out of control.
Right up until 50,000 are sacred, overnight, then ...
It’s almost surreal how “the banks” are now spoken of as these amorphous all powerful god-like entities that must be resuscitated at all costs from financial ruin or utter doom will befall us as a planet, and not as privately owned businesses subject to the same free-market pressures as any other.
Forget the balance. You really only need an allowance of 300 per week. Bankers are now your parent figures and will decide when you deserve a raise.
Aye, and that clindamycin is too pricy fot your age group. Here’s an ibuprofin.
Oh, BTW, nice IRA.
Nothing could be more effective in destroying the European banking system - the absolute cornerstones of which are safety and trust - than any such announcement.
The EU is rapidly disappearing down the hopper.
The only question, at this point, is, “Will America go, too?”
Unfortunately, with Obama at the helm, the answer to that question is only too likely to be a resounding, “YES!”
Burning money at the Altar of the Banking Gods.
Right up there with:
1. We're not going to raise your taxes.
2. You have freedom of speech to criticize government, etc. if you wish.
3. Sign here, we'll put you in the department in the (pick one: Air Force, Army, Navy, Marines) where we told you we would.
4. We're going to cut the deficit.
5. We're going to stop the illegal drug trade.
6. We're going to pass stiffer laws to punish crime.
7. We will NOT take your guns away.
Okay, what next?