Posted on 06/12/2012 3:04:26 AM PDT by AAABEST
I don't often put stories in "breaking." I post vanities even less often. Hardly anything surprises me any longer, but I find this absolutely astounding. If you follow the financial threads or the situation in Europe, you really need to read this. Actually anyone with a bank account needs to read this.
I'm going to ask the mods to leave this here, unless they really feel I'm all wet here. I don't, however, believe I am. Follow me here.
BNI (Bank Network Investments) is Italy's oldest and forth largest bank. In other words, it's a biggie.
Anyway, the bank went into receivership last November. as of late last week, without any notice whatsoever to depositors, eureka, BNI suspends all payments and withdrawals. In other words the very first European bank goes on holiday. Furious depositors are left with no way to access their money or pay their bills. They will be on "holiday" (nice term btw) until at least July.
This is quite alarming in its own right on many levels. It's not, however, what is astounding. What's astounding is that there is a total media blackout. NOT A SINGLE ENGLISH SPEAKING ONLINE PERIODICAL MENTIONS THIS. Not one. Nobody. This happened last week, and we're going into Tuesday.
Don't believe me? Here is a Google News search of the terms "BNI" and "Italy" (no quotes).
Nothing. Zero, zilch, nada. Goose egg. Really?
The story is not a hoax, it was confirmed right here on FR at this thread. An astute FReeper, (Kartographer) picked up on it and worked the translation.
It's also on the bank's own website.
The only English speaking source I've been able to find it is right here on Kartographer's barely noticed FR thread, after which I found bits and pieces on a regular (not news) Google search at some other third rate websites.
Here is a site that has several stories on the matter translated from Italian.
Again, this went down last week, today is Tuesday.
Very true; of course the USA does have the ability to print more money, however that doesn’t mean that it should. It would end up with a truly worthless, Zimbabwe-esqe currency, where folks would be buying a loaf of bread for 3 billion dollars.
I mean, I have the ability to dance the hoochie-coochie buck naked on my balcony; that doesn’t mean I have any plans to do so anytime soon.
In regard to the derivatives market, if I were President of the United States, or the head of the Bank of the England or the head of the European Central Bank, or even a head of state somewhere and some representatives of XYZ Global Investments or whatever came to me and said, “You owe us 105 trillion dollars”, I’d likely burst into laughter, give them my best Dr. Evil “I want a gazillion bajillion dollars” impression (and I’ve told my Dr. Evil is quite good) and then tell them to get the f*** out of my office before I have them thrown out, and advise them they can take their derivative certificates, fry them up in some oil along with some onions and peppers, put them in tortillas with a little guacamole and cheddar cheese and........bon appetit.
Credit-Anstalt was an Austrian bank that did the same thing and began the Great depression
I wonder if Gerald Celente of Trends Research Institute has picked up on this bank holiday and started mentioning it in his frequent interviews? I would imagine he would be one of the first one to put it in the spotlight since he’s been forecasting bank holidays would be coming for the last year or so.
LOL...
so that we can print won’t help us deflect losses we incur when europe fails by “protecting” our deposits for 30-60 days...
“Our government is flat broke now; how is it going to bail out millions of depositors with anything but absolutely worthless paper?”
Our “worthless” paper is still worth a lot. Right now people, corporations and government worldwide are loaning us money at 1.6% on a ten year note, which means they agree to be repaid in ten years with our “worthless” paper. They may indeed prove to be foolish, but right now, US treasuries are viewed by most of the world as one of the soundest investments that can be made. Who else can borrow money at such a low rate?
1500 trillion is way too large. Cut that by a factor of 10 and it’s still too large.
Regardless, you’re talking about a nominal number, not cash-at-risk. IF I buy a CDS on $10 million of debt, the nominal worth is $10 million. If there’s an approximate 0% chance the debt goes bad (i.e., US treasuries, where the debt will always be paid with paper we print), the CDS might cost me 10 bp, or 0.1%, so the actual worth of the CDS is $10,000.
Derivatives are all like that - they have a nominal, face value, and then the actual amount they’re really worth, which is usually much lower.
I taked with one of cousins in Italy on Sunday; the panic is real.
I might have to rethink my WTSHTF location...
US treasuries are viewed by most of the world as one of the soundest investments that can be made. Who else can borrow money at such a low rate?
Actually, I think it was noticed but no one knew why or what happened.
Last week we had that quirky pre-opening. Futures were down some -280pts prior to about 6am. Then magically it was righted and those who are late risers claimed those of us who noticed the quirk misread it as Friday’s closing.
There was some very fancy foot-work done here.
As is well known, that's the Monte dei Paschi di Siena S.p.A.
The name, “Creditanstalt” rang a clear bell, and I Googled it, and sure enough like you said, when it went bust, and as per the Wikipedia entry on it, “...It declared bankruptcy on May 11, 1931. It has been said that this event resulted in a global financial crisis and ultimately the bank failures of the Great Depression”.
http://en.wikipedia.org/wiki/Creditanstalt
Interesting. So, what bank will have the dubious honor of being the Creditanstalt of the 21st Century?
Oh, now that’s a keeper. Assume I have “acquired” that and will use it at will henceforth.
Just, damn.
THE PRESS May 31, 2012
On 31 May 2012, the Special Commissioners of Bank Network Investments SpA in Extraordinary Administration (MI), with the approval of the Supervisory Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind, pursuant to art. 74 of Leg. September 1, 1993. 385 (TUB), for the period of one month. The suspension does not include client financial instruments.
The measure was necessary to face the difficult situation of the bank.
Organs extraordinary Bank Network Investments SpA, an intermediary member of the Interbank Deposit Protection Fund, are developing a plan for solving the crisis in order to safeguard clients' rights, provides for the intervention of Consultinvest SIM Group and Bank savings of Ravenna.
Question: Fox News Ticker shows Dow Futures now up 22, after being down 280...why the turn around?
http://www.freerepublic.com/focus/f-news/2891295/posts
You’ll get even less from Japan than you do from the US.
Last week, Germany had a debt sale. The nominal interest rate was negative 5 bp. on 1 year debt. Yes - investors loaned Germany money for a year, knowing they would get back $99.95 for every $100 they loaned.
http://the2012scenario.com/2012/06/first-bank-to-block-all-accounts-italys-bni/First Bank to Block All Accounts; Italy’s BNI
2012 June 9
Could this be the first bank domino to fall in the crumbling of the European and then the world financial markets … allowing NESARA to be ushered in?
The article appears in an Italian Language newspaper. I have used Google translator here to re post the article. Below the article you will see the translated version of the letter from the bank to its customers. The last article was published on the Adiconsum website. Adiconsum, an Italian consumer organization with over 122,000 associates formed in 1987 at the initiative of the ICFTU, to protect consumers rights.
Network Bank stopped payments, customers furious
Lettera 43, June 4, 2012
Stop the transaction until July for the crisis of the institution.
Network Investment Bank has suspended payments, causing great inconvenience to customers.
STOP FOR A MONTH.
The institute, in receivership since last November, announced that on May 31, the commissioners, “with the approval of the Monitoring Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind ‘for a month.
The stop, communicated through the website of the bank, does not include client financial instruments. It was emphasized that “the measure was needed to tackle the difficult situation of the bank.
Angry depositors.
To the rescue – in the few lines we read online – have stepped forward and the group Sim Consultinvest Savings Bank of Ravenna, but in the meantime, depositors are furious . For all spoke Massimo, police in Milan with his wife and two daughters in Messina: “Nobody told me anything and today (June 4), when I went to pay the mechanic, the ATM was not working. Even the credit can do. ‘ MI HAVE REMOVED THE MONEY.” ”Actually,” he added, “I have taken my money. In the book I have only 20 euros in cash and the escrow account where the salary is credited to me, how do I make ends meet? “. And to think that Bank Investment Network has as shareholders the names of the first floor of the financial world: Aviva Banco Popular De Agostini and Sopaf.
“GUESTS OF PERSONS FINANCIALLY ADVANCED.” The customers of Bank Network, financial sources have noted, is composed largely of the “financially sophisticated individuals” able to understand the situation and wait for the definition plan of action by the group and Sim Consultinvest Savings Bank announced the release of Ravenna as special commissioners.
Suspension of Payments:Letter from BNI to its Customers
http://www.bancanetwork.it/content/sospensione-dei-pagamenti
Suspension of Payments
THE PRESS May 31, 2012
On 31 May 2012, the Special Commissioners of Bank Network Investments SpA in Extraordinary Administration (MI), with the approval of the Supervisory Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind, pursuant to art. 74 of Leg. September 1, 1993. 385 (TUB), for the period of one month. The suspension does not include client financial instruments.
The measure was necessary to face the difficult situation of the bank.
Organs extraordinary Bank Network Investments SpA, an intermediary member of the Interbank Deposit Protection Fund, are developing a plan for solving the crisis in order to safeguard clients’ rights, provides for the intervention of Consultinvest SIM Group and Bank savings of Ravenna. The second article is published on the Adiconsum website. Adiconsum is an Italian consumer organization with over 122,000 associates formed in 1987 at the initiative of the ICFTU, to protect consumers rights.
Credit – NO LEVIES – PAYMENTS OF BNI for account holders
BNI depositors unable to make withdrawals / payments, payments of utility bills, mortgage payments, taxes
Thursday, June 7, 2012
Peter Giordano, Adiconsum: “Grave of the Bank of Italy’s attitude that takes action without considering the impact on depositors, and especially on single-income families and pensioners”
Adiconsum Bank of Italy asks for an urgent meeting and the lifting of the Block.
The Bank of Italy authorized the suspension of payments by Bank Network Investments SpA (BNI) without communicating anything to the depositors.
Very serious and unacceptable – says Peter Jordan, Secretary General Adiconsum – the attitude of the Bank of Italy SpA in each BNI, because highly prejudicial to the interests of customers.
Bank of Italy, in fact, after extending the receivership of the bank, thus giving the impression of an imminent rescue, then gave the green light for compulsory winding up, without giving any prior notice to the depositors, leaving them in no condition to perform any type of operation, even basic ones for daily survival, such as withdrawals / payments, utilities payments, rates, taxes.
We must unfortunately note that offensive measures as those adopted to customers BNI – Giordano complaint – not an isolated case. Decisions without taking into account the heavy impact, particularly on savers in possession of a single bank account on which accrediting salary or pension, are not new to Bank of Italy, and also affected depositors of Banca MB.
The attitude of the Bank of Italy – Jordan continues – is bureaucratic and deed and as Adiconsum we asked in a letter sent to the Bank of Italy and the lifting of the BNI and an urgent meeting to define the way in which customers, especially Fixed-income families and pensioners, can perform normal daily operations.
ping
If the govt can't collect taxes nor borrow new money to pay off old debt, it loses everything.
I have worked with bankrupt businesses in the 80’s. All that debt was going to be paid with inflated dollars. Didn't happen that way. The value of the assets dropped to 1/3 value and the lenders got very nervous.
Think about what happened to the Soviet Union.............
Of course, with computers and the internet, there could be silent/invisible bank runs, and no one would know until the govt steps in to clean up the mess.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.