bail-inWhen the 2nd instance of bail-in language being implemented was discovered in New Zealand, we correctly stated that a major policy shift had been undertaken by the Western world’s central banksters, and that the use of depositor funds to cover future bank losses and failures would occur throughout the rest of the Eurozone and likely the US. 

Even we never suspected however that Western Central banksters would be brazen enough to attempt to literally confiscate depositor funds in order to ensure their own salaries and bonuses.  
If last week’s speech (& subsequently published by the BIS) given by the Governor of the Bank of Finland and Chairman of the High-level Expert Group on the structure of the EU banking sector is any indication, using depositor funds to guarantee their own salaries is exactly what Western banksters have in mind…

Excerpt from the BIS paper:
Bail-in lies at the core of tackling the “too-big-to-fail” problem as it improves the loss absorbency of banks, ensures that investors rather than taxpayers take on the responsibility for losses in the face of resolution, and further enhances creditors’ incentives to monitor banks. In the High-level Expert Group we foresaw a two tier system for the bailing in of investors in bank debt. The bail-in process which is outlined by the Commission in the proposed Bank Recovery and Resolution Directive plays a key role in ensuring orderly restructuring or winding-up of banks without the prolonged bankruptcy proceedings.
We proposed that there would be an additional layer of designated bail-in instruments to further improve the loss-absorption capacity of banks. We believed that this would best combine loss absorbency and market discipline with legal certainty and the stability of markets. The designated bail-in instruments would have clear pre-specified terms and holding restrictions, which would prevent other banks from holding these debt instruments.
In addition, we proposed that the governance and control of banks ought to be strengthened further. Particular attention ought to be given to the ability of management and boards to run large and complex banks, the powers of the risk management function and the quality, comparability and transparency of risk disclosure, the possibility to use designated bail-in instruments in remuneration schemes, and the appropriateness of imposing caps on variable as well as overall compensation.
Read that last sentence again.   That’s right, the EU banksters are OPENLY DISCUSSING the future use of bail-ins for remuneration of bank employees (total bankster compensation)!The term Golden Parachute just took on entirely new meaning.Got PHYZZ??

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  1. And this is a surprise?  In 2009 bankers received tens of billions in bonuses from the $700 billion in TARP Funds.  TBTF whined and sniveled to the Fed to ‘save them’  ‘The world will end as we know’ cried John Paulson.  Congress and Bush bent over and spread ‘em.  We had to provide the KY
    It’s pretty obvious the much abused tax payer has bailout ennui.  So the remuneration-based bail-ins is just the next  logical step.  From there are the pensions.  Therefore pensions may have a slight reprieve from confiscation.  There’s about $10 trillion in bank deposits to expropriate before pensions are in the gunsights.
      All this reminds me of a limerick
    There once was a whore from Peru
    Who filled up her privates with  glue
    She said with a grin
    If they pay to get in
    They’ll pay to get out of there too
    Fill in the word ‘whore’ with banker.   Comparing a hooker with a banker demeans the hooker. My apologies to the ladies of the evening.

  2. Shinanigans call for shinanigans.  Yesterday I looked into options for my 401K.  Here is what I did, and followed with what I might do next.  First, I stopped all of my personal contribution and left it up to the profits of the company to invest in my future.  Second, I went through the list of options and changed it to the top percentage Vanguard fund.  (it is doing 4% better than the one I was in).  This is sounding pretty good so far.  After I made my changes, I thought…well, I cant quit in order to get my money….before it gets stolen… how about taking out a loan against it?  I cant get a loan for the entire amount but I can get a large enough portion to make it worth while to steal it myself, rather than a future bankster heist.  I only have to pay 4% interest on the loan.  And the loan payment is less than the deduction I was having deducted… Smart move?  Dumb move?  Should this be a national battle cry to all 401K participants?

    • FMTB  Sounds like a good plan   What will you invest the funds in?  What percentage of the total 401k balance can you extract?  can you take some smaller distributions without undue penalties?  What is your age and will that factor into the decision.   Investing into Sprotts PSLV, gold and platinum trust seems to be sound as he actually has the metals stocked in the vaults.  Can you be forced to repay the loan if the fine print requires it?   Did I miss anything in this plan.  Who else has done this.  Protecting part of the 401k asset base would be practical since we know the plans for pensions and deposits.

    • AG, thank you for the additional questions.  I am definitely into the prepping items.  It might have been one of your posts I read yesterday about prepping, it sounds like I have been doing fairly well, other than it is only family members that I know that are doing this as well.  The only thing I am really lacking is a solar power generator.  That would be my first investment.  The percent if I remember correctly is about 50% that is loanable.  The loan has no penalties.  I would have to talk to a planner to ask about early distrubutions.  I am in my mid 50′s and is not a factor as far as retirement requirements are concerned.  I have heard about Sprotts PSLV but havent looked into it.  But this I will have to look into. 

    • FMTB,
      You hit the nail on the head! I have no savings and no spare cash. I just paid off my 401k loan and took a new one of about $10k which should be available next week. I am going to put $8k into gold/silver. This will be my SHTF stash, for emergencies. Slowly building up food supplies for 1 month. 

    • Regarding a 401K loan…  this money has to be paid back on a schedule, typically in 5 years.  If the employee leaves the company, the company can demand IMMEDIATE repayment of a 401K loan.  When the employee repays the 401K loan, s/he does so with after tax money, so the loan amount gets double taxed… once when earned and once when withdrawn.
      In spite of these potential problems, it still might be to the benefit of the 401K plan owner to borrow the funds out of the plan.  It will be a very tricky operation, however, in terms of whether or not this fits their individual financial situation.  I would urge anyone contemplating a move of this kind to be very cautious and to seek the advice of a fee-only financial planner BEFORE doing something that has serious and permanent consequences in their financial future.

  3. From the top down it seems like a slight majority is out to work the rest of the working people. From bankers to wankers most people seem to be working some game on others.  I can deal with the bankers.  

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