BIS

Source: DSNews

In the wake of the Cypriot depositor bail-in, DIESELBOOM let the cat out of the bag that the Cyprus depositor bank bail-in was the template for future bank crises across the Eurozone, a fact we quickly substantiated by uncovering bail-in legislation in the US, UKand Canada.
The banksters’ banksters (aka the BIS) have just officially confirmed what SD readers have known a full 3 months- and have released the official depositor bail-in blueprint!

 

Silver Buffalo Rounds As Low As
$1.19 Over Spot At SDBullion!

 

As Reuters reports, the BIS blueprint officially confirms the banksters plan to pursue the depositor bail-in model for future bank crises:

Central bank forum the Bank for International Settlements laid out a blueprint on Sunday for how to recapitalize a major lender in the event of a failure, seeking to avoid the sort of chaotic ad hoc rescues seen since 2008′s financial crash.


The BIS blueprint (for now at least) wisely restricts depositor haircuts to depositor funds in excess of deposit insurance levels, and would allow the failing bank institution to be re-capitalized by its creditors (ie depositors) over a weekend and reopen immediately on a Monday:

The BIS paper released on Sunday said its plan would allow banks to be recapitalized quickly and easily and would allow authorities to give an unequivocal guarantee that insured depositors would not lose savings.

“(It) proposes a simple recapitalization mechanism that is consistent with the rights of creditors and enables recapitalization of a TBTF bank over a weekend without the use of taxpayers’ money,” the paper said.

Under the template laid out by BIS, which is termed a creditor-funded recapitalization mechanism, the bank would undergo a forced recapitalization by its creditors when it reaches the point of failure.

The ownership of a bank would be transferred to a newly created temporary holding company over a weekend. The bank is then immediately recapitalized by writing off the claims of creditors.

 

While the BIS banksters would like to give the impression their blueprint is a natural bankruptcy resolution, even the Reuters reporters point out that the BIS’ bail-in model does not respect the creditor hierarchy (much less the fact that 99% of depositors would never consider themselves a creditor of the banking institution in which they deposit their funds):

The plan includes elements of other resolution methods, particularly the bail-in of creditors and a holding company resolution.

Europe is pushing ahead with plans to implement a “bail-in” regime that would see bondholders and big depositors take hits.

But the bail-in model does not fully respect the creditor hierarchy, as it can inflict losses on bondholders before shareholders have been fully wiped out, said the BIS report’s authors, Paul Melaschenko and Noel Reynolds.

 

In summary, less than 3 months after we broke the news and warned that The Fed, Bank of England, Bank of Canada, Italy, New Zealand, and essentially the entire Western banking system were planning on scalping depositors during the next banking crisis, the BIS itself has confirmed the fact.

GOT PHYZZ??

Gold Eagles As Low As $59.99 At SDBullion!

Gold Eagle 2

  1. “…even the Reuters reporters point out that the BIS’ bail-in model does not respect the creditor hierarchy (much less the fact that 99% of depositors would never consider themselves a creditor of the banking institution in which they deposit their funds)”
     
     
    It is a matter of considerable gall that ANYONE would EVER consider a depositor as anything but a client and a bank where they have their money deposited as anything but a fiduciary.  As a fiduciary, banks SHOULD be required to do whatever is legal and ethical to protect their clients’ money.  Helping themselves to property that is NOT their own should be absolutely prohibited.  If any of us were to show up at a local bank branch and abscond with bank-held money, we would be branded as a thief.  The bankers should be held to that exact same standard.  If they are unable or unwilling to do that, then they don’t really have anything that I need.
     

    • Mikey,
       
      Even if that is true (I also interpreted as you did), it don’t make it right what they are planning to do, which is pillage customer funds, whether above the FDIC covered deposits or not. Theft is theft, regardless of the apportionment of it.
       
      Another point is this: If you were the FDIC, would you pay up to cover bankster fraud/theft?

    • BOP – given the complete lack of elucidating information in your reply, I don’t expect to be illuminated any time soon.

    • To me, its sounds like the same crap, but now it’s international.  BIS is just another department learning how to steal everyone’s money.  This department is made up of central banks to foster international monetary & financial crap to ween  away (steal) value away from us that has any REAL value.  Look it up under Wikipedia : Bank for International Settlements. 
       
      58 central banksters with the honor to wiggle as much Value away from us by: rape, pillage, destroy, or steal anything that can benefit them  on a international front. 
      The El Presidento is Jaime Caruana from Spain.  And please tell me how good  the PIIGS are doing now?
       
      This is the game of your life. It is not your money, unless you have Silver & Gold it your possession. 
       
       

    • “The El Presidento is Jaime Caruana from Spain.  And please tell me how good  the PIIGS are doing now?”
       
      They’re doing like crap… and they want to share that with everyone else to equalize things out.  :-/
       

  2. Beware this coming October…. one look at the s & p should make the morons playing poker with “paper” run for the hills.  I know I am, don’t be surprised to see a drop into july, a last gasp for air, and then 6 months of a sucking sound you could hear from the moon…

    • Well, the French sure do.  That 75% tax they tried to implement on their wealthy citizens caused all kinds of capital flight to other countries.  Last I heard the French Supreme Court threw this out.  But the politicians were hard at work, trying to develop one that would pass court muster.  Don’t know what the status of that is now, though.

  3. Ranger  less green than friday.  Let us know you take on these charts as they evolve. I’m sure they are important since you watch them carefully.
    If the BIS yanks the TBTF bankers chains, and that includes many of our US banks, and by its relations to the Euro banks, the Fed gets their tail yanked too, then those instructions appear to be pretty strong.  The FDIC has about 33 billion in assets and lines of credit to cover 9 trillion in deposits.  Their coverage is ,35% approx   35 cents on the dollar if my math is correct. I do not know how many deposits are under the FDIC max insurance coverage or what dollar amount total is collectively under the $250,000, but I expect that there is a vast amount of money in FDIC insured deposits that exceeds the $250,000   But the fact of the matter is this. If a large bank fails, and say there is $50 billion in deposits under $250,000 and the bank is rotated into some sort of theftocracy holding company, the bail-ins for the uninsured deposit segment will be massive and the FDIC failure to cover the insured deposits will be catastropic. 
    In my opinion the failure of a large bank in this country or overseas is going to leave all but the smallest deposit high and dry.  Bail in or FDIC bail out; there is just not enough money to cover even one large bank failure.  Good try on the part of the BIS,  They will be partly successful but those in the know will get  a warning in advance. Those not in the know will have been warned many times to get out but they will end up screwed.
    The reduction of the unlimited coverage of the FDIC toits present level of $250,000 last december cost the banks about $130 billion in deposits shifted from banks to Money Market funds.  The bail in in Cyprus cost the peripheral banks about 1.5% of their deposits so the bank runs were not substantial. Most of the funds moved to France, the UK and German.  The Eurozone has not gotten the message yet that the BIS, IMF and ECB mean to take depositors moneys when a bank is going under.  Stock offered in replacement to the accounts stolen will be worth that of Bankia, the Spainish bank that dropped in value 90% in about 1 month.  Many promises were made to the shareholders when they were told to buy the stock to save their deposits   Alas, the bank stock flopped and they lost nearly everything.

    •  
       
      Don’t look now, but lol according to the Mint there were Half a million  ASE sold Monday…….
      U S Mint 2013 Silver Sales Totals 

        

      January
      7,498,000

      February
      3,368,500

      March
      3,356,500

      April
      4,087,000

      May
      3,458,500

      June
      583,500

      2013
      22,352,000

    • “Many promises were made to the shareholders when they were told to buy the stock to save their deposits   Alas, the bank stock flopped and they lost nearly everything.”
       
      And another great idea on paper bites the big one when confronted by reality.  I suppose that the banksters just shrug when these events occur and prepare their next idiotic idea to be tried on the unsuspecting depositors of the world.

  4. The numbers were no more updated last week. They added the last week sales of may to June.
    I was already wondering why they didn’t updated the numbers last week. Now it’s clear they added them to June.

  5. I’m guessing this also applies to Allocated Accounts at brokers? And more interestingly Allocated Physical Gold Accounts in Bank Safe Deposits.
    So MF Global was legitimate!!! And Jim Willie has been banging on about Allocated Gold Accounts that have already vanished.
    Who said Counterparty Risk. Get your popcorn, this could start to get interesting.

  6. BY THE WAY, KING WORLD NEWS HAS A NEW GUY IN THERE NOW SAYING THAT GOLD SET TO ROCKET HIGHER 1000 DOLLARS ANY DAY NOW…LOL..HAHAHAHAH….FOR THE  40TH TIME IN THE LAST TWO YEARS

  7. In summary, less than 3 months after we broke the news and warned that The Fed, Bank of England, Bank of Canada, Italy, New Zealand, and essentially the entire Western banking system were planning on scalping depositors during the next banking crisis, the BIS itself has confirmed the fact.
     
    Actually Zerohedge broke this story.  You should give them the credit instead of misleading your viewers.  Who broke the story isn’t important.  The information is the important part.  This is another example of the alternative media slowly acting like the MSM.  I am finding this trend that these sites are competing for information but it usually comes from one single source.  It’s Zerohedge.  Zerohedge is the new Drudge Report for financial and political news.  This is dangerous simply because it’s coming from one source.  IMO, Zerohedge does a fantastic job of covering the news and breaks down the financial environment.  They link stories from other sources but it’s a validation of credibility if they use your story.  All of these other sites are competing to get their story on Zerohedge.  I have witnessed Chris Duane link and beg viewers on Zerohedge to watch his stuff in the comment sections  It was kinda pathetic.  I understand this is a business.  It’s based on hits and views for advertising and selling products on these sites.  That is totally legit.  What I found lately is this “I broke the story” or “You heard it hear first” or “Come hear to get the information before it breaks.”  Personally, it’s about the content and not about the timing.  If you were a day late but your article breaks down the information that is simply better, it will get attention.  IMO, timing is the least important aspect of the article.  As for the timing for this specific story, it was out a few days ago.  SD was a little late but that’s not important.  It was still good info and worth the read.  I just hope this specific site doesn’t go into this TMZ area of journalism.  Lately, I have found it more sensationalistic with all of these “alert” emails articles.   Just give credit where it’s do.  The credit should have gone to Zerohedge about this specific topic.

  8. There are not going to be any bail-ins, not gonna happen. All the BIS is saying is that bail-ins could be a option, so what?  
    Bail-ins do more harm than good, and the bankers already know this fact. Bail-ins start bank runs, which is the worst case for the bankers.
    Bail-ins would create social chaos, and it’s not worth it. They can just print the money, they don’t need to steal depostor money.
    The threat of bail-ins gets money out of the bank, and into other assets, that is the goal. It’s just a threat, nothing more.
    Gold and silver investors need the bail-outs of the banks to come from printed money, bail-ins are deflationary, another reason they will not happen.
    Ben has bought trillions of MBS to stop the need for bail-ins, he is already bailing out the banks by printing and buying their toxic assets, he is not going to need to ever use bail-ins.  

    • Lol at your certainty. So explain why they needed a bail-in in Cyprus. Surely they should just have printed moar money. I’m curious?

  9. Cyprus is totally a different story, yes they could have printed the money with no issue at all.  They choose to bail-in, they didn’t want to set a precedent of bailing out small Euro nations at this point in the game.   Once in a while, the bankers want to show they have discipline.
    At the end of the day, all developed nations are going to devalue their currencies, and bailing out banks is part of the process, we all know that fact.  Bail-ins are a totally different game,  it serves no purpose.  Investors need confidence in banks, bail-ins will destroy confidence for decades.
    People can live with currency debasement theft, and won’t go nuts when it happens. Hell, over the past 13 years, the dollar has lost plenty of purchasing power, yet no one even cares.
    The US, UK, Euro zone, and Japan are not Cyprus, try pulling a bail-in in Germany,  they wouldn’t want to go there.

    • Sovereign nations CAN print as much of their currency as they wish but those that join a group of nations cannot.  They are bound by the group rules, so cannot just print more money anytime they feel like it.  But then, you knew that.  ;-)
       

  10. I believe that all Cypriot depositors were the initial target of the bail-in, the theft being labelled as a ‘tax’, and no reference to deposit insurance ceilings. It was not until later that the plan was changed to target only depositors holding deposits above the ceiling of the deposit insurance threshold. Is this interpretation of the fiasco correct?
    I am also aware of depositors in some banks in the Philippines, these banks later becoming insolvent and closed, being demonised by the country’s mainstream media and deposit insurer PDIC (Philippine Deposit Insurance Corporation). The reason for this victimisation being that depositors had split their cash into separate batches, each batch falling below the deposit insurance limit, and depositing each batch with a different bank; therefore all deposits assumed to be covered. The problem was that, although each bank was a separate entity, they were all quite closely associated and became insolvent like a stack of falling cards.
    Newspaper articles were run to label the depositors as akin to deposit insurance sharks because of their ‘deposit splitting’ (others may call it prudent) tactic, leeches on the tax payer. This gave the deposit insurer the ability to ensure that depositors would jump through hoops and endure delays of months and often years before any chance of being compensated; many were not. The onus was on the depositor to prove that there was a record of deposit held within the bank, and a certificate of deposit was not proof alone.   
    In summary, I see similar events ahead in the world of deposit insurance.
     

  11. An FYI  The Casey Publishing group noted, about a month after the disclosure of the US and canadian Bail-in rules, that Silver Doctors was the first to release these details.
    Here is my question.  
    When did ‘depositors’ and ‘tax payers’ bifurcate and become completely separate entities, to fleece, excoriate, and identify as a privileged, special or captured class. When did depositors become the convenient target?  After the long suffering tax payers got screwed into mext week to bail out these dumb-as-boxes-of-rocks banks.
     Depositors would almost universally be a group that PAID TAXES on the income and returns maybe months or years BEFORE the cash that was left after the tax nazi got their shares was actually deposited in a bank  Those deposits could be called the sloppy seconds of the tax bastards rape job on tax payers.
    Money is a bank is almost never pre-tax cash.  It is money left over after taxes are paid, or at least that is what I’ve seen for the last 40 years as a tax payer, business owner and depositor using an FDIC insured account. And I will say here and now, I paid a shitload more in taxes than what I had left over to  ‘DEPOSIT’ in some scum sucking bank.
    How is it that the central government, central banks, BIS and TBTF banks decided that the depositor, holding whatever pathetic dribbles of cash left of his of her income, capital gains, dividends, savings, after the tax gang rape, is now the group selected to be the target of a bail in, bail out or whatever convenient label that really says ONE thing  And the thing is this!!
    Hey, motherf******, stick ‘em up.  You got’s money in dis bank, do ya? 
    Well, let me tell you slick, your f***** money is mine now because these stupid frigging bankers couldn’t find their asses with both hands, f****** the bank into the dirt,  and guess what, you get to pay for their dumb asses.
     And what’s more,  you are stupid to live. Here’s why
    We told you we were going to take your money to bail out our homies in this POS bank so hands up s****head, you ass is ours.   You had your chance to get out of Dodge and now you are s*** out of luck, so hand it over.
    See, that’s what a freaking bank robber would say. I been there when that s*** went down.  Today, the central banksters have put on the ski mask, toting the gun and come into the lobby telling everyone to get on the floor.  They are taking over this place and anyone who looks crossways at us will get killed. 
    BTW  you get to guess which of the 7 dwarfs I am today. And it’s not HAPPY!
    The central bankers, ECB, IMF and Fed told Cyprus they were going to give it up to bail out the other idiot bankers.  Now its the BIS telling the TBTF bankers AND central banks that their s*** stinks and they are going to toe the line. If not, they will get flying lessons out of the 30 story building these ghouls,  elites, royals and NWOs meet in to discuss the fate of the world 
    The BIS is the central banker to the central bankers. Those who got’s the money plays the tune.
     That means when they say jump frog jump, Benanke, Dimon, Merkel, Draghi and the rest of these circus clowns say
    “How high, my lords and masters”
    This is the way I see the cranks being yanked and right or wrong, we the long suffering depositors, are going to get frigged when the time is right. You have been warned once again.  Get it or don’t but don’t snivel when you get rotof******
    get the hell of your bank.

    • Lol, AG.  Don’t hold back, man, tell us how you REALLY feel!  :-D
       
      Hell of it is, I agree with every word.  About the time that s**t starts happening, there will be a LOT of people making bank withdrawals using guns instead of slips of paper.  Not recommending this, just saying that it WILL happen when the frustration index reaches the 100 mark.

    • The BIS, US Fed, worldbank, etc are all owned by ONE private entity! The House of Rothchilds. Look it up, you will be truly amazed and angered even more!
       
      These guys are the bloody crooks of the world!

Leave a Reply