Depositor haircut wealth confiscations have just gone from a one-off in Cyprus to the new thing in 2013.
The New Zealand government is reportedly pursuing a policy of Cyprus style depositor haircuts for all future bank failures!

The plan would not limit the haircuts to any percentage, but would steal whatever is necessary from depositors to prop up the failing bank institution: Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.

The rule of law in the entire Western financial world is apparently vaporizing faster than the spent fuel at Fukushima.

2013 Silver Eagles IN STOCK As Low As $2.59 Over Spot at SDBullion!


As New Zealand’s Voxy reports:

The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.


New Zealand’s plan reportedly will affect all savers equally:

“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.

“While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.


Que the bank run panic in New Zealand.

Meanwhile, the FDIC today stated such a thing could never NEVER! happen in the US:
As the FreeBeacon reports:
American officials say the Federal Deposit Insurance Corporation (FDIC), which regulates and insures American bank deposits, does not have the authority under current law to undertake a measure as radical as the one proposed in Cyprus.
“There is no way [the FDIC could implement similar measures to backstop the American banking sector],” said agency spokesman Greg Hernandez. “The FDIC does not claw back any insured deposits.”


2013 Gold Eagles As Low As $74.99 Over Spot At SDBullion.com!

2013 Gold Eagle

  1. How does this NOT end in the biggest bank run in history? Are sheeple really stupid enough to implement this country-by-country?
    You’d need to take actions against paper bill ownership as well as adjust saving interest to prevent a catastrophic bank run. How are banks to reach their Basel III coverage levels? If it’s SO clear that there will not be a last-minute warning or change to opt out…
    Perhaps if they’d go after the well-off but powerless savers, they get something done. Restrict cash bill availability. Block 5-figure international transfers…
    I really wonder how this is all seen as a viable. What part of the puzzle are we not seeing?
    Deposits are based on either trust or greed. Blind faith in banks as safe places, or high interests luring in people wanting to get richer the easy way. Neither conditions exist anymore.

    • Sheeple are really stupid!  I bet many are now racing to put their money into the banks here in the US because it will never happen here.  Funny thing about never and always.  You can ALWAYS count on these rules to be broken.

  2. First, I am in favor of protecting yourself.  With that said, I am trying to think strategically about why these technocrats would pursue this path and I see a few possibilities that I thought one was worthy of sharing:
    There has been an effort to discredit hard money for decades.  What if this is another attempt?  If people flee and nothing happens, it creates one more case of the hard metal people crying wolf.   Another round of discrediting and fuel for claiming us tin-foil-hatters are “crazy”. 

    • When Churchill had Ultra, the machine that decrypted the German’s Enigma code, part of the deal was that they could not act on the intelligence they got b/c it would reveal the existence of Ultra.  But it got too tempting when they found out the details of when the Italian fleet was going to convoy to resupply Rommel in N Africa, they were able to “surprise” the Italian Navy and wipe them out for the war.
      This could be the same thing, no more secrets, they have essentially won at this point.  The middle class will be wiped out.  The only thing to do after that is demonize the stackers and ndaa confiscate and convince the sheeple it was our fault.

    • MOOPST – “This could be the same thing, no more secrets, they have essentially won at this point. The middle class will be wiped out. The only thing to do after that is demonize the stackers and ndaa confiscate and convince the sheeple it was our fault”
      What a SCARY friggin thought – makes me wonder if its too right!

  3. Does NZ not have the power of the printing press?
    Inflation of the money supply is the time honored, subtle way.  Grabbing funds directly is so vulgar and causes even the sheep to take notice.  

    • That’s correct Conax.
      This article does seem to have jumped the gun. Being from Australia, New Zealand is considered our little brother and this is the first time I have heard of anything along those lines.
      I’ll report back if I hear anything in the next couple of days, but using the printing press and inflation would seem a much simpler option if the need arised for New Zealand

  4. first step, depositor haircuts. second step, depositor shaves. third step, depositor brazilian waxes.
    xc skater – I think what we aren’t seeing is that they knew exactly what this would lead to. IF us dummies can guess, they sure can.

  5. Argentinian and Venezuelian devaluations, Cypriot and N.Zealander deposit confiscations. 
    Goldbugs have been announcing this on their soapboxes for a decade. Now goldbugs will be the only ones able to buy soap or boxes.
    And since we dont want to pay for a bar of soap with a bar of gold, we buy silver (eagles and maples)

  6. Meanwhile, the FDIC today stated such a thing could never NEVER! happen in the US:
    As the FreeBeacon reports:
    American officials say the Federal Deposit Insurance Corporation (FDIC), which regulates and insures American bank deposits, does not have the authority under current law to undertake a measure as radical as the one proposed in Cyprus.
    “There is no way [the FDIC could implement similar measures to backstop the American banking sector],” said agency spokesman Greg Hernandez. “The FDIC does not claw back any insured deposits.”

    What comes to mind? Britney Spears Oops I did it again!

    • Britney Spears NEVER comes to mind.  Hmmm… maybe that other idiot… what’s her name… Lohan?  Yeah, she operates about like some in the Gov do.  I keep hoping that she runs into a judge who is not amused by her behavior, locks her up, and then throws away the cell.
      So, who says that it will be the F DICKS doing this?  The current regime in power has shown very little respect for US laws, doing pretty much whatever they want, whenever they want, and to whomever they want.  My confidence in their desire to be bound by US law has been so severely diminished by their recent behavior that it’s really not worth discussing.  If they want to do this, they will.  Period, end of story.  Got gold and silver?

    • Exactly…Just amazes me how they will keep the people enslaved with a ponzi scheme. People failed to wake up and protect themselves. It really amazes me how these so called leaders will lead there people to slaughter for some b.s. that is not real. The Chinese and Russians will be purchasing Gold at an ALARMING Rate! It is happening right now!

    • Hear, hear, Charlie!  Yes, if they really wanted to protect their people rather than their masters, they would do just that… bail out the depositors and tell the banksters to go f*** themselves.  It is more than time that the shareholders in these banks get them under control.  If they do not and the banks go TU anyway, to he|| with them.  Bail out the depositors and the rest can just ESFO&D.  GRRR!

  7. @moopst said…”The only thing to do after that is demonize the stackers and ndaa confiscate and convince the sheeple it was our fault.
    –  –  –
    They may be able to confiscate the contents of safe-deposit boxes.
    But if they come to our homes and try to confiscate our stacks, they will have the same results as if they tried to confiscate our guns.

  8. The concept of confiscating stacks in the US and Canada is laughable. What 5% of people on a good day own precious metals in a physical form?
    Worry about your 401k or bank account. Far easier to access and there is several orders of magnitude more residing in there.
    I should have started long ago but I’m now stacking cash with silver.

  9. This is a worthy news item and very relevant. Thanks for posting. Careful of the over sensationalizing, overbolding, oversizing, bright red highlighting etc. This is unnecessary and creates unnecessary emotion by those who are still learning. As an intelligent reader, I have had just about enough of the sensationalizing, and am about to stick to reading only zerohedge.com. Your blog is really starting to attract the wrong clientele (ala Alex Jones types). So please tone it down. Thank you.

    • Well as an intelligent reader why don’t you just stick to zerohedge.com then, now that you got your PLUG in and stop belittling the posters O! Intelligent One.

  10. After all, the SHEEPLE are the presumably 43% of the Obama minons who get the handouts.  They don’t care about Cyprus, NZ, or the US for that matter.  They have what Obama gives them, what they can steal, and so they are fat-dumb-happy.  When the time runs out for the freebees (AND IT WILL!) then you will have to deal with them coming after your stuff.

  11. FROM Bank of New Zealand Customer Account Manager

    Date    20 March 2013
    Open Bank Resolution
    New Zealand’s Open Bank Resolution policy would facilitate a rapid and orderly resolution of a collapsed bank, and is markedly different from proposals to resolve the banking crisis in Cyprus, Reserve Bank Deputy Governor Grant Spencer said today.
    Mr Spencer said depositors’ money has never been guaranteed, apart from temporary periods, such as under the Deposit Guarantee Scheme from late 2008 to December 2011.
    “If their bank fails, depositors have always needed to understand that deposits are not guaranteed. What OBR does is facilitate a rapid and orderly resolution of a bank failure – it does not change the fact that depositors and other creditor funds are at risk.
    “Fortunately, bank failures in New Zealand are rare. The major banks in New Zealand are amongst the most highly rated banks in the world. We saw their resilience through the Global Financial Crisis.”
    Mr Spencer said the OBR policy bears little resemblance to proposals to resolve the banking crisis in Cyprus.
    He said the alternative to OBR is for the government to bail out banks with taxpayers’ money – which comes with potentially enormous fiscal costs – or to close the failing bank, which comes with large economic costs.
    “The Cyprus situation is very complex, it is a systemic collapse and not a case of just one institution failing. It must be seen in the context of the broader European sovereign debt and banking crisis. Further, the Cyprus banking system is dominated by a large foreign deposit base, from Russia in particular.”
    Mr Spencer said deposit insurance is not a substitute for OBR or any other resolution tool.
    “It is a separate issue altogether. The New Zealand Government has looked hard at deposit insurance schemes and concluded that they blunt the incentives for investors and banks to properly manage risks, and may even increase the chance of bank failure.
    “Deposit insurance is widely used in Europe, including Cyprus, but hasn’t prevented banking failures, as we saw during the Global Financial Crisis.”
    Media Contact: 
    Mike Hannah
    Head of Communications
    Ph 04 4713671, 021 497 418, [email protected]
    Note to editors:
    The Reserve Bank has been consulting for a considerable time with banks to ensure their operating systems could implement an OBR if required. The deadline to have systems in place is 30 June 2013, in order to make OBR a feasible option in the Government’s failure resolution toolkit. Nothing changes for depositors on that date.
    What is the OBR?
    Open Bank Resolution is one option for responding to a bank failure.
    It actually helps depositors because it allows for the bank to reopen the next working day (hence the “open bank” in the title) and means that customers would be able to get full or partial access to their accounts and other banking services, while an appropriate long-term solution to the bank’s failure is identified. Some of their deposits could be frozen, but the remainder would be available and would actually be government guaranteed.
    On the other hand, if the bank went into liquidation, that process could be complex and time-consuming, during which time customers would not have any access to their funds or banking services.
    But in any event, the first losses would be borne by the bank’s shareholders.
    The OBR is not intended to be the only option in the event that a bank gets into difficulty. There may, for example, be circumstances in which a private sector solution is available.
    Q&A on OBR, a background feature and an earlier Bulletin article entitled A Primer on Open Bank Resolution (PDF 745KB) are also available on the Reserve Bank’s website.

    • Two things come immediately to mind.  First, anyone who thinks that pumping money into badly run banks will somehow miraculously transform them into well run banks that never need additional cash infusions at someone else’s expense is smoking crack.  Second, why did not anyone in this missive mention the possibility of letting the bank fail BUT bailing out the depositors?  This would be simultaneously FAR more effective as well as cheaper.  Somehow, they seem to be very conveniently overlooking that possibility as a way to handle such situations.

  12. sensationalism aside, I like the old saying. 
    “The first ones out get the best deal”  
    My plan is to keep as little in the checking account as needed to take care of normal operating capital. Ditto for my wife 
    mid 4 figs is good  Large stack of cash acquired from selling whatever is extraneous stuff.  Lots of phyzz.   If the the little bitty bank we use takes it in the shorts for any reason, ATM shut down we are solid with assets to take care of our needs. 

    • Sounds good to me, AG.  The one and only reason for anyone to ever deal with a bank is that they can be trusted to hold and protect our money.  If they are either unwilling or unable to do that, WTF good are they?  Off-hand, I can’t think of a single reason.
      There was a time when the word bank was synonymous with trust.  Those who run the banks and those who run political interference for them have pretty much done all they could to destroy this connection.  Personally, I can see a world in the future that has no banks and no need for them.  And it is a wonderful place.

  13. Rockets I’m thinking along one line of reasoning. Silver and Gold suppression is like billions of gllaons of water held back by a large dam. There is now a large crack in the dam which has been weakened for several years of bad maintenance and increased pressure.
    Now there’s this crack an unless the dam is patched quickly the crack will widen, the water flow through the crack will weaken the entire structure and like and dam break or avalance, the flow rate will increase exponentially.
    We make be seeing just a little peek of this flow with gold about $1,600.  I called this Cyprus event a Major Squirrel event because is distracts everyone from what is going on. Maybe it will distract the PM manipulators, bring the focus to something even more terrify than losing control of the silver market.  Maybe losing control of the Cyprus derivatives and the consequent Greek defaults and the tens of $ billions of derivative exposure in the guts of JPM.  
    JPM is getting some serious backlash right now according to a news flash on WSJ. The bosses are being hit but a regulator over their mismanagement of the bank. It is a downgrading report what probably has little teeth but it does not look good in light of Dimon and the keelhauling he got for the Whale fiasco.
    JPM needs to get its house in order and even though they skirted the letter of the law with Judge Gumby’s ruling on the silver manipulation, the vultures are circling.  I think someone would like to put a nice scalp on their belt and Dimon might just have to contribute some hair.  Maybe this will give him pause and realize that events could spiral out of control and his JPM with all its BS price suppression just like Bear Sterns.

  14. @AGXIIK: PMs are certainly being dammed up with a mountain of paper. It can’t hold the pressure back for much longer. TPTB must know this. The derivatives are the 800 lb gorilla for the banksters. It could be just as you say, man I just don’t know. There had to be much more to this Cyprus thing that meets the eye. I’m sure that there was something else behind it all. But so far there isn’t enough info to figure it out what. I suppose we’ll find out in time.

  15. Anyone check the KWN story from Jim Sinclair – All hell is breaking loose after Cyprus ?
    He put forward the underside of the consequences of carrying out this theft from the true target of the move, which is the money from the Russian oligarchs who are pretty much former KGB and similar ilk.
    Jim predicts that the theft will vapourise because anyone who expects to get away with their hide intact after screwing this collection of mercinary bastards will undoubtedly find themselves laying in a pool of their own juice.
    Taking this into account it would, in my mind, be more likely that the banksters would try a ploy like this in the USSA, the “Homeland Security” which is rolling out now would be up to the task of seeing off the Columbian Drug Cartel, Mexican Drug and Arms runners and any other piddling Middle East oil producers and third world dictators who may take umbridge with the theft of their billions.
    At a fiat leverage of around 40:1 it only takes 2.5% of depositors to remove their funds for a bank collapse.
    Keep stacking : )

    • “Keep stacking : )”
      Indeed… and use funds from your bank account to do it.  Remember, friends, what we do is not all about how to save incompetent banksters from their own stupidity.  It is about what we can do to protect ourselves and our families from the effects of their incompetence that really matters.

  16. Plus, New Zealand isn’t in Europe which proves that this kind of banking theft can also happen in other countries. With these kind of proposal to solve our financial problems, it shows how desperate the banksters are to keep running the system and it will collapse soon.

Leave a Reply