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.
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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.”