The Swiss Financial Market Supervisory Authority (FINMA) has quietly joined the growing parade of western nations who have quietly re-written banking laws to allow depositor bail-ins upon the next banking crisis.
If Switzerland, the once ultimate safe haven for banking deposits across the world is preparing to confiscate depositors funds, there truly is no protection anywhere other than physical gold and silver in your own possession!

In the event that a bank is failing or where its capitalization is no longer adequate, the Swiss Financial Market Supervisory Authority (“FINMA”) may take measures to improve such bank’s financial viability rather than liquidating it. “Loss absorption” and “bail-in” are important instruments to support any such measures.

 

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The Swiss document begins by advising that the FINMA now has legal authority to confiscate depositor funds, thanks to a revision of the Banking Act of 1934, completed in 2011, as well as the revision of the Bank Insolvency Ordinance completed Nov 1st 2012:

In the event that a bank is failing or where its capitalization is no longer adequate, the Swiss Financial Market
Supervisory Authority (“FINMA”) may take measures to improve such bank’s financial viability rather than
liquidating it. “Loss absorption” and “bail-in” are important instruments to support any such measures. This
is now possible as a result of a revision of the Banking Act of 8 November 1934 (the “Banking Act”) in 2011 and
the taking effect of a revised Bank Insolvency Ordinance on 1 November 2012 (the “Bank Insolvency Ordinance”)
and of a revised Capital Adequacy Ordinance on 1 January 2013 (the “Capital Adequacy Ordinance”).

 

The document states that The Banking Act now grants discretion to FINMA regarding depositor bail-in measures:

RELEVANT PROCEEDINGS
Under the Banking Act, if there are concerns that a bank is
over-indebted or if a bank does not meet liquidity or regulatory
capital requirements, the FINMA may as appropriate:
(i) take protective measures; (ii) initiate bank reorganization
proceedings; or (iii) order the liquidation of the bank
(bankruptcy). The Banking Act grants significant discretion
to FINMA in this context. This includes, inter alia, ordering
a bank moratorium, a maturity postponement or “bail-in”
measures.


And in the scope of bail-in measures, states that bail-ins are to be a measure of last resort (translation: we’ll make this sound unlikely until the banks lose their first franc):

BAIL-IN MEASURES
4.1 Scope
The loss absorption measures described above relate to
capital instruments issued by the bank. In addition, the
revised procedural rules as specified in the secondary legislation
to the Banking Act applicable in a bank reorganization
context (i.e. if FINMA believes that the bank may be successfully
reorganized or if at least part of the business of the failing
bank may be continued), as enacted by FINMA, provide
for the competence of FINMA to convert or write-off other
debt (even in the absence of any contractual provision to that
effect in the arrangement governing such debt) if and to the
extent necessary to allow the bank to meet its regulatory
capital requirements after completion of the reorganization
(“bail-in”).

Such bail-in is designed to be available as a
measure of “last resort” to be taken in the event that the
loss absorption under the capital instruments issued by the
bank is not sufficient to restore the required capitalization of
the failing bank and if the creditors are likely to be better off
than in an immediate insolvency of the bank.

The bail-in must be specified in the reorganization plan,
which must be approved by FINMA and – except for banks
of systemic importance – also by a majority of non-privileged
creditors (calculated on the basis of the claim
amounts). If such approval cannot be obtained, the bank
would be liquidated in bankruptcy proceedings.
In the event that FINMA only applies protective measures,
but does not consider any reorganization measures as necessary
or adequate, a bail-in could not occur as one of such
protective measures.

 

Still under the delusion that the DIESELBOOM Cyprus Template cannot happen here?

GOT PHYZZ???

 

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    • Net  two things come to mind in your post
      1.  Swiss banks must be up to their eyeballs in crap
      2. The ability of bankers to come up with more unique and novel ways to steal money is staggering.  I thought I had seen it all—and I’m an ex banker of all things 
      Of course, as an old school banker, we worked on way to screw the customers on the front side. We didn’t think about doing up the rear.  Now the world’s all about banker sex sandwiches with the depositor as a condiment.  Mayonnaise anyone?

  1. Of course it will be a system wide bail in.  All of these banks have deposits with one another.  As soon as the PIIGS banks start to fail, the “bail in” will include inter bank deposits for other banks across the globe.  As those banks then fail as a result, they will be forced to “bail in” their own depositors, which will include inter bank deposits from other banks. 
    Everything is connected.  As soon as the dominos start to fall, the rest will come quickly.  

  2. There’s a fully fueled  C-140 (can we visualize crammed to the tailgate with fresh new banknotes) gliding in a crash path onto peoples’ ‘highway of life’ and if they don’t soon veer off, exit ramps be damned, they’ll end up as unidentifiable debris strewn in its wake. Nevertheless, NO ONE can say these slime buckets didn’t give folks ‘fair warning’. They’re lighting the thing up like a Vegas casino strip!
     
    The PM ‘smash’ is tantamount to their painting ‘WARNING NO EXIT’ along the guardrails. The fools who ‘follow those orders’ will only end up as crispy smoking hamburger.

  3. The Swiss don’t pay interest on deposits.  I looked into it once in the 80′s.  They charge you.  so wtf?  Banks are making money hand over fist on debit fees and credit interest not to mention monthly service charges for people who don’t maintain a bank’s minimum balance requirements.   The banks have been emboldened by the public’s lack of involvement.  That is why they act this brazen. There are trillionaires on the planet but Forbes says the richest people are billionaires.  It’s time to oppress some trillionaires.  

  4. WTF????
    Thanks for this “NEWS”(?), this is what I(!) was stating in my comment here in the blog more than 3 weeks ago:
    http://silverdoctors.com/canada-includes-bail-in-provision-for-systemically-important-banks-in-2013-budget/
    Quote:
     
    …and if anybody here thinks that Switzerland is safer than the rest of the world; then how about this information:
    Already in August 2012, Swiss government operated FINMA (http://en.wikipedia.org/wiki/Swiss_Financial_Market_Supervisory_Authority) issued an order stating in Art. 49 and Art. 50 exactly the same! An undercapitalized bank risking to become insolvent can alter assets deposited in customer accounts into stock capital of the bank. When I correctly read Art. 50 of the order, the FINMA authority is even entitled to confiscate money deposited in customer accounts. It appears that these actions are ”only” applicable for savings exceeding CHF 100’000.- (about U$ 104’000.-).
    Those able to read a German text can find this unbelievable information in the official FINMA order online: http://www.admin.ch/ch/d/sr/9/952.05.de.pdf
    end of my Quote.
    Took a long time in this ER to make (copy) the diagnosis…
     
     
     

  5. If I remember correctly when the Italian banks were in trouble the wealthy moved their wealth to Switzerland. The Spaniards too. The Greeks as well. Lately the Frenh have been doing the same. What a windfall for the Swiss banks. Now who knows where the money will go to hide if it gets the chance.

    • I do.  It will go to the 5 remaining off-shore banking capitals of the world:
       
      Hong Kong, The Isle of Man, The Cayman Islands, The Cook Islands, and Singapore.  
       
      Of these, I would choose The Cook Islands because they do not divulge client financial information to anyone.  
      The US tried to brow-beat financial info out of them and failed miserably.
       

    • @RocketsRedGlare:
       
      Yes, I know.  I was shocked when the Swiss caved in to US banking data demands a few years ago.  That had to have seriously crippled their banking business with US citizens, who have a LONG history of keeping our private banking affairs PRIVATE.  It has gotten to the point where many foreign banks simply will not accept American clients / depositors anymore.  The US Gov has made serving our off-shore banking needs far more trouble than we are worth.  :-(
       
      Check out the Cook Islands banking system sometime.  It remains what the Swiss once were, except that it is not surrounded by potential invaders.  Europe has pretty much settled down now but in the past has had a series of wars that, at the very least, threatened Switzerland and, of course, any wealth stored in their vaults.
       
       

  6. @WiatingForSilver: Here is some stacker eye candy! 1700 years and the bankers still haven’t got their greedy hands on these. Lucky for me they don’t have much silver in them. Copper with a silver wash. I doubt they will meet the turtles fate. I wasn’t sure they were authentic when I bought them but when I hold them, man I can feel the centuries, sence them you know. If they could speak, what stories they could tell.

  7. Rockets  Very interesting coins in your pictures 
    Copper with silver wash  
    wasn’t that about the time that the Emperors were going into high gear debasing and diluting the roman currency?
    Valerian was right in the middle of the decline and fall of the Empire.  He was very involved in trying to keep the illusion going.  Coinage was sympomatic of an empire in near free fall. Those coins are even more important a piece of history, maybe for that reason

    • Seems like yet another parallel between the Roman and American Empires… frantic attempts to keep the illusion of solvency going by producing ever more money of ever declining value.  This IS a fool’s game but when the end is near, it may well be the ONLY game left.

  8. The bribes from mega corporations deals with governments and tax evasion by businesses – both land up in the Swiss banks, who in turn own the same bribing mega corporations. The corrupt officials, politicians and businessmen have stashed trillions of bribe and unaccounted money into these Swiss banks, which will now be stolen as bail-in money to rescue the cooked-up books to make it look like a failing bank … the TBTF banksters. The corrupt have no right to protest since it is an illegal stash of money and any protest can land them in jail. Both sides of the chess is played by the banksters to swindle all of the corrupt money.

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