Who Is Driving The Bail-In Regime?
It is revealing to examine the genesis and evolution of the centrally planned bail-in regime as discussed by central banks and international policymakers, since it highlights that the planning and preparation for a global bank “Bail-In Regime” has been on-going internationally at a high level for a number of years now, primarily under the auspices of the Financial Stability Board (FSB).
According to the FSB report, the implementation of the bail-ins should be undertaken by a resolution authority in each country with statutory resolution powers to enforce bail-ins.
Following on from the release of the FSB Key Attributes report in 2011, it became apparent that national monetary authorities and regulators had been actively working for some time on national bail-in preparedness and their own versions of the Key Attributes.
Who Is Driving The Bail-In Regime?
Given that the euro area is moving toward a pro-forma inclusion of the depositors bail-ins in the standard toolbox for dealing with the financially distressed national banking systems, the case for gradual cost-minimising increase in long term share of these instruments in individual investors portfolios is being made not only by the market forces, but also by regulatory changes.
Contrary to the short-term signals in the spot markets, gold and other precious metals role in delivering long-term risk management opportunities and tail risks hedging is becoming more important as the immediate volatility and short-term risks recede. [Read more...]
The era of bondholder bailouts is ending and that of depositor bail-in is coming.
The changing financial landscape post crisis poses challenges to savers and investors globally. It is important we consider how savings and investments can be protected.
Bail-ins are a risk in the coming years and yet there is a lack of appreciation of this risk as there was a lack of appreciation of the risks posed by property bubbles and the global debt crisis.
It will take a number of years for the final configuration of the new financial order to become clear. This means that there are difficulties inherent in selecting appropriate investments when the ultimate outcome is unclear. Apart from that, what we do know at present is that there are straws in the wind that should concern savers. [Read more...]
A major conference on the future of banking yesterday heard contributions on a European banking union which is being negotiated by Eurozone finance ministers. One of the aspects of that union will be a ‘bail-in’ of deposits when banks fail in the future. Michael Noonan, Ireland’s Minister for Finance confirmed yesterday that bail-ins or deposit confiscation will be used. [Read more...]
Did you actually believe that they were not going to use the precedent that they set in Cyprus? On Thursday, EU finance ministers agreed to a shocking new plan that will make every bank account in Europe vulnerable to Cyprus-style bail-ins. In other words, the wealth confiscation that we just witnessed in Cyprus will now be used as a template for future bank failures all over Europe. That means that if you have a bank account in Europe, you could wake up some morning and every penny in that account over 100,000 euros could be gone. That is exactly what happened in Cyprus, and now EU officials plan to do the same thing all over Europe. For quite a while EU officials insisted that Cyprus was a “special case”, but now we see that was a lie. International outrage over what happened in Cyprus has died down, and now they are pushing forward with what they probably had planned all along. But why have they chosen this specific moment to implement such a plan? Are they anticipating that we will see a wave of bank failures soon? Do the banksters know something that they aren’t telling us? [Read more...]
What I strongly wish you do is free your assets from the balance sheets of the entity with which you are dealing in the entire Western world financial system, without exceptions. The official written evidence is overwhelming that in a systemic crisis of size depositors as unsecured creditors of a bank or broker by the simple act of having an account are lenders to that institution. In fact of law, the depositor, you, are very junior lenders as they are unsecured. You need to consider yourself as an informed Cypriot knowing that bail-in was coming a few months before it occurred. What would you do? My feeling is you would have done a lot more than just the thinking about it that you are doing now. [Read more...]
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.
We the long suffering depositors, are going to get pillaged when the time is right. You have been warned once again. Get it or don’t but don’t snivel when you get scalped!
Get the hell of your bank! [Read more...]
In the wake of Monday’s news that Cyprus depositors have official been scalped by the ECB and IMF, Jim Sinclair has sent an email alert to subscribers warning that If you do not exit the system now, you will not be able to exit the system, and that Capital controls and bail-ins will grow and reach your home.
Sinclair warns that DIESELBOOM’S depositor haircut precedent for bank failures is coming to the entire Western banking system, a fact that we have repeatedly driven home here at SD upon uncovering bail-in legislation in Italy, Canada, Switzerland, the UK, and the US.
Sinclair’s full alert on the Cyprus bail-in and on exiting the Western banking system NOW is below: [Read more...]
In this tremendous interview with our friend Eric Sprott, Patrick MontesDeOca chats with the CEO of Sprott Asset management with $10 billion under management.
In this interview Eric gives us his insight and wisdom as it relates to Cyprus as the “Black Swan”,and how it could trigger major bank runs globally. Metals shorts are in for a rude awakening!
Sprott discusses the ongoing collapse and how the COMEX is easily manipulated and not reflective of actual supply and demand.
A breaking Reuters report has revealed that to what should come as no surprise to SD readers, buried in the Troika’s bailout of Cyprus, is a stipulation that Cyprus hand over 10 tons (€400 million) in gold reserves to the ECB/IMF
Like every other engineered crisis over the past 10 years, it was all about the gold. [Read more...]
March and April 2013 may go down in history as the tipping point for the western financial system.
The veil of banker honesty has been lifted. The EU/IMF/ECB will do whatever is necessary to support the banks, even if it means they will confiscate (tax, steal, bail-in) customer deposits.
Customer deposits are NOT assets held in the bank for safe-keeping, but are liabilities of the bank and are not guaranteed to be made whole.
Billions of dollars were removed prior to the Cyprus freeze, so insiders clearly knew in advance of the ordinary depositors (see below). There is no “level playing field” when billions of dollars/euros are in play.
According to Jeroen Dijsselbloem, Dutch finance minister and Euro Group President, this is “the template for any future bank bailouts.” In other words, your deposits are considerably less safe than you thought. Your bank could fail, and your deposits might be used to compensate for derivative losses or other losses that the bank incurred.
To describe the events in Cyprus and their relevance to gold, we can start with the analogy of a peaceful, self-satisfied Western investor asleep in a dark room. He has had trouble sleeping lately because he is starting to become more concerned about the safety of his personal wealth. He is unaware that he is sharing his room with three large elephants. They come each night, but remain hidden by the darkness. He awakens for a moment and lights a candle. Suddenly the room is illuminated and he sees the three beasts. The vision terrifies him, so he races to blow out the candle hoping to forget what he saw. Of course, once the light shines on truth it is difficult to return to a state of ignorance.
The events in Cyprus had the effect of turning on the lights, if only for a moment, before the financial media and the world’s central bankers began a blitzkrieg campaign of denying the truth that was briefly exposed. [Read more...]
Submitted by Bill Holter:
Imagine that 2 weeks ago you were a Cypriot and faced losing some or all of your bank balances, what would you have thought? I ask you this question because chances are…you are not a Cypriot and you haven’t had your life savings “locked up”…yet. You see, whether you know it or want to believe it, we will “all be Cypriots” sooner or later. Pooh pooh me, stick your head in the sand or send me nasty e-mails, MATHEMATICALLY the entire world WILL become Cyprus sooner or later. Mathematically we are on a crash course with a global debt/currency crisis of epic proportions. [Read more...]
Face it folks, the die is cast. Bankers have shown their true colors. They are no different that robber barons of days past. They will steal your money through interest, fees, penalties, foreclosures and if those fail, they will steal your assets because you are a convenient and conveniently foolish cash sheep waiting to be fleeced.
The modern financial system has become a Currency Roach Motel. Your money checks in but it doesn’t check out.
Canada Includes Depositor Haircut Bail-In Provision For Systemically Important Banks in 2013 Budget!
*BREAKING SD ALERT
Just as DieselBOOM accidentally admitted Monday, it appears that the Cypriot bail-in is anything but a one-off event, and is in fact the new collapse template for the entire Western banking system, and not just the ECB/ Eurozone!
SD has been alerted to an alarming provision that has been buried deep inside the official 2013 Canadian Budget that will result in depositor haircut bail-ins jumping to this side of the pond during the next bank crisis!
Titled ECONOMIC ACTION PLAN 2013 and tabled in the House of Commons by Minster of Finance James Flaherty on March 21st, the official 2013 Canadian budget contains an explicit provision that Canada will pursue the bail-in model for systemically important banks for future bank failures! [Read more...]