Bail-ins

Ireland Exits Troika Bailout To Prepare For Bail-ins:

Public Banking Forum Ireland

Ireland Exits Troika Bailout To Prepare For Bail-ins: Nothings Changed & Don’t Believe Everything That You’re Told.

Reggie Middelton Friday, 13 December 2013

BoomBustBlog.com

Who Is Reggie Middleton & What Is BoomBustBlog?

Reggie predicted the of collapse of Bear Stearns and Lehman Brothers well in advance.

From Bail-Outs to Bail-Ins: Risks and Ramifications

Written By Mark O’ Byrne 
Mark O’Byrne is the founder of GoldCore and is the Head of Research and Executive Director.

 

Introduction by Dr Brian Lucey

Brian Lucey is Professor of Finance at the School of Business at Trinity College Dublin.

Read full Bail-in Report Here

“All short term panaceas have not addressed the root cause of the global debt crisis – too much debt”

“A bail-in is when regulators or governments have statutory powers to restructure the liabilities of a distressed financial institution and impose losses on both bondholders and depositors”

“In other words, the depositor is a lender who has loaned their deposit to the bank. If the bank became insolvent, depositors would have to line up with the other creditors in the hierarchy of claims and wait to see if their money was returned”

Conclusion 

”Bail-in is now the rule,” admitted the Irish finance minister Michael Noonan.

Yet depositors both in the EU and internationally have yet to appreciate the ramifications and risks of this important development and the stealth bail-in regimes developing globally.

“Cyprus and the real risk of bail-ins in many countries in the coming years shows that even bank deposits are no longer completely safe. We have outlined in this document that there are plans internationally for so called ‘bail-ins’ or deposit confiscation in banks, should they get into trouble.”

“Depositors internationally now have to think of their uninsured deposits as liable to potentially being confiscated” In addition, changes in the regulatory and policy responses to the financial crises, established in response to the Cypriot banking crisis, warrant longer-term re-weighting of optimal gold and other precious metals’ shares in defensive portfolios”Here

Read full Bail-in Report:  From Bail-Outs to Bail-Ins: Risks and Ramifications

Get Out of Big Banks NOW!

Irish Readers Please Note:

Although this US article is very relevant to Ireland there is a word of caution re. Credit Unions. Randy Langel recommends transferring your money from the Big Banks to the safety of Credit Unions. This requires careful consideration in Ireland as a high percentage of CU funds are held in the Irish Big Banks. These are the banks that may be doing a Bail-In of depositor funds and only the first €100k of any account is guaranteed by the Government. The Government has some discretion on whose funds are taken in a bail in but can we trust them? Also it may not be an EU decision. Depositors in Irish Banks are now considered creditors of the bank. The article explains that the banks in Cyprus took up to 60% of the deposits of over €100k. It has been called Legal “Bank Robbery”.

Michael Noonan passed the Bail-in process into EU law during our EU Presidency.

Get Out of Big Banks NOW!

——

Read full article here Get Out of Big Banks NOW!

The next big bank failure will not be resolved with a government Bail-Out.

It will be resolved by a depositor Bail-In.

It’s now legal for a big bank to confiscate your money.

Randy Langel

Randy.Langel@gmail.com

September 2013

“As of December 2012, federal laws, government agency approvals, international agreements, and tactical procedures are in place so the next big bank failure will trigger an entirely new resolution policy.

No longer will there be a government-taxpayer funded Bail-Out,

but rather a Bail-In.

The big banks will be allowed to confiscate your deposits at their discretion with no prior notice.

Your compensation for the bank’s absconding with your money is a new issuance of stock (equity) in their bank.”

”The unsecured debt holders can expect that their claims would be written down to reflect any losses that shareholders cannot cover, with some converted partly into equity in order to provide sufficient capital to return the sound businesses of the G-SIFI to private sector operation.”

Resolving Globally Active, Systemically Important, Financial

Institutions, co-authored by the FDIC & the Bank of England,

December 10, 2012, Page ii.

Note 1: unsecured debt holders are ordinary bank depositors like you & me

Note 2: G-SIFI stands for Global Systemically Important Financial Institutions (this means big banks)

Read full article here Get Out of Big Banks NOW!

By Randy Langel

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