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Cyprus Paved the Way For an FDIC-Approved Money Grab

Phoenix Capital Research's picture





 

 

As Cyprus has now shown us, when systemic collapse hits, it hits FAST and FURIOUS.

 

The quick timeline for Cyprus is as follows:

 

  • June 25, 2012: Cyprus formally requests a bailout from the EU.
  • November 24, 2012: Cyprus announces it has reached an agreement with the EU the bailout process once Cyprus banks are examined by EU officials (ballpark estimate of capital needed is €17.5 billion).
  • February 25, 2013: Democratic Rally candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an anti-austerity Communist.
  • March 16 2013: Cyprus announces the terms of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for accounts larger than €100,000… a bank holiday is announced.
  • March 17 2013: emergency session of Parliament to vote on bailout/bail-in is postponed.
  • March 18 2013: Bank holiday extended until March 21 2013.
  • March 19 2013: Cyprus parliament rejects bail-in bill.
  • March 20 2013: Bank holiday extended until March 26 2013.
  • March 24 2013: Cash limits of €100 in withdrawals begin for largest banks in Cyprus.
  • March 25 2013: Bail-in deal agreed upon. Those depositors with over €100,000 either lose 40% of their money (Bank of Cyprus) or lose 60% (Laiki).

 

The most important thing I want you to focus on is the speed of these events.

 

Cypriot banks formally requested a bailout back in June 2012. The bailout talks took months to perform. And then the entire system came unhinged in one weekend.

 

One weekend. The process was not gradual. It was sudden and it was total: once it began in earnest, the banks were closed and you couldn’t get your money out (more on this in a moment).

 

If you think this cannot happen in the US, think again. The FDIC has already proposed legislation that would allow it to TAKE CONTROL OF A BANK IT DEEMS SYSTEMICALLY IMPORTANT AND WRITE DOWN YOUR SAVINGS ACCOUNTS as part of the bail-in.

 

This power was granted in the 2010 Dodd-Frank bill, although 99% of investors are not aware of it. We’ve just drafted a Special Report outlining the precise legislation as well as the powers of Life and Death it grants the FDIC over YOUR SAVINGS.

 

To learn more about this legislation… visit us at www.gainspainscapital.com

 Best Regards,

Graham Summers

 


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Tue, 04/09/2013 - 23:23 | Link to Comment Arthur
Arthur's picture

Really.  This dribble is not worthy of a ZH.

 I mean Reggie at least post his articles - even if they are a bit outdated.

This Phoenix teaser is a waste of ZH readers time.  It should be in a paid pop up ad.

 

Tue, 04/09/2013 - 23:04 | Link to Comment walküre
walküre's picture

German legislators are discussing a 30% wealth tax on German deposits. Stay tuned.

Tue, 04/09/2013 - 23:01 | Link to Comment saveUSsavers
saveUSsavers's picture

Too many morons here on these boards think they would risk bank-runs, maybe you should go down and ACTUALLY TALK TO BANK EMPLOYEES, like I did today! This crap here is over-the-top in guns and ammo bunker mentality BS.

Tue, 04/09/2013 - 23:00 | Link to Comment saveUSsavers
saveUSsavers's picture

Too many morons here on these boards think they would risk bank-runs, maybe you should go down and ACTUALLY TALK TO BANK EMPLOYEES, like I did today! This crap here is over-the-top in guns and ammo bunker mentality BS.

Tue, 04/09/2013 - 22:55 | Link to Comment saveUSsavers
saveUSsavers's picture

I HAMMERED the manager at WFC today, I told him the mm funds SHOULD FLOAT ! Risk is OUT OF CONTROL ! If mm funds have overnight repos, of asset-backed paper, THE NAV SHOULD FKING FLOAT !

 

The only sweeps/mm funds safe should be invested in TREASURIES ONLY !

 

He's taking the info to the helm, "we appreciate all imputs, we've been getting lots of it (on int. rates)

Tue, 04/09/2013 - 22:04 | Link to Comment caribbeanbarry
caribbeanbarry's picture

Since when has law, logic, fiduciary responsibilities ever applied to Congress, Banks, the Treasury or the FED. Of course they can confiscate deposits. it's within the vampire octopus DNA...

Tue, 04/09/2013 - 15:52 | Link to Comment Obaminator
Obaminator's picture

Ive read the report from BoE and FDIC twice...It explicitly states that insured deposits will be untouched...in multiple places...so, how is it that PHX Cap continues to say they want our savings? I think they way it works is any savings in the US over the FDIC limit (which was limitless thru 12/31/12, but is now $250,000) are count4ed as unsecured credit, yet under $250K is safe.

Anyone who actually read the report care to chime in, if im wrong, Id like to know, and Id like to know what loopholes they use to try and go after accounted under $250K.

Are they somehow wording it a certain way that makes the Dodds-Frank bill supercede the FDIC "insurance" wording, or are only people with more than $250K at risk?

Tue, 04/09/2013 - 23:08 | Link to Comment walküre
walküre's picture

FDIC Insured. Reminds me of "9 out of 10 Doctors prefer Marlboro".

Good propaganda but absolutely no facts.

Tue, 04/09/2013 - 22:50 | Link to Comment saveUSsavers
saveUSsavers's picture

I was in wells Fargo today- they said under $250K limit is protected, "they talked about reducing FDIC, but not heard anything lately "

Tue, 04/09/2013 - 22:13 | Link to Comment hardcleareye
hardcleareye's picture

Concur with your assessment.

Cypress was looking for "insured deposit" money for bail in because the Government of Cypress could not honor the insured deposits without completely wiping out everyone else, concept of spread the pain..... remember Cypress has no printing presses, duhhhhhhh.  Gee aren't we always "talking" about inflation and QE here on ZH.....

If we get to the point were the USA cannot honor ( note that doesn't mean that they will not take it away via devaluation of the currency) "insured deposits" it's all over.... (and that day may come, but we are a few years off) USA can and will print if need be, look at QE 1,2 etc...

 If I want to read this type of shit I will go over to Alex Jones Info World and put my tin foil hat on and have a good laugh.......

<sadly shaking head>

This is truly a piece of shit article....... I am going over to read Jesse's and than see if Biderman's got a new rant up!

Tue, 04/09/2013 - 17:22 | Link to Comment JR
JR's picture

The bankers and their captured governments are setting a precedent of being able to change the rules in mid-stream and, according to Jim Rogers, “Anything they know about—they might easily take.” IOW, even if an asset's nailed down it isn't safe from a government or Fed-connected banker in need when plunder is legalized.

In December, the US and UK bankers came up with a plan, if implemented, to confiscate customer deposits – both secured and unsecured-- to fund bank bailouts, now that taxpayers have been maxed out from bank bailouts and are up in arms.

It’s a joint plan issued by the US Federal Deposit Insurance Corporation and the Bank of England that originated with the G20 Financial Stability Board in Basel, Switzerland.

Under the plan, in case of bank failure, the bank will get the money and the depositors will get stock in the failed bank.

The document, called “Resolving Globally Active, Systemically Important, Financial Institutions” “begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain ‘financial stability,’” according to Ellen Brown, , chairman of the Public Banking Institute,

Yves Smith of Naked Capitalism writes: “The regulators have turned a blind eye as banks use their depositaries to fund derivatives exposures.

“The 2005 bankruptcy reforms,” she explains, “made derivatives counterparties senior to unsecured lenders… while the depositor who puts up 100 cents on the dollar is ‘unsecured’.

“One might wonder why the posting of collateral by a derivative counterparty, at some percentage of full exposure, makes the creditor ‘secured,’ while the depositor who puts up 100 cents on the dollar is ‘unsecured.’”

“No exception is indicated for ‘insured deposits’ in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance”  would be at risk and vulnerable to being wiped out, writes Brown this week in an article entitled, It Can Happen Here: The Bank Confiscation Scheme for US and UK Depositors.

The result of the joint plan, she says, “will be to deliver clear title to the banks of depositor funds.”

For details:

http://www.globalresearch.ca/it-can-happen-here-the-bank-confiscation-scheme-for-us-and-uk-depositors/5328954

Tue, 04/09/2013 - 15:38 | Link to Comment de3de8
de3de8's picture

Never as never.

Tue, 04/09/2013 - 15:45 | Link to Comment Obaminator
Obaminator's picture

???

Tue, 04/09/2013 - 15:11 | Link to Comment JR
JR's picture

"Some [Most] people think the Federal Reserve Banks are the United States government's institutions. They are not government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign swindlers." -- Congressional Record 12595-12603 -- Louis T. McFadden, Chairman of the Committee on Banking and Currency (12 years) June 10, 1933

Tue, 04/09/2013 - 15:03 | Link to Comment stiler
stiler's picture

render unto Caesar the things that are Caesar's.

 

Come on...

Tue, 04/09/2013 - 22:26 | Link to Comment akak
akak's picture

The problem is that today Caesar considers EVERYTHING to fundamentally be Caesar's.

Tue, 04/09/2013 - 14:27 | Link to Comment Joebloinvestor
Joebloinvestor's picture

You neglect to say the "bail in" was agreed upon but never voted on as it would have been rejected like everything that was put to a vote before.

It was a decree.

 

Tue, 04/09/2013 - 15:22 | Link to Comment newworldorder
newworldorder's picture

Please elaborate on your "never voted" comment. Voted by whom?

Tue, 04/09/2013 - 14:03 | Link to Comment Mototard at Large
Mototard at Large's picture

Once again, this is old news.  The FDIC and the BOE have been talking in the open about this since at least December of 2102.  Just like in Cyprus, the UK government (Bank of England) and the US Government  (Federal Deposit Insurance Corporation FDIC) are planning on how to take money out of savings accounts in the next financial crisis.  The FDIC and the Bank of England have written a joint paper explaining how savings deposits which are said to be guaranteed for the depositor will instead be used to bail out failing banks. 

See an explanation and the Bank of England/FDIC paper which proposes this at:  http://tiny.cc/z4jcuw

Same thing in Canada: http://tinyurl.com/cvcf9v9

Same thing in Spain: http://tinyurl.com/cedrumy

 

Tue, 04/09/2013 - 15:51 | Link to Comment Obaminator
Obaminator's picture

Ive read the report from BoE and FDIC twice...It explicitly states that insured deposits will be untouched...in multiple places...so, how is it that PHX Cap continues to say they want our savings? I think they way it works is any savings in the US over the FDIC limit (which was limitless thru 12/31/12, but is now $250,000) are count4ed as unsecured credit, yet under $250K is safe.

Anyone who actually read the friggin report care to chime in, if im wrong, Id like to know, and Id like to know what loopholes they use to try and go after accounted under $250K.

 

Tue, 04/09/2013 - 14:00 | Link to Comment steve from virginia
steve from virginia's picture

 

 

 

 

Dumb ... dumb ... dumb!

 

The Treasury can issue as much currency as it likes, any time it likes, that is why there will be no 'bail-ins' from bank depositors.

 

The Treasury can borrow as much as it likes from the central bank, any time it likes ... good grief!

 

 

Tue, 04/09/2013 - 14:27 | Link to Comment andrewp111
andrewp111's picture

Actually, the Treasury can't borrow as much as it likes from the Fed. There is a Congressionally mandated debt limit.

They can issue proof platinum trillion dollar coins, though.

Tue, 04/09/2013 - 22:56 | Link to Comment saveUSsavers
saveUSsavers's picture

you've gota be fucking kidding, that is superceeded ALL THE FKING TIME !

Tue, 04/09/2013 - 16:24 | Link to Comment negative rates
negative rates's picture

The moment WE find that out, it will be too late.

Tue, 04/09/2013 - 13:47 | Link to Comment Shaten
Shaten's picture

And this is any different from a bank shutting it's doors on friday and announcing chapter 11??

Tue, 04/09/2013 - 14:01 | Link to Comment covert
covert's picture

bend over. where is the lube?

http://covert.nl.ae/

Tue, 04/09/2013 - 13:05 | Link to Comment johnjkiii
johnjkiii's picture

Hemingway said it. When asked how he went bankrupt: "Two ways. Gradually, then suddenly.”

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