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Here We Go Again: EU Lawmaker To Push For Bail-In Resolution Law For Deposits Over €100K
Here we go again:
- EUROPEAN PARLIAMENT TO PUSH FOR DEPOSITORS WITH ABOVE 100,000 EUROS TO FACE BAIL-IN UNDER NEW BANK RESOLUTION LAW - EU LAWMAKER - RTRS
Basically, this is DieselBOOM ver 2.0. How long until someone scrambles to announce that this, too, was taken out of context?
More as we see it but the EURUSD sure isn't waiting. Instead, it is plunging.
Full Reuters article:
The European Parliament will demand that big savers take losses if their banks run into trouble, a senior lawmaker told Reuters, adding momentum to a policy unveiled as part of a Cypriot bailout.
Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many experts believe it marks a dramatic change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts.
Jeroen Dijsselbloem, head of the Eurogroup of euro zone finance ministers, said on Monday that in future, the currency bloc should first ask banks to recapitalise themselves, then look to shareholders and bondholders and then "if necessary" to uninsured deposit holders.
Now the likelihood is rising that tough treatment of big depositors will be written into a new EU law, making losses for large savers a permanent feature of future banking crises.
"You need to be able to do the bail-in as well with deposits," said Gunnar Hokmark, an influential member of the European Parliament, who is leading negotiations with EU countries to finalise a law for winding up problem banks.
The European Parliament has an equal say alongside EU countries when deciding who must bear the brunt of future bank failures such as those now being seen on Cyprus.
"Deposits below 100,000 euros are protected ... deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in," Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed this line.
The law, which will also introduce means to impose losses on bondholders, is due to take effect at the start of 2015. Germany wants provisions for bailing in bondholders and others in the same year, though that may be delayed.
The European Commission wrote the first draft of the law but left it to member countries and the parliament to decide whether and when savers should face losses, when a failing bank is being salvaged or shuttered. Earlier on Tuesday, it said only that such a step was possible.
Hokmark urged savers to check their banks' health before taking the risk of depositing money.
"If you put your money in Royal Bank of Scotland ... or Deutsche Bank, depending on how that bank is working you are taking a risk," he said. "You need to be aware that you are taking a risk.
"I want us to legislate in a way that makes investors aware of the risk," said Hokmark, adding that savers should be asking whether their bank is solvent. "The bail-in instrument is creating thousands and thousands of supervisory authorities."
Cypriot President Nicos Anastasiades agreed in a last-ditch deal to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus's financial sector ran into trouble when investments in Greece went sour.
"The markets may be shocked but some principles have to be laid down," said one EU official, speaking on condition of anonymity, adding that it would be "unfair" for the new EU law to take a different approach to that used in Cyprus.
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Now 'the rich' means anybody with a $100K bank account.
(Yeah, I'm talkin' to you, Hillary.)
South Park's "Aaand it's gone" has special and direct meaning now a days. You deposit in the bank and it will just vanish. No need for derivative investments....... It will literally vanish.
http://www.youtube.com/watch?v=jrLbY4-Q99A
I have been expecting "the end" for so long ... and been wrong for so long ... now that it seems to be here, I can't believe it.
Am I my own contrary indicator?
Regards,
Cooter
No. It's just a sign that you are not mentally retarded. Good for you.
Funny, the Dow didnt even bulge
Those f***ing C*** suckers!
Way to install Confidence you jackasses
This stupidity must be orchastrated!
if you leave money in the bank now after all this, your a dumb ass.... I guess its a good way to get people off the sidelines to pump the markets more, until there is no cash left to spend.
EURUSD now in full retard mode as it made a 500bps down and 500bps move right back up in a matter of minutes
Fuck You Kevin Henry!
Revolutions start this way.
what time is dancing with the stars on again?
Can someone explain why these stupid fucks would want to chase out all the large depositors from the EU?
Peter Gibbons: This sounds familiar.
Michael Bolton: Yeah. They did it in Superman III.
Peter Gibbons: Ahhh, right.
Possible reasons:
1. To ramp stocks.
2. To consolidate banks (crush the little guy).
3. To get paper money out into the streets, then switch to all digital currency.
4. To watch the world burn.
Or,
5. Because they don't really know what they're doing.
This deserves a nobel prize... but im not sure which one...
Dynamite money... works for me.
You would think at least some of it would go into PM. Physical PM that is. But PM's dont really budge. Don't know why. Oh, never mind.
How in the name of Zues' butt can the EUR be going up among all this crap?
BIS hittin' the buy button like it's got an army of 13 year old girls on Bieber's facebook profile?
They're not trying to instill confidence. They're going to suck all of southern Europe dry. What they are saying, in so many words, is that only German banks are safe. And people are believing it. If you are with an insolvent bank in an insolvent country you're S.O.L.
Germany's pimp hand has been shown to be strong. I think they just conquered Europe without firing a shot.
Krugman just had a non-nocturnal emission.
The only thing better for Paul "I realize & used to teach that savings is a critical foundational pillar of enabling future economic growth, but that was then and this is now" Krugman would be if the deposits in excess of a sum certain amount were confiscated by the state in order to build The Government Window Breaking Device Machine Works Company, Plant No. 202-Union Local 903.
Send in the Sturmbankers
If they are trying to show German banks are safe... they are FUCKING STUPID. The will wind up destroying the entire prime banking business in Europe to benefit of JPM (and the other TBTFs in the US) and their counterparts in Asia.
Multinational homies don't play that confiscation game...
Because there's got to be something bullish in this news...
Shit. When there's no cash left in the banks I guess a cashless society will be a piece of cake.
the dow has been poisened so many times, it has developed an immunity.
(bananas)
What doesn't kill you only makes you ...... apparently even more retarded.
No, but BAC sure ain't liking it.
All of the money from these banks are going into it - it will go higher
"I want us to legislate in a way that makes investors aware of the risk," said Hokmark, adding that savers should be asking whether their bank is solvent. "The bail-in instrument is creating thousands and thousands of supervisory authorities."
No it's not, thousands and thousands of depositors will leave the banks, dumbass.Why not make bankers personally liable for losses. I suspect they would limit their risk more. Probable decrease the number of failed banks to a handful instead of an epidemic.
http://armstrongeconomics.com/2013/03/26/if-cyprus-opens-the-banks-this-...
For all the ranting about the evils of Socialism around here, people do seem to want things that amount to very expensive Socialism for the middle and rich classes.
There should be NO state-subsidized protection on deposits.
Sure, if some banks want to get together and setup and pay for a deposit protection scheme as a means of attracting deposits, go ahead and do it. Other things that they might do to attract deposits is to have NO investment banking operations at all and to keep their loans-to-deposits ratio as low as possible.
This would be a real Free Market in banking: people would need to look around and shop for the safest banks, maybe even *gasp* not keep all their eggs in the same basket, banks would need to be carefull so as not to scare deposits away. It would be a stable, robust system, completelly different from the immense, vampire populated castle of cards that passes for a financial system nowadays.
The perversion of the free market which is state protection for depositors is the main factor that allowed banks to take ever bigger risks without being punished by their customers for it.
There is no state subsidized deposit protection - current insurance is paid up by banks, same goes for insurance companies and pension funds. this is Eu legislation.
So why did the British and Dutch governments refunded depositors when the Icelandic banks collapsed?
You see, that EU law you mention only covers a very small amount: anything beyond that is guaranteed by the state. Also openly admited that the available money in those deposit protection funds would only be enough for the collapse of a couple of small banks, maybe one big one, which is why governments all around Europe keep intervening to save banks, from RBS to Dexia.
There is a de facto government guarantee on deposits across Europe.
They refunded because they chose to (politics and hoping to be reimbursed by Iceland), but Iceland isn't part of the Eu, so Eu guarantees don't apply there.
EU directive, not law, sets 100k coverage per holder, per bank (with exclusions), so in practice you could be insured for much more than just 100k, by holding multiple accounts, with multiple holders, at multiple banks (and since funds are national, also in multiple countries), but anything above that isn't covered by anyone, unless someone chooses to (except in Ireland, where apparently there's no limit, and Denmark, 750k DK). You're right about the size of the funds, though - in Portugal, for instance, in 2011, it was .03% of deposits... if the fund isn't enough, it will resort to extra contributions or loans.
Portuguese fund's site: http://www.fgd.pt/en-US/Pages/inicio.aspx
Wikipedia: http://en.wikipedia.org/wiki/Deposit_insurance#European_Union (unlike what it says here, 100k is still valid in Portugal)
it's getting emotionnal ! i've been waiting for this for so long :-)
wake up crazy,
Who said anything about it being over. I don't see or hear a fat lady singing anywhere
WOW, that sure escalated quickly...
They are dropping financial nukes left and right but the preses keep rolling on......
Isn't this just a confirmation of existing rule?
Doposits are covered up 100000 and anything over that is not?
This is like a discussion about credit risk in senior and sovereign bonds. Anyone investing should understand a possibility of loss. Why do we have a credit spread? That is called market discipline.
I don't believe it is because everything above 100k was at risk when the bank would fall over. With the new proposal it can be used by governments to "save" a bank when the government believes it's necessary. It basically makes it easier for goverments to confiscate savings above 100k.
With fractional reserve banking it's very easy to prove a bank can't meet it's promises. A negative comment from the Eurogroup is a death penalty for a any bank as soon as it erodes trust.
MF Global was just the flag they ran up the flag pole to see which way the wind would blow after nuking the customers. No riots in the streets, no assassination attempts on Jon Corzine, no legal repercussions, nobody goes to jail -- life is good for the Banksters.
So, customers will allow themselves to be Corzined without a peep. The Banksters now have carte blanche to rape and pillage at will.
Let the Games begin...
They said that about the previous straw on the camel's back, too.
The problem there is that they keep jacking up the camel at the same time they keep adding straws to its back --- while overlooking, of course, the fact that the camel's internal organs are slowly being crushed in the process.
Did you forget that Congress is exempt from anything that prevents them from gaining more power and wealth? You know like special healthcare, insider trading, balancing the budget, bribery, kickbacks etc etc
Nah, they will just trade it ... short ... long ... they don't care. I bet some back office bureaucrats in Brussels are glued to their eTrade accounts all day ...
Regards,
Cooter
"Isn't this just a confirmation of existing rule?"
And the rule is that rules no longer matter. I hate banks. Having said that how many people with their money in Banks have ignored the endless daily streams of news regarding bank money laundering, insider trading, off book transactions, ad infinitum and still keep their money in Banks without saying shit about any of it!
Where I grew up, if you let me take your freaking wallet guess what. I'll fucking take it again.
If you participate in a corrupt system then you deservedly suffer the consequences of doing so. That is Karma. You can not blindly allow some one to rip you off and then fucking bitch about it. Get off your ass burn the banks down and then go to Washington and tell the Bankster/Corporate whore to get the fuck out of town.
It won't happen though cause the people will demand that the Bankster/corporate whores fix it for them?
At some point in time you got to take personal responsibility. Sometimes that means taking an ass whipping. And if ya can't handle that then go live on an island somewhere.
IT was the people that allowed this situation to become what it is. It is only the people that can fix it.
This is definitely a signal to people to get the F&*k out of the banks and go to Bank of Mattress!
Quick...everyone transfer ALL CAPITAL to some bank in the Cayman islands! We need warp speed in 3 minutes or we're all dead.
Quick...everyone...convert to US dollars right now...in the country where Ben Bernanke plops down $3 billion everyday and roles dem bones....
Clearly this is going to spread everywhere the way banks are so deeply in each others pockets.
Is the future simply capital controls across the entire devevloped world where the banks simply overtly "fee" us to death to keep their existance?
Regards,
Cooter
I hope that's not what gold's trying to say.
no, gold is under full front manipulation attack... they're determined to keep it off the radar screen for they know if it enters the public's thoughts while they're raiding bank accounts, it'll head over the moon. Buy physical and keep it outside the banking system is only answer here.
BUY PHYSICAL BITCOINS !!!
If they get their fantasy of a cashless society there won't be anything to put in the mattress.
Since one would pretty much have to store their electronic fiat in a bank...
Long tangibles and black markets.
It's a case of the best looking ugly dog.
<Ole (USA) Yella wins by a nose.>
FUTURE FLASH: Ben Bernanke announces that all US deposits over $100k must be immediately converted to shares of GE.
Long mattresses and portable deposit boxes!
evryone, every country?
Americans are safe. Don't worry. Nothing to see here. America is #1! U.S.A.! U.S.A.! U.S.A.! America is the bastion of Freedom spreading our wealth around the world via strong military.
The game is rigged /up?
The game is being rigged by the Germans. Remember that their goal is to run the whole casino so to predict where this show goes you need to figure what needs to happen to get them to goal. My guess is more crisis so that the desired rule changes can be made. I don't expect the 'Cyprus fix' to work even if that were possible because the Germans don't have their rule changes yet. Federation.
LUDICROUS SPEED! FORWARD!
LOL
As Alaricbalth pointed out, those two banks may be open. So what is the point of all this? The money is still flooding out as we speak? You can't find this kind of comedy anywhere else.
You'd think the EU could monetize this high comedy by selling ads or something.
They securitized sub prime ... so why can't they securitize bail ins? People are dumb enough to buy this shit all along, not like they slept on a pile of books last night and got smart all a sudden.
They just aren't trying hard enough ... lazy bankers!
Regards,
Cooter
The Troika Template is here to stay.
This will hit businesses and also what about people selling/buying a house? You dare not risk doing any business or moving house now!
An excellent point. Unintended consequences, indeed....
Be careful Tyler you're gonna blind yourself with that crystal ball.
very good, but I thought that blindness had a different cause
that's it.
NOBODY is going to trust the banks now, even if they come and say it's all been an April's fool joke.
Bank runs in 3... 2..... 1.....
Last one out turn off the lights
The lights have been out for more than a week !
..well, except for the SWIFT terminal.
MOAR !! MOAR !!!! ALL YOU DEPOSITS ARE BELONG TO US !!!!!
I'm already long Castor Beans and Bulgarian Umbrellas - now I have a hot line on some Manila rope
When do the lawsuits start? Especially for those that hold client money?
Boom shaka-laka-laka Boom shaka-laka-laka..
Ben And The Family Stoned : " .... wanna-wanna-wanna take you hiiiiigher .... "
I just felt compelled to say good morning to my stack.
My precious...so shiny and non-digital.
Bank runs should be happening in earnest now
This is beyond desperation. Get some precious metals and a bowl of popcorn. Sit back and watch reality meets the
sheeple.
I am looking forward to a nice game of Donkey Kong tonight.
pods
This is beyond desperation. Get some precious metals and a bowl of popcorn. Sit back and watch reality meets the sheeple.
All I can do right now is just sit back and laugh. Why do they want to intentially cause a run on their currency? Maybe the plan is to destroy the euro, cause a worldwide depression, and bring forth the final solution of a single currency sdr.
Maybe? Are you new here? /sarc
I thought that meeting was meant to be in China in september.
I guess someone moved the schedule...
You could be on to something.
You could be on to something.
The cat is out of the bag. No wonder there's been so much pressure on gold prices during London trading hours for so long.
The relief valve for supressed gold prices is the delivery times, which keep going up. And silver if just as bad if not worse.
The EUR/USD tomorrow = 1,25 ^^
EUR unched TY
for fun go to your local bank branch and if you got 20k or whatever in your account request to withdraw $10k in cash -- good luck
...a few forms of ID, a couple questions; BAM! I got to clean out two drawers in my local branch. they even gave me a bag! try it!
We need a poll!
How many of ZH readers have emptied their bank accounts?
How many of EU citizens have emptied their bank accounts?
How many of US citizens have emptied their bank accounts?
What proportion are sheeple?
We could be emptying our 20 rd mags shortly ...
20's? hehehehhe
Running out of Popcorn fast
As long as they don't open the banks, they can have their cake and eat it too - confiscated deposits, and 'look, no bank runs, everything's fine'.
Now where is that other shoe that was just dropped.
<It was just here a moment ago.>
1.2660 here we come. :-)
WE WILL NOT TAKE AWAY YOUR MONEY AS LONG AS WE CAN'T TOUCH IT, SEE IT OR SMELL IT!
promise...
Ever notice when MSM is harping good news, ZH reads are down? When there is a hint of insecurity in MSM, ZH reads are up. I wonder why that is?
I have never seen the market AND economy this broken ever before. Watch EURUSD, watch european indices. Algos are completely crazy throwing everything back and forth. Bullshit news circulationg from one minute to another. This is beyond disgusting!
Tylers,
I think this Japan election story is more than the wiffleball version that you linked this morning (FT--which requires registration/payment to read anyhow).
http://www3.nhk.or.jp/daily/english/20130326_20.html
Japan courts invalidate national election
A high court in Okayama, western Japan, has ruled that the last general election was invalid due to large disparities in the weight of votes between constituencies.
The judgment comes one day after a similar ruling by the Hiroshima High Court that sent shockwaves throughout Japan. It was the first time in the country's judicial history that a court invalidated the results of an election because of vote value disparity.
Groups of plaintiffs filed separate cases at high courts and their branches across Japan immediately after the general election in December. They demanded the results be invalidated.
The plaintiffs argue that votes in sparsely populated rural areas outweigh ballots in urban areas by a factor of up to 2.43 .
The presiding judge at the Okayama branch of the Hiroshima High Court ruled Tuesday that the election at one local constituency was invalid.
The judge cited a Supreme Court decision in 2011 that called vote-value disparity effectively unconstitutional.
He acknowledged the enactment of a bill shortly before the December election to reduce the number of single-seat constituencies. But he criticized lawmakers for failing to implement the new legislation in time.
Also on Tuesday, six high courts, including Tokyo and Matsue, ruled the election unconstitutional, but stopped short of invalidating it. Local authorities can appeal the rulings to the Supreme Court.
Mar. 26, 2013 - Updated 13:19 UTC (22:19 JST)
Wow.
Thanks dude!
so it's template on?
Good one.
Templates bitchez!
PARITY_CHECK
It does not matter anymore until it ends in the US, Japan. Otherwise the dollars keep pouring into the funnel known as US Treasuries. They in turn send it to the Banks, who in turn keep buying up stocks and shorting gold to continue to excrete all over everyone that tries to stop them. Simple, a small country like Cyprus is used to show us what we will look like in the future. Somehow, people have to take all their money out of the only scam that seperates them from 90%. When is that going to happen?
Makes you want to buu more AR's, more ammo, more Statist destroying assets. Start putting a ring around the mid West, South West and moving there. Then when the system is finally starved, watch Rome fall..
diesel boombomb, u made my day
Maybe he can make a sequel to Kevin James movie. Here Comes The Boom II ....the story about a sociopath who wrestles with truth while detonating the European debt bomb
I told you so, the Diesel Boom doctrine; à la BCG study, is now EU doctrine.
What lessons for the QE crowd is the big question, as it puts an ideological spike between the bail out crowd of anglo saxon/Japan world vs the bail in EU doctrine.
Does this matter, for USD vs Euro dissemination ?
oh, it does matter - expect a lot of consequences spread over the next months. and yet don't forget how much more physical paper cash circulates here in europe compared to the USA - after all we have huge amounts of EUR 500 notes
speaking of which, I hear there are several planes of EUR cash flying to Cyprus
Strange how pallet loads of cash can easily get on planes, but German gold takes 7 years.
Looks like Jon Corzine set a precedent for bail ins with his MF Global investors...Oh yeh JPM was innocent....ahem
http://www.nationalreview.com/articles/339811/corzine-s-crime-century-br...
As Pete Schiff said last night, the deposits for just Citi and Bank Of America are about 2 trillion. The FDIC has about 25 B or about 1.25% of those 2 banks deposits. If that doesn't give you the warm and fuzzy's nothing will.
Nothing says bail out like a bail-in.
It appears the plug is purposely being pulled on the system. I highly suggest you buy physical gold and silver while it is still in stock. You are crazy if you are not buying at these subsidized price levels while Peter Schiff's Bankpocolypse 2.0 is happening.
But, but....but what if i hold USD on my account with an EU bank? Assuming this is more than 100k€, am i screwed as well or is this just meant to corzine EUR deposits hold with an EU bank?
No problem in the US - Big Sis has two billion rounds on order to handle the crisis.
Funny how there's always money for stuff like that, eh?
My opinion? I wouldnt be surprised if this ammo thingy is supplying and fomenting shitstirring in places like Syria...
.40 cal hollow points not the right ammo for that
Cyprus was a toe in the water - to imprint the possibility of such in the mind of the public.
Spain, Italy, France -- My condolences.
Wealth confiscation is the name of the game.
Forward, Soviet!
Meanwhile DOW up a full-retard +100 again....someone stop this stupid ride, I want off.
No can do... Hotel Dow-a-fornia...you can bet against it anytime, but it will never go downnnnnn...
Every day from here on out---> Simple Jack (2009) Full Extended Trailer - Official/High Quality - YouTube
I'm not 'betting' against the DOW or anything else myself....I'm just watching outside of the implosion zone....let them do what they want I don't care anymore.
How is this good for bears in the U.S.? It seems this could result in a flood of money coming into our stock and real estate markets. Not something I want to see. I want to hear some news about our politicians refusing to answer if they would ever confiscate our deposits(other than the 50% they stole via under-reported inflation these last five years).
If an actuall flood of money suddenly came into the U.S. the FED would panic-seize it all by dumping markets, they're so desperate.
This will mean even less money going in the banks, why would anyone put more than 100K in there getting very little interest with that sort of risk?!
Which is why in a future crisis, the EU socialist bureaucrats will have to steal the money under $100,000 in deposits. Keep your money out of the banks.
Corporations with real employees (and customers paying electronically)-
HAVE NO CHOICE.
But what of the EU bank stress tests?
They seemed so awesome. Everyone got a participation ribbon.
post of the week!
Are you insinuating the results may have been swayed to protect the corrupt banksters, their losing gampling addictions and Uncle Bens Converted Economy?
They are welcome to give me a hair cut off my gold, which I unfortunately lost in a tragic boating accident!
Or they will have to rock up with a metal detector!
Idiots.
UBER-BULLISH!
The "What a great idea!" party is beginning:
Euro Bailouts: Savers Be Warned - Your Money's Not Safe
A Commentary by Armin Mahler
http://www.spiegel.de/international/europe/commentary-on-impact-of-euro-crisis-on-european-savers-a-890789.html
Nothing is safe from being seized by the state, no savings account, but also no house or apartment. The Germans experienced this after World War II, when they were charged an extra real estate tax in the form of compulsory mortgages. Governments have even banned the possession of gold during currency crises, forcing citizens to exchange the precious metal for the national currency.
So far, people in the debt-ridden countries of the euro zone haven't had such levies imposed on them. But why not? According to a recent study by Germany's central bank, the Bundesbank, for instance, Spaniards hold more wealth, on average, than Germans.
Greece and Cyprus have millionaires and billionaires of whom many profited from the artificial boom fueled by low interest rates after the introduction of the euro -- a boom that subsequently went bust. Why shouldn't they help finance efforts to deal with the aftermath? Is it fairer to place the burden on the euro bailout fund, and thus distribute it among the taxpayers of other countries?
---
Dear elites: If you want the Muppets to play in your pool, you have to at least give the appearance of some security. You see, while 'money' is bits n' bytes to you, it is value of labor for the WS2 (Working Stiffs to be Stiffed). Therefore, it is highly probable that the WS2 will not put their money in your 'pool' if they perceive the product of their labor will be confiscated. This has been a Public Service Announcement.
And gold is dowwwnnnnn!
"paper gold is down", fixed it for you.
People are fucking stupid. These criminals are telling them they are going to steal their deposits, yet they still keep their money in the system.
EURO Dijssed
REHN of Terror now begins......
Fair warning.
Unfortunately, the 900 million sheep logging onto facebook will be caught by surprise.
At some point they'll be part of the anger phase.
That's what .gov hollow points are for.
GLTA
Collective insanity.
"...to spare taxpayers who have been on the hook for previous bailouts."
Earth to EU FUCKTARDS...
Depositors are already taxpayers... I.e from where you steal your money in the first place...
You could not make this shit up!
A northern european bank must be very close to collapse.
The Fed must have refused to expand QE.
Hence, they are trying to pull an MFG in european scale.
Entertaining.
From Armstrong Economics:
Sovereign Debt Crisis ConferenceMarch 25, 2013
Oh, those Russians, it is all because of them again!