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Bank Of England Leads Push For Deposit Confiscation - Japan, China, Russia Against Bail-Ins

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Bank of England officials led by Mark Carney, the Bank of England governor, are attempting to bridge sharp differences among leading G20 countries as they prepare a landmark set of proposals aimed at tackling the problem of “too big to fail” banks according to the Financial Times today.

Talks under the auspices of the global Financial Stability Board (FSB) over the summer are approaching a key stage as officials aim to clinch an agreement on bail-ins and the bailing in of creditors including depositors of banks.

Finance officials are hoping to pave the way for proposals to be tabled at the G20 leaders meeting at the Brisbane summit in November.

The issue is of major consequence to globally systemic lenders such as Citigroup, Barclays and BNP Paribas, as some will have to issue billions of dollars of fresh bonds earmarked to carry losses.

The issue is of major consequence also to depositors who could see their savings confiscated as happened in Cyprus.

The complexity of the topic and differences between countries’ legal regimes and corporate structures are raising questions over how detailed any framework will be.

Japan is one of the countries with problems with bail-in plans amid concerns that they are not easily compatible with the structure of its banking system. Its banks are heavily deposit-funded, and officials are uncomfortable about the idea of bail-ins.

Japanese banks are already vulnerable and bail-ins could hurt consumer sentiment in the already struggling Japanese economy. Concerns in Tokyo are said to be sufficiently profound for it to push its case right up to the summit itself.

China is also sceptical about the notion of private sector bail-ins given its banks are state-owned. “There are some very entrenched positions,” one official told the FT.

Russia is likely to oppose the coming bail-in regime as well as many other large creditor nations.

Mr Carney, who also chairs the FSB, said in March he wanted to “break the back” of the too big to fail issue this year. He said regulators sought by Brisbane to have cracked two major issues – on the loss  absorbing capacity that big banks have to hold and on contractual provisions in derivatives contracts.

Bail-ins are coming to banks in the western world with consequences for depositors.

Must read guide to and research on deposit confiscation and banks that are vulnerable to deposit confiscation can be read here:
Protecting Your Savings In The Coming Bail-In Era

 

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Tue, 07/22/2014 - 14:41 | 4989254 Don't Outsmart ...
Don't Outsmart Your Common Sense's picture

Nothing to see here, move along!

 

Got Gold?

 

 

Tue, 07/22/2014 - 14:28 | 4989171 MrBoompi
MrBoompi's picture

Isn't it ironic and sick that in order to "solve" a problem with too big to fail banks they would need to steal people's savings and checking accounts?  What did they ever do to cause the problem?

 

 

Tue, 07/22/2014 - 20:59 | 4991085 Liberty2012
Liberty2012's picture

1. Be willing dupes
2. Decide to go along with it
3. Head in the sand
4. If you can't beat 'em join 'em
5. Clueless
6, Lackadaisical
7. Etc etc - pick your sin, it's all covered

And - it doesn't solve any of the problems.

The foundation of the problem is all of the above.

There will always be people to take advantage of those who let them.

The key is for people to pay attention, be responsible, hold shysters to the light, and speak the truth.

Wake Up!

Tue, 07/22/2014 - 13:45 | 4988929 VWAndy
VWAndy's picture

They want the paychecks. Electronic deposits on fryday no milk money for the working class.

Tue, 07/22/2014 - 13:54 | 4988882 Jack4952
Jack4952's picture

WHY would anyone have a significant amount of money in any bank?

I keep a maximum of $2,000 in a non-U.S. bank checking account (with a DEBIT card) for paying bills due immediately and emergency expenses (such as airline tickets and hotels on business trips). But I consider that $2000 as "expendable", meaning that if it is seized via a "bail-in", it will not hurt me - though I will stilled be "pissed". When I cash a check from someone else, I always as the bank teller for CASH only.

All of my other "money" is in CASH, PHYSICAL GOLD (located in 4 different countries; NOT in the U.S.), STOCKS and REAL ESTATE (existing housing). I keep nothing in bank "safety deposit" boxes, since I assume their contents will be seized during any "bail-in". By the way, I moved out of the U.S. permanently in 2009.

If you still keep large amounts of money in banks, can someone PLEASE explain to me WHY?  Seriously.

Tue, 07/22/2014 - 13:22 | 4988763 KnuckleDragger-X
KnuckleDragger-X's picture

Time to get out the rope and start practicing... https://en.wikipedia.org/wiki/Hangman%27s_knot

Tue, 07/22/2014 - 12:49 | 4988568 World Dollar
World Dollar's picture

The key point is that there is a fundamental, logical flaw at the heart of our monetary system. 

Our monetary system's survival depends on treating debt and "money" as equally valuable, when, of course, they are not. If I were to give you £1000 today with 100% certainty, it is more valuable to you than £1000 in the future, even with 99.9% certainty. The fact that the debt (for future repayment) has any uncertainty means that the present value of this debt is less than than the pound denominated sum. 

What this means is that everyone has a financial incentive to get money out of the fractional reserve banks as soon as possible. It is a clear, obvious arbitrage opportunity. The final bank runs must come as a matter of logical certainty; it is only a question of whether it is sooner rather than later. 

The political and banking classes, as well as the "economists" that have supported them, are split between the fools and the wise. The latter, while knowing full well the logical impossibility of our fiat money system, have not acted on their knowledge as a matter of rational self-interest; their very livelihood has depended on the system's perpetuation.

Tue, 07/22/2014 - 12:37 | 4988481 VWAndy
VWAndy's picture

 Its all fun and games. Then bandana man showed up.

 The monopoly of force is a fiction. Its only a monopoly of the willingness to use force.

 Accountability is nothing to fear if you are honest. Once that shit starts anything goes.

Tue, 07/22/2014 - 12:31 | 4988440 joego1
joego1's picture

"Mr Carney, who also chairs the FSB, said in March he wanted to “break the back” of the too big to fail issue this year."

Just give them all your money and they will go away quietly

Tue, 07/22/2014 - 12:51 | 4988576 Zero-risk bias
Zero-risk bias's picture

I'd quite like to break his back and then shove an apple into his fat gob.

Tue, 07/22/2014 - 12:06 | 4988281 tlnzz
tlnzz's picture

Plain, simple, old fashion theft.

Tue, 07/22/2014 - 12:30 | 4988438 CH1
CH1's picture

Plain, simple, old fashion theft.

Well, yes, but there is a layer of bullshit to confuse the Bubbas: To keep you safe from worse. Trust us and remain very afraid!

Tue, 07/22/2014 - 11:50 | 4988179 Otto Zitte
Otto Zitte's picture

Look all you men whose jobs were outsourced. You have some time on your hands. Go find the lonely wives of these backstabbing pricks and show them your meat. Then show their daughters. If you're like me, their daughters will want you to show your meat to all their friends. Don't think of it as work. The whole point is to explore your creative capacity for mayhem.

Tue, 07/22/2014 - 11:34 | 4988088 Otto Zitte
Otto Zitte's picture

Gold bitchez!

Tue, 07/22/2014 - 11:35 | 4988086 Otto Zitte
Otto Zitte's picture

Lead crackaz!

Tue, 07/22/2014 - 10:54 | 4987860 messystateofaffairs
messystateofaffairs's picture

"Lord" Rottenchild, Satans own private cutout, wants all our money to save his dynasty's failing Satanic plan. In the meantime sheeple awaken, and the enemies of their enemies are becoming useful friends. Go Russia, China and other BRICS. Parcheesi (ludo) anyone? Next stop, goodbye party for the dollar and with any luck the BIS.

Tue, 07/22/2014 - 10:50 | 4987844 Bahamas
Bahamas's picture

Carney and Draghi, G.S. buddies .

Tue, 07/22/2014 - 10:46 | 4987817 p00k1e
p00k1e's picture

I have around $450.00 in a credit union savings account.

They pay my like 2-cent in interest a month, yet charge me three dollars a month to mail me a statement. 

The bitch, eventually I’ll get an ‘inactivity’ and they’ll just keep the money.  LOL

I’ll close the account tomorrow. 

Tue, 07/22/2014 - 12:40 | 4988466 HardAssets
HardAssets's picture

Buy silver with it

(If you have enough food, water, & other emergency supplies.)

Tue, 07/22/2014 - 10:46 | 4987812 casfoto
casfoto's picture

I suspect that the leaders in those particular countries do not want to comply with bail ins is because they are terrified of the people with knives and pitchforks. For example, several years ago in China, one official was caught stealing from the people. I remember reading that several thousand of them surrounded his house and took him and tore him limb by limb. If that happened a couple of times in USA and England, the asshole theif congressmen and bankers on top would think heavily about doing something wrong....but as we know both England and the USA are heavily watched from the top. They are scared.

Tue, 07/22/2014 - 12:25 | 4988402 QQQBall
QQQBall's picture

First they will crash sumtin and the bail-in will start out with a class warfare angle when systemic fear is increased. As the sausage goes through the grinder the bail-in terms will evolve. Panic first and avoid the rush

Tue, 07/22/2014 - 10:41 | 4987791 BigRedRider
BigRedRider's picture

 

 

This is why I pulled most of my savings to pay down my mortgage Principal.  One more year and my house belongs to me and my town tax assesor.

 

One more year then I'll be home

Drinking beer and pissing foam

Honeyyyyy...O baaaaby mine.

Tue, 07/22/2014 - 14:34 | 4989208 allgoodmen
allgoodmen's picture

I have to respectfully disagree with your mortgage paydown strategy. If financial pox-eclipse happens soon as most ZHers expect, you want to have as much fixed apr debt locked in as possible. Especially in the case of a mortgaged house. If the currency inflates rapidly, you could pay it off in months.

And, with property, even if you had to stop payment for other reasons (a deflation, property tax hikes, etc) it would be years before a foreclosure comes thru - if ever. You could literally stay rent free indefinitely, living off the provisions your accelerated mortgage payments should be going to.

Tue, 07/22/2014 - 12:39 | 4988492 SpanishGoop
SpanishGoop's picture

Those bricks/timber will never belong to you.

 

Tue, 07/22/2014 - 10:36 | 4987774 p00k1e
p00k1e's picture
The Rolling Stones - Bitch

 

http://www.youtube.com/watch?v=HoQqAI2Zgdk

Tue, 07/22/2014 - 10:13 | 4987667 Cheyenne
Cheyenne's picture

I meade a short (3-4 min) video last week explaining how bail-ins will suck your bank accounts dry when someone in the derivatives casino hits a bad skid of bets. Popular topic, it seems, as it's my first vid ever w/10,000 hits...

https://www.youtube.com/watch?feature=player_detailpage&v=R16tLKio974#t=88

Tue, 07/22/2014 - 14:20 | 4989122 Uchtdorf
Uchtdorf's picture

I liked your other video better and it had more views:

https://www.youtube.com/watch?v=kfVsfOSbJY0

Tue, 07/22/2014 - 09:52 | 4987564 udaman
udaman's picture

Fuck banks

Tue, 07/22/2014 - 11:40 | 4988127 Otto Zitte
Otto Zitte's picture

In USSA banks fuck you.

Tue, 07/22/2014 - 09:36 | 4987492 Madcow
Madcow's picture

"Sorry folks, but you got tricked fair and square and now its time to move on"

- Gov-Co

 

It will be hilarious to watch what happens to people who use bank accounts to accrue for taxes and mortgage payments. Their money will be stolen - and then they'll be hit with fines and jail time - HA!!  For Gov-Co, a win win win win win.  

 

"Its not enough that i succeed.  All the rest must die."  

- Atilla the Hun

Tue, 07/22/2014 - 11:45 | 4988133 Otto Zitte
Otto Zitte's picture

All these fucks are cashing out & moving to my zip code. One of the zip codes Obumble has targetted for extra taxation. Only they don't know I'm here so they aren't very discrete, just loud, rude and socially retarded. Ima fuckn dey sheeyt up.

Tue, 07/22/2014 - 09:12 | 4987408 SaudiMail
SaudiMail's picture

How about banks in Saudi and the UAE?  Will they be safe?

Tue, 07/22/2014 - 14:18 | 4989103 Uchtdorf
Uchtdorf's picture

The words "bank" and "safe" do not belong in the same post...well, except for mine wherein I explain the dangers of associating the concept of safety with the Satanic banksters who will steal your money and laugh about it over $300 lunches.

Tue, 07/22/2014 - 09:08 | 4987394 iamrefreshed
iamrefreshed's picture

"A crummy commercial? Son-of-a-bitch."

Tue, 07/22/2014 - 09:07 | 4987388 Spungo
Spungo's picture

New rule: everyone on the board on directors should be personally liable for bank deposits. Watch as banks mysteriously never have another bank failure from that point forward.

Actually, that WAS the law at one time. Banks were very stable during that time.

Tue, 07/22/2014 - 10:01 | 4987606 Peter Pan
Peter Pan's picture

Rule sounds good but they will get around it by putting their wealth into some form of trust or in the wife's name.

 

 

Did I say wife? 

Tue, 07/22/2014 - 08:51 | 4987316 esum
esum's picture

taking from the makers and giving to the takers... via the government skim for the pols

until the makers take out the middle man.......

Tue, 07/22/2014 - 08:51 | 4987310 Peter Pan
Peter Pan's picture

Banks are not too big to fail. All that is necessary is for the negative equity to be wiped off pro-rata against deposits and bonds and to issue depositors and bond holders ownership of the bank in percentages that reflect the loss on their deposits/bonds.

The previous bank owners can take a hike. At the same time the lenders receive relief which enables the unpayable portion of debts to be cleared rather than allowing them to continue running the system into the ground.

 

Tue, 07/22/2014 - 10:00 | 4987597 Peter Pan
Peter Pan's picture

Correction: I meant to say the "borrowers" receive relief.

Tue, 07/22/2014 - 08:41 | 4987264 DerAdler
DerAdler's picture

Just a reminder to the people in GB and Ireland that they had better watch out. The English elite have ever been the most hostile of any country in the Western world towards their own people. When it comes time, they will treat islanders worse than ever. And that's pretty bad.

Tue, 07/22/2014 - 08:49 | 4987305 Monty Burns
Monty Burns's picture

Correct.  My solution has been to withdraw large amounts of physical cash over a longish period and store it metaphorically under the mattress. I don't want to give these parasites one cent more than I have to.

Tue, 07/22/2014 - 08:40 | 4987262 falak pema
falak pema's picture

Bail ins is inevitable. But it should apply to the Tax Havened money of Corporates and Oligarchs.

Otherwise its the small sized entreprener and the pension funds held by the TBTF that will get bailed in.

30 Trillion of wealth in those tax havens and growing every day! 

Tue, 07/22/2014 - 08:02 | 4987158 Quinvarius
Quinvarius's picture

How does confiscating deposits to prop up TBTF address the issue of TBTF?

Tue, 07/22/2014 - 10:02 | 4987610 r0mulus
r0mulus's picture

is it not the only way to destroy the debt if you refuse to write it down or write it off in any form?
i'm sure it will be called "new freedom" or "progress" or something cool like that.

Tue, 07/22/2014 - 11:12 | 4987945 Colonel Klink
Colonel Klink's picture

Bank membership recapitalization fee, X% of what you have on deposit.  0% discount on anything you owe.

Tue, 07/22/2014 - 13:16 | 4988731 RafterManFMJ
RafterManFMJ's picture

Better get busy friends ... Time's a-wastin'.

Did not Spain just "tax" all deposits and make it RETROACTIVE to the First of the year?

Tue, 07/22/2014 - 14:46 | 4989278 Colonel Klink
Colonel Klink's picture

I believe so.  Good luck getting anything out of me through the banking system.  Fuck'em squarely in the ass, both the banks and the feral Federal thieving government.

Tue, 07/22/2014 - 07:51 | 4987146 AdvancingTime
AdvancingTime's picture

A bad haircut, in this case means you have been robbed. That may be the case if the government reaches in over a long weekend and steals money from your bank account. This is a horrible precedent to set, and the worst part may be how some people are letting it slip out that it would be fair, or in some way justifiable if it is only on the larger accounts.

It is fine if it only impacts the savings of someone else, the savings of what they see as "the wealthy", the problem is someday they may come for you. I shudder to think what kind of world our children will live in. Without a doubt this will cause money to shift to areas where laws protect savings from being ripped away during the night. More about what happened in Cyprus in the article below.

http://brucewilds.blogspot.com/2013/03/a-bad-haircut-seizing-bank-accoun...\

 

Tue, 07/22/2014 - 07:44 | 4987140 TeethVillage88s
TeethVillage88s's picture

Notice that British offshore Tax havens and Carribean Tax havens are not mentioned at all.

Channel Islands
Guernsey
Jersey
Cayman Islands
Bahamas
Bermuda Island
British Virgin Islands
American Virgin Island
Panama (home of Drug Money?)

I'm sure the House of Lords, Royalty, US Congress, Federal Reserve Members, UN Members, and diplomats from FSB, BIS, OECD, WB, IMF, ECB are all exempt due to Diplomatic Status.

Diplomatic Status for sale, Knight Bachelors available?

Tue, 07/22/2014 - 09:59 | 4987595 r0mulus
r0mulus's picture

Ever read Treasure Islands by Nicholas Shaxson?
I think you would find it very enlightening.

Do NOT follow this link or you will be banned from the site!