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Bank Of England Leads Push For Deposit Confiscation - Japan, China, Russia Against Bail-Ins
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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the "bare" is gonna git u. also i blame bush, or christie, and i don t trust them pauls to take a bribe
Whoever created this graphic may look up the location of Singapore on a map...
Well one way Russia-China can revers sanction the US & UK .... buy lots of gold and silver contracts in the thinnest market and rocket the price $200 and $20
Watch bullion banks and BIS etc..... run around like headless chickens..
Fail all of them and let's just see WHO is too big to fail!
Deeper I dig
The more it looks like we follow the British Empire and UK Leadership. Could be the European Bankers that invaded the USA after each war.
UK has avg Household Debt of $200K, and hasn't had major investment in manufacturing or attempted to create jobs since Thatcher Protests. Today they have the same Protests of 1 million people. UK Had plenty of time to address it's economic problems.
Just like the USA. Willful Negligence. TARP, ZIRP, QE appear to be Willful Negligence just like deregulation of US Banks and allowing shadow banking with derivatives (cause of sub-prime crisis).
Banks own the US People as Assets. Or rather the Fed & the Federal Government as Corporations. Perhaps like admiralty law. Let in more Illegals & give them Amnesty to shore up our Balance Sheet with more Assets /s.
Augment this with ideas from communist china like government news (info management), Bail-Outs, Bail-Ins... oh wait preferential treatment for the higher class, the Lords, that sounds like neofeudalism for neofascism.
Perverse version of Lebensraum. Expand our living room (for Corporations) by taking social security private, Medicare Private, taking pensions and deposits for more capital to expand the economy through our biggest corporations & Biggest Banks.
Corporate Lebensraum
i really like the idea of "corporate persons" competing for living space. it seems a very apt way to describe the forces at work right now. great comment!
D
Bail-ins are already law in the U.S. - Dodd-Frank clearly spells it out in the Title II - Orderly Liquidation Authority
It's telling that Carney wants to “break the back” of the too big to fail issue, but not break the back of the too big to fail banks.
At what stage do the Sheeple wake up to the fact that with zero interest AND the risk of being bailed-in, it doesn;t make a whole lot of sense having savings in ANY Bank, let alone a TBTF. If the answer is "Never" then they deserve what is coming to them. ALternatively, if these too clever by far Banksters make the slightest slip, might we see massive Bank runs? But I suppose that is why they want the new rules in place urgently!! Then any Bank runs could be dealt with via a Bank Holiday over a long weekend and a bail-in fait accompli. Fuckers.
"Take to the sea in a Chinese junk
There ain't no ship that can't be sunk." - Little River Band
Um, one that's on land.
He does what he's told.
Meet the new boss....