This page has been archived and commenting is disabled.
Bail-Ins Coming - EU Gives Countries Two Months To Adopt Rules
Bail-Ins Coming - EU Gives Countries Two Months To Adopt Rules
- 11 countries face legal action if bail-in rules are not enacted within two months
- Bail-in legislation aims at removing state responsibility when banks collapse
- Rules place burden on creditors - among whom depositors are counted
- Austria abolished bank deposit guarantee in April
- “Bail-in regimes” coming globally

The European Commission has ordered 11 EU countries to enact the Bank Recovery and Resolution Directive (BRRD) within two months or be hauled before the EU Court of Justice, according to a report from Reuters on Friday.
The news was not covered in other media despite the important risks and ramifications for depositors and savers throughout the EU and indeed internationally.
The article "EU regulators tell 11 countries to adopt bank bail-in rules" reported how 11 countries are under pressure from the EC and had yet “to fall in line”. The countries were Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France and Italy.
France and Italy are two countries who are regarded as having particularly fragile banking systems.
The rules, known as the Bank Recovery and Resolution Directive (BRRD) ostensibly aim to shield taxpayers from the fall out of another banking crisis. Should such a crisis erupt governments will not be obliged to prop up the banks. At any rate most countries are far too deeply indebted to play such a role.
Instead, the burden is being placed on the creditors. As Reuters put it
The rules seek to shield taxpayers from having to bail out troubled lenders, forcing creditors and shareholders to contribute to the rescue in a process known as "bail-in".
However, if recent events in Austria are anything to go by, creditors now also include depositors of banks. In April, Austria enacted legislation which removed government liability for all bank deposits.
Until then, the state would protect deposits of ordinary people and companies up to a value of €100,000. In its place a bank deposit insurance fund is being set up. This fund appears inadequate to protect savers’ deposits in the event of any kind of bank failure. We covered the story in more detail here.
Each country will enact its own version of the BRRD. How vulnerable savers are in specific countries is difficult to tell at this time. The drive towards a cashless economy which has accelerated in recent months makes deposit holders and savers ever more vulnerable.
This bail-in legislation which is being driven by the BIS through the Bank of England, ECB, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) appears designed to protect banks by allowing them to confiscate deposits to prop them up rather than the noble stated objective - "to shield taxpayers".
Those who hold deposits in our banks are also taxpayers and have already paid tax in order to earn the money that is on deposit.
Allowing for the confiscation of deposits is a retrograde step and may be the last straw for an already enfeebled western banking system. It will also be very deflationary as a primary source of capital and demand - from companies and consumers - is confiscated.

Cyprus was devastated by bail-ins and has shown little sign of recovery.
Central banks claim to be attempting to avert deflation with QE and negative interest rates and not simply bailing out and aiding overly indebted banks.
However, the bail-in of deposits would again place the interests of banks over those of taxpayers and depositors. It would be very deflationary and could be the tipping point which pushes economies into a recession and depression.
However, the key insight from Cyprus and the coming move from bail-out regimes to bail-in regimes, is that a precedent has now been created in terms of deposit confiscation. Therefore, simply having deposits in a bank is no longer the safest way to save, protect capital and conservatively grow wealth.
Conservative wealth management, asset diversification and wealth preservation will again become important and gold will again have an important role to play in order to protect, preserve and grow wealth in the coming bail-in era.
Must-read Guides:
Protecting Your Savings In The Coming Bail-In Era
From Bail-Outs To Bail-Ins: Risks and Ramifications – Includes 60 Safest Banks In the World
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,186.60, EUR 1,067.23 and GBP 777.60 per ounce.
Yesterday's AM LBMA Gold Price was USD 1,188.75, EUR 1,083.17 and GBP 779.91 per ounce.
Gold climbed $4.10 or 0.34 percent yesterday to $1,193.40 an ounce. Silver rose $0.06 or 0.36 percent to $16.80 an ounce.
Gold in Singapore for immediate delivery edged down 0.2 percent to $1,191.40 an ounce near the end of the day, while gold in Switzerland ticked marginally higher.
Gold rallied a bit yesterday on the news of weak U.S. factory orders and a feeble U.S. dollar and falling stock markets, while the market looked for closure in the Greek debt negotiations.
News that Greece outlined an agreement to deliver to the Athens government strengthened the euro and saw the dollar come under pressure.
Top gold ETF holdings were seen at a five year low yesterday. SPDR Gold Trust, the world's largest gold exchange-traded fund, said its holdings fell 0.59 percent to 709.89 tonnes on Tuesday, the lowest since January.
Holdings of all gold ETFs are close to their lowest in nearly six years showing the very poor sentiment towards gold.
The current holding pattern on the gold price continues. The non farm payrolls number on Friday will be keenly watched for signs about how bad the slowdown in the U.S. is.
In late morning trading gold bullion is down 0.43 percent at $1,188.43 an ounce. Silver is off 0.76 percent at $16.64 an ounce and platinum is down 0.12 percent at $1,111.67 an ounce.
Breaking News and Research Here
- GoldCore's blog
- 13860 reads
- Printer-friendly version
- Send to friend
- advertisements -



$500 per day from the ATM takes a while but it's worth it.
Court of Justice, eh? Well, that's Orwellian. If they ever saw any justice, they'd faint. Meanwhile, back on the ranch; I bought back my S&P500 shorts today at zero-zero P&L; they were June Contracts and it's too late in the month now to fool around with them anymore. I bought two Dec. Silver Contracts this morning for $16.54 each; primarily owing to the full moon, and the fact that the price looks pretty backed up on the chart. Silver has a strong lunar correlation. Cheers.
No one should be keeping any more than a month's worth of bill payments in a bank. At this point, if you DON'T know that, there's no hope for you.
They are going to break the system...you can't know just when it will happen, just that it is imminent. When the system does finally come down, everything IN it also goes...Remember that, when it all falls, it takes your 401k, your pension, etc...not just your little bank account.
If you value it, get it out of the system, or kiss it goodbye.
I don't have over 100k Euros ... so yeah, the regulations are entirely irrelevant to me.
I already do not keep money on the bank . Only the minimum amount to pay recurring debt like Gas , electricity , taxes .
"The European Commission has ordered 11 EU countries to enact the Bank Recovery and Resolution Directive (BRRD) within two months or be hauled before the EU Court of Justice" That means you become "pisano" (friend of the family), or else.
Everyone recall TPTB said that cypress bails ins WERE NOT a template. Looks like it was a template.
Can we believe ANYTHING they say? EVER??? NO!!
only way this all ends is with revolts thru martial law - in blood - as usual
Sadly that's the only way governments listen. The founding fathers even put it in the Constitution. The people's ability to shrug off a corrupt and self serving government. The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants.
In 1935 FDR confiscated ALL gold from private holders. Obama is MUCH more circumspect.
It was 1933 and very little gold was confiscated.
Most people just surrendered it.
Gold was not taken to enrich the government (at least not as the primary reason) it was removed to allow a change in the monetary system. That is not the situation now and the government might just as well go for stocks or land as gold this time around. In the future countries will encourage gold ownership...but the dollar has to go first. For now the dollar is shamed by gold and it's price is kept low. That will change when the needed recapitalization happens.
Fofoa has explored these ideas for 7 years now and there is a lot of info on his blog. After 7 years it can be a bit much trying to tackle it...so if you want to understand, rather than just throwing out incorrect dates and incomplete thoughts...get reading
Next time, try to start with reasonably accurate history, rather than the nonsense that you just spewed.
What would you expect from Eric Holder other than bullshit?
Leave your money in the bank and it gets bailed-in. Take your FRN's out of the bank and it gets devalued. Buy PM's and watch as the PTB naked short PM's with all the Federal Reserve debt they can throw at it. It's a twisted world out there.
3 words
RARE COMIC BOOKS !!!!
gubbermint will NEVER confiscate funny books because that will make them just look plain silly
http://www.cnet.com/news/supermans-action-comics-no-1-sells-for-record-3...
I disagree, comic books are at the bureaucraps mental level, so they'll grab those first.....
That's just a Mickey Mouse investment.