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Bail-Ins “Undermine Confidence” In Banks - Lead to Suicide of Pensioner
Bail-Ins “Undermine Confidence” In Banks - Lead to Suicide of Pensioner
Bank 'bail-ins' and the new international bail-in regime that impose losses on bank investors, bondholders and even depositors may undermine the confidence of small savers in the banking system, a senior Bank of Italy official warned on Wednesday.
Protect Your Savings From The Wrecking Ball
"The bail-in can exacerbate - rather than alleviate - the risks of systemic instability caused by the crisis of individual banks," Carmelo Barbagallo, head of supervision at the central bank, astutely noted during a hearing before the Chamber of Deputies in Italy according to Reuters:
"It can undermine confidence, which is the essence of banking; transfer the costs of the crisis from taxpayers at large to a smaller category of people no less worthy of protection - small investors, pensioners - who directly or indirectly invested in bank liabilities" said Barbagallo.
The comments are notable as they are the first time that a central bank official in the EU, and indeed, internationally has voiced concerns about the coming bail-in regime and the impacts on ordinary citizens - small businesses, investors, savers and pensioners.
Central bank supervisor, Barbagallo is an interesting character in that he does not appear to be your typical central banker - most of whom today seem to be career bankers with Goldman Sachs and other Wall Street or City of London bankers. Indeed, his background is as a worker who rose through the ranks to become a senior trade union official.
In that capacity, he has been courageous and unafraid to take on corrupt vested interests including the mafia in Sicily. He has denounced crime and intimidation by the Mafia which have resulted in attempts on his life according to Wikipedia.
We have long warned of the failure to understand the negative impact that bail-ins will wreak on western society and the real world consequences on middle class savers and investors and even more importantly on the small to medium enterprise sector - the backbone of most economies internationally.
A tragic example of this was seen in Italy in recent days when a pensioner committed suicide after having his life savings wiped out in a bank bail-in.
A pensioner from near Rome, hanged himself after his €100,000 (£72,000; $110,000) investment in Banca Etruria bonds were wiped out in a bail-in. A suicide note was left by the pensioner criticising the bank.
Italian Prime Minister Matteo Renzi has defended his government's rescue of four Italian banks - but voiced sadness over an elderly investor's suicide. Mr Renzi said the €4 billion rescue last month had to be done otherwise thousands of jobs would have been lost. About 130,000 bank shareholders and bondholders lost their investments.
The leader of the far-right opposition Northern League, Matteo Salvini, called the pensioner's death "state suicide" in a tweet.
"A pensioner kills himself because he lost his life savings due to Banca Etruria and the absent government. State suicide," his tweet said.
Correspondents say Mr Renzi acted quickly because in January, the EU is tightening the rules on bank rescues - they will force losses on depositors holding more than €100,000, as well as bank shareholders and bondholders.
Central bank supervisor Carmelo Barbagallo, quoted by Reuters news agency, said letting the four banks fail under those new EU rules next year would have meant "sacrificing the money of one million savers and the jobs of nearly 6,000 people".
Mr Renzi said he supported a parliament decision to investigate "what has happened in the Italian and European banking systems in the last few years". He called for "every effort" to "clarify the responsibilities of the past".
The EU is at an advanced stage in forcing countries to ratify bail-in legislation. The legislation is being devised to protect the larger banks against the interests of depositors, taxpayers and the wider economy.
The various “state guarantees” for deposits or deposit insurance (generally a big round figure of €100,000 in most EU states and £75,000 in the UK) is purely arbitrary and has lulled the public into a false sense of security. The “guaranteed” amount can be adjusted lower with the stroke of a pen.
The ramifications of bail-ins have not been thought through. With central banks taking unprecedented measures ostensibly to fight deflation, it is important to realise that bail-ins would create massive deflation as they would impact hugely on consumer, investor and business confidence.
By taking cash and capital from savers, investors, pensioners - and especially small and medium enterprises - there would be very negative consequences for future spending and investment, consumer confidence, trade and commerce that would likely lead to a another deflationary spiral.
Diversification of savings and investments remains the best way to protect against the coming bail-in regime.
Read more on the GoldCore.com blog
DAILY PRICES
Today’s Gold Prices: USD 1067.20, EUR 973.86 and GBP 704.93 per ounce.
Yesterday’s Gold Prices: USD 1072.00, EUR 979.44 and GBP 706.40 per ounce.
(LBMA AM)
Gold fell by a dollar yesterday to close the day at $1071.70. Silver lost $0.04 to $14.11. Platinum lost $2 to $852.
Gold prices are drifting lower today, after closing flat over the last two sessions. Silver is also lower, trading close to $14. Platinum is lower too but palladium has eked out a 1% gain.
Gold fell to a session low of $1,062.90/oz and looks vulnerable to further falls to the recent low of $1,053.20/oz as markets fixate on the Federal Reserve interest rate decision next Wednesday.
Declining activity in the U.S. federal funds futures market in recent weeks signal doubts whether the Fed will be able to achieve a higher target range when it attempts to end its ZIRP (zero interest rate policy) experiment.
Should the much heralded and anticipated 25 basis point rise materialise as is expected, then we expect gold could show further weakness and test support which is likely to be seen at the $1,000/oz level.
Given the very poor technical position, poor sentiment in western markets and momentum - which can be a powerful thing - $1,000/oz gold seems quite possible and gold appears to be gravitating to this big round number.
Chinese New Year looms and demand from China should provide support above the $1,000 level and should spur gains in January. Another pillar of support is very strong demand for bullion - particularly from Germany, India and China.
The current bout of weakness is another opportunity to acquire gold on the dip and geometrically dollar cost averaging remains the prudent way to acquire an allocation to gold.
IMPORTANT NEWS
China Goes for Gold as Central Bank Expands Reserves – WSJ
Gold poised for 7th drop in eight weeks on U.S. rate hike bets – Reuters
Commodity Faithful See Some Hope Next Year After 2015 Heartbreak – Bloomberg
US budget deficit widened in November – WRAL.com
Viking hoard discovery reveals little-known king ‘airbrushed from history’ – The Telegraph
IMPORTANT ANALYSIS
The junk #bond market’s early warning signs are all flashing red for the #global #economy –The Telegraph
Gold and currency market rigging controls the world – GATA
Le Pen V Draghi – Will France Leave Euro? – David McWilliams
Corporate Insiders Are Dumping Their Stock – Dollarcollapse.com
Massive insider selling spurs stock market concerns – CNBC
Read more News & Commentary on GoldCore.com
Must Read Bail-In Guides:
From Bail-Outs To Bail-Ins: Risks And Ramifications
Protecting Your Savings In The Coming Bail-In Era
Breaking News and Research Here
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So "bail-ins would create massive deflation as they would impact hugely on consumer, investor and business confidence."
BUT...
"The current bout of weakness is another opportunity to acquire gold on the dip"
How much crack do you have to smoke before gold looks like a good investment in the face of deflation?
Sweet Jeezus you people need help.
Another thing that savers have to be concerned about: that the govt will start taxing hiterto tax exempt retirement accounts. The possibilty of that increases as govt spending increases. Thus the main reason to keep govt spending down: to make tax increases less likely.
In the example above, the bank customer was invested in something called Banca Etruria bonds. This is not the typical situation we would normally think of as a typical bail in, where people with traditional savings or checking accounts are hit. If a bank entices you or coerces you to buy some type of bonds, even if it's for their own institution, you should either remove all your money from that institution or get ready to accept your losses. If this guy couldn't afford the loss it was extremely bad investment on his part. Unless the bank misrepresented the risk.
Agreed. These heavy metal dealers are not credible. They keep twisting facts to support a narrative that entices chumps and suckers into buying the wrong investment. It's unethical and when people figure it out, these dealers are going to get their butts sued off. Serves them right.
http://www.xe.com/currencytables/?from=XAU&date=2015-12-12
To see how much paper is printed, take a look at this table, don't forget to spot the 'odd' ones...
Also maybe ask yourself, on creation, did they started with 1.000 or 1.000.000 bill values...
In a little while from now
If I'm not feeling any less sour
I promise myself to treat myself
And visit a nearby tower
And climbing to the top
Will throw myself off
In an effort to
Make it clear to whoever
Wants to know what it's like
When you're shattered
Left standing in the lurch at a church
Were people saying, My God, that's tough
She stood him up
No point in us remaining
We may as well go home
As I did on my own
Alone again, naturally
To think that only yesterday
I was cheerful, bright and gay
Looking forward to who wouldn't do
The role I was about to play
But as if to knock me down
Reality came around
And without so much as a mere touch
Cut me into little pieces
Leaving me to doubt
Talk about, God in His mercy
Oh, if he really does exist
Why did he desert me
In my hour of need
I truly am indeed
Alone again, naturally
Thank you Gilbert
always keep a record of where "people" that handle your assets, ie: bank executives, brokers, trust fund managers, attorneys, etc., LIVE....just in case one day you might have to infringe on their civil rights.........
Anyone dumb enough to save money in a bank deserves everything they get.
"PEOPLE TAKE NOTICE"
Bail ins are very near and will come to a bank near you. The 2008 fiasco will be much different this time. The banks consider all assets to be their own and this most certainly means your savings accounts and any money being held by the banks.
When you deposit this money the banks consider it their own property and nobody elses. They will never tell anyone this fact but it is true.
There is no need for banks to be in their present form. There is no need to bail the banks out and they should be left to fail. The government should guarantee a large amount of your assets but forget about the banks. The banks should not be guaranteed their survival when they take such risks as they do today but the people should be allowed to continue their existence.
The USA, Canada and many other countries have roughly the same regulations in place that expose the savings of the banking customer. These regulations have been put in place because they plan to use them.
Good Luck!!
The suicide of an elder is what Statists call "a good start".
Draghi needs to burn in the hottest place in Hell the fuckin' devil can find for him.................................
Too bad the elderly pensioner did not pay a visit to the scum who ruined his life. They do not have the death penalty in Italy, do they?
That's why I use the terms lyin' stealin' and killin'. The Ten Commandments were scrambled to benefit the Churches. The real order is; 1) Don't lie, 2) Don't steal, and 3) Don't murder. If people can't do the first three, the other seven really don't matter. The state killed that pensioner indirectly, but just as surely as they had put the rope around his neck. Governments were created to protect their people from the bullies, not to become the prime bully. Bully is just another word for sociopath, the real terrorist.
My neighbor's husband recently died, and she discovered that he had a credit card that she did not know about--and he had 20,000 of debt on the card. She had an account with the same bank (I think a savings account) with $6,000 in it.
$5,000 was removed from her account without notice. She said that she no longer puts money in her account. This is Washington state.
Is that legal? You can't just take money from one person's account to offset another's debt......surely?
I think they probably can. Washington is a community property state so the husband's debts are the wife's debts as well.
Was her husband also on that same account?
Real question, I live in Washington state.
The amount has already been lowered in the UK from £85K to £75K!
Poignant and sad, these elderly who learned to Trust Government as they would a loving shepherd.
Banksters are really lucky that almost all people have a strong resistance to killing.
But it's not really luck is it? Parasites always evolve to take advantage of the features of the host where they can survive best.
Banksters are a foreign species to Human Beings.
Gold is the ONLY unencumbered asset. As this poor brainwashed pensioner found out, bonds are NOT SAFE!
It can be easily encumbered by government edicts of confiscation and bans on spending it.
Gold can readily be fabricated into jewelry. Do you know of any case in human history where jewelry was banned by a government?
>>Do you know of any case in human history where jewelry was banned by a government?
Greeks have recently been asked to declare jewelry on a new doomsday list waiting for the gov to tax what's already been taxed so yer they have...
So can everything else, too. What's that old saying:
"Any government that can give you everything you want can take everything you have."
But in India, their government is talking confiscation of gold. Population control?
Yes - Piss off the populace and the population will be reduced by a large number of politicians.
My New Years resolution. ..
I won't go "Balls Deep" in any bank from now on.
Sounds like something Charlie Sheen would say.......from now on