I am on a mission to inform you, yet you look the other way as if asleep. Why?
http://www.jsmineset.com/2013/06/13/in-the-news-today-1567/
Dear CIGAs,
But you still you do nothing. Why?
You do not diversify. Why?
You do not direct register? Why?
You still do not certificate. Why?
You let ignorant brokers talk you out of protecting yourself. Why?
You keep you shares in street name of CEDE and Company and do not even know it. Why?
You trust computer based banks. Why?
Everything you have done with a computer based banks is in public record and that is no problem for you. Why?
You do not even attend my Q&A sessions. Why?
I am on a mission to inform you, yet you look the other way as if asleep. Why?
Japan to adopt ‘bail-ins,’ force bank losses on investors if needed, Nikkei says
Tue, Jun 11, 2013 2:19 PM EDT
Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a "bail-in," according to The Nikkei. Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases, the report noted.
More…
========================================================Jim Sinclair’s Commentary
How can you question me about Bail-In as a certainty when you are now seeing it everywhere?
For those that can afford the time and $50 why do you not meet with me? You would rather have 83% of your funds in financial organizations blocked with no alternatives?
ECB Coeure: Moving from Bail-Out to Bail-In Environment
June 12, 2013, 9:21 a.m. ET
BERLIN–Europe is currently moving from a bail-out environment to a bail-in environment when it comes to rescuing failing banks, a member of the European Central Bank’s executive board said Wednesday.
In designing a common bank resolution mechanism for Europe, European Central Bank policymaker Benoit Coeure said making shareholders and investors, rather than taxpayers, pay for the mistakes made by banks will lead to a fairer and sounder environment.
"Before deciding on the architecture of resolution and recovery, we need to know who’s going to pay," Mr Coeure said.
Cautioning that Europe lacks urgency on creating a more resilient central governance and reform to spur growth, the central banker said "it seems like it’s going to take decades. This is a worry–we don’t have decades."
Separately, Mr Coeure said that central bank independence is under strain in Europe, as "we see a rise of nationalistic temptations everywhere in Europe."
More…
Jim Sinclair’s Commentary
Why are you not protecting yourself against Bail-in?
Basel paper offers new look at bail-in models for ailing institutions
June 12, 2013
By Bora Yagiz, Compliance Complete
NEW YORK, June 12 (Thomson Reuters Accelus) – A recent Bank for International Settlements (BIS) quarterly review article attempts to solve the too-big-to-fail (TBTF) problem without causing systemic disruption to financial markets, by offering a new resolution template to recapitalize banks on the verge of bankruptcy. It may, however, inadvertently legitimize a de facto bail-in model against the consent of depositors, and put their money at risk.
Since the financial crisis of 2008, regulators worldwide have sought to reduce the likelihood of a TBTF failure through increase in capital quality and quantity enshrined internationally in Basel III, as well as setting various resolution mechanisms set to wind down failing institutions.
The U.S. regulators have taken two major specific steps, in the context of the Dodd-Frank financial regulatory overhaul. They have imposed prudential supervision rules with stringent capital, liquidity and leverage requirements for systemically important financial institutions (SIFIs). They have created a living-will process, where each large institution is supposed to detail its operations, its subsidiaries and write a concrete plan for how it could be wound down if it goes bankrupt. Additionally, The Federal Deposit Insurance Corporation (FDIC) was entrusted with the orderly liquidation authority to take ownership of SIFIs when they cease to be solvent.
Yet, the liquidation authority and the living will ideas suffer from a dilemma, in that the regulators will be reluctant in publicly announcing an institution’s financial death as this may cause a run on other institutions. The beefed up capital levels are, after all, dependent on the public perception of banks’ solvency, which, may well be deemed to be insufficient in time of crisis. Neither of these measures answers the questions of how the recapitalization would be funded, and how the losses would be allocated among debtors and creditors.
The article is by Paul Melaschenko and Noel Reynolds, members of the secretariat of the Basel Committee on Banking Supervision. The authors seek to clarify the clarify these questions by advocating a creditor-funded resolution mechanism, whereby taxpayers would not be on the hook in case of the bank’s failure. Instead, the authors of the article argue, the shareholders and the uninsured creditors would have to fill in the gap, all the while respecting the hierarchy of claims that existed before the occurrence of the failure. Critically, this process would take place over a weekend, thus leaving less room for a possible financial contagion.
Specifically, ownership of the SIFI that reaches the point of failure would first be transferred to a new holding company. The resolution authority would then write off all of the subordinated liabilities, along with some of the senior unsecured uninsured liabilities, for which the authority would have to make the calculations. The equity, and the written-off liabilities would be transformed as the new claims of the failed bank’s investors as liabilities and equity of the new holding company. After the weekend cleanup, the SIFI would open for business as a going concern, and the recapitalized holding company would be put up for sale, the proceeds from which would be distributed to the former investors of the creditors.
More…
Jim Sinclair’s Commentary
More on Bail-in. What are you waiting for, it to be too late?
"The bail-in framework will establish an order for how losses are distributed when banks are closed."
Handelsbanken expects to set capital ratio target by year-end
By Oskar von Bahr and Mia Shanley
STOCKHOLM | Thu Jun 13, 2013 2:21pm EDT
(Reuters) – Sweden’s Handelsbanken (SHBa.ST) will set a target for its key capital levels by the end of the year, the chief financial officer said on Wednesday, a move that could pave the way to return funds to shareholders.
With a core tier one capital ratio of 17.5 percent, Handelsbanken is already one of Europe’s strongest lenders. Its low-risk profile has meant it has had non-stop access to some of the cheapest funding costs in Europe.
Ulf Riese, who became CFO in 2007, said it was important for Handelsbanken first to see how European bank resolution and recovery rules would look before setting a capital goal. His is the only major Swedish bank yet to set such a target.
"The (European) resolution mechanism is the most important part," Riese told Reuters in an interview. He said the bank needed to know what framework it would operate in.
Europe’s bail-in framework – the bank recovery and resolution directive – will regulate how national authorities handle any winding down of struggling banks.
More…
JAPAN: WE WIll FORCE BANK LOSSES ON INVESTORS VIA BAIL-INS
June 13th, 2013
We now know that ‘muddle through’ is over, and just as we noted here “there may only be painful ways out of this crisis” as we evidenced by Europe’s attack on Cypriot depositors.
With the pillars of Abenomics starting to crumble, it seems plans are afoot to prepare for the bank failures that will come from a BoJ-inspired out-of-control bond market.
As Nikkei reports, Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in.”
More…
=========================================================
Japan to adopt ‘bail-ins,’ force bank losses on investors if needed, Nikkei says
Tue, Jun 11, 2013 2:19 PM EDT
Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a "bail-in," according to The Nikkei. Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases, the report noted.
More…
Dear Mr. Sinclair,
Thank you for everything you do! I hope this finds you well.
Looking over my YouTube subscriptions this morning, I came across a very boring but also very telling presentation by Credit Suisse’s former head of risk management endorsing the bail-in model as the only feasible alternative to TBTF. He ends by saying we must get beyond our antiquated devotion to depositor sanctity and work with the regulators and Fed if we are to prevent future systemic risk. He takes the Irving Fisher view of the Great Depression and basically applies it to the 2007-2008 crisis – a huge bank run, albeit an electronic one. He dissects my one-time employer’s (Lehman) balance sheet to show the role SWAPs played in bringing the down the house. All told, I think this provides more evidence of where the system means to move: bail-ins are coming.
Dear CIGAs,
But you still you do nothing. Why?
You do not diversify. Why?
You do not direct register? Why?
You still do not certificate. Why?
You let ignorant brokers talk you out of protecting yourself. Why?
You keep you shares in street name of CEDE and Company and do not even know it. Why?
You trust computer based banks. Why?
Everything you have done with a computer based banks is in public record and that is no problem for you. Why?
You do not even attend my Q&A sessions. Why?
I am on a mission to inform you, yet you look the other way as if asleep. Why?
Japan to adopt ‘bail-ins,’ force bank losses on investors if needed, Nikkei says
Tue, Jun 11, 2013 2:19 PM EDT
Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a "bail-in," according to The Nikkei. Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases, the report noted.
More…
========================================================Jim Sinclair’s Commentary
How can you question me about Bail-In as a certainty when you are now seeing it everywhere?
For those that can afford the time and $50 why do you not meet with me? You would rather have 83% of your funds in financial organizations blocked with no alternatives?
ECB Coeure: Moving from Bail-Out to Bail-In Environment
June 12, 2013, 9:21 a.m. ET
BERLIN–Europe is currently moving from a bail-out environment to a bail-in environment when it comes to rescuing failing banks, a member of the European Central Bank’s executive board said Wednesday.
In designing a common bank resolution mechanism for Europe, European Central Bank policymaker Benoit Coeure said making shareholders and investors, rather than taxpayers, pay for the mistakes made by banks will lead to a fairer and sounder environment.
"Before deciding on the architecture of resolution and recovery, we need to know who’s going to pay," Mr Coeure said.
Cautioning that Europe lacks urgency on creating a more resilient central governance and reform to spur growth, the central banker said "it seems like it’s going to take decades. This is a worry–we don’t have decades."
Separately, Mr Coeure said that central bank independence is under strain in Europe, as "we see a rise of nationalistic temptations everywhere in Europe."
More…
Jim Sinclair’s Commentary
Why are you not protecting yourself against Bail-in?
Basel paper offers new look at bail-in models for ailing institutions
June 12, 2013
By Bora Yagiz, Compliance Complete
NEW YORK, June 12 (Thomson Reuters Accelus) – A recent Bank for International Settlements (BIS) quarterly review article attempts to solve the too-big-to-fail (TBTF) problem without causing systemic disruption to financial markets, by offering a new resolution template to recapitalize banks on the verge of bankruptcy. It may, however, inadvertently legitimize a de facto bail-in model against the consent of depositors, and put their money at risk.
Since the financial crisis of 2008, regulators worldwide have sought to reduce the likelihood of a TBTF failure through increase in capital quality and quantity enshrined internationally in Basel III, as well as setting various resolution mechanisms set to wind down failing institutions.
The U.S. regulators have taken two major specific steps, in the context of the Dodd-Frank financial regulatory overhaul. They have imposed prudential supervision rules with stringent capital, liquidity and leverage requirements for systemically important financial institutions (SIFIs). They have created a living-will process, where each large institution is supposed to detail its operations, its subsidiaries and write a concrete plan for how it could be wound down if it goes bankrupt. Additionally, The Federal Deposit Insurance Corporation (FDIC) was entrusted with the orderly liquidation authority to take ownership of SIFIs when they cease to be solvent.
Yet, the liquidation authority and the living will ideas suffer from a dilemma, in that the regulators will be reluctant in publicly announcing an institution’s financial death as this may cause a run on other institutions. The beefed up capital levels are, after all, dependent on the public perception of banks’ solvency, which, may well be deemed to be insufficient in time of crisis. Neither of these measures answers the questions of how the recapitalization would be funded, and how the losses would be allocated among debtors and creditors.
The article is by Paul Melaschenko and Noel Reynolds, members of the secretariat of the Basel Committee on Banking Supervision. The authors seek to clarify the clarify these questions by advocating a creditor-funded resolution mechanism, whereby taxpayers would not be on the hook in case of the bank’s failure. Instead, the authors of the article argue, the shareholders and the uninsured creditors would have to fill in the gap, all the while respecting the hierarchy of claims that existed before the occurrence of the failure. Critically, this process would take place over a weekend, thus leaving less room for a possible financial contagion.
Specifically, ownership of the SIFI that reaches the point of failure would first be transferred to a new holding company. The resolution authority would then write off all of the subordinated liabilities, along with some of the senior unsecured uninsured liabilities, for which the authority would have to make the calculations. The equity, and the written-off liabilities would be transformed as the new claims of the failed bank’s investors as liabilities and equity of the new holding company. After the weekend cleanup, the SIFI would open for business as a going concern, and the recapitalized holding company would be put up for sale, the proceeds from which would be distributed to the former investors of the creditors.
More…
Jim Sinclair’s Commentary
More on Bail-in. What are you waiting for, it to be too late?
"The bail-in framework will establish an order for how losses are distributed when banks are closed."
Handelsbanken expects to set capital ratio target by year-end
By Oskar von Bahr and Mia Shanley
STOCKHOLM | Thu Jun 13, 2013 2:21pm EDT
(Reuters) – Sweden’s Handelsbanken (SHBa.ST) will set a target for its key capital levels by the end of the year, the chief financial officer said on Wednesday, a move that could pave the way to return funds to shareholders.
With a core tier one capital ratio of 17.5 percent, Handelsbanken is already one of Europe’s strongest lenders. Its low-risk profile has meant it has had non-stop access to some of the cheapest funding costs in Europe.
Ulf Riese, who became CFO in 2007, said it was important for Handelsbanken first to see how European bank resolution and recovery rules would look before setting a capital goal. His is the only major Swedish bank yet to set such a target.
"The (European) resolution mechanism is the most important part," Riese told Reuters in an interview. He said the bank needed to know what framework it would operate in.
Europe’s bail-in framework – the bank recovery and resolution directive – will regulate how national authorities handle any winding down of struggling banks.
More…
JAPAN: WE WIll FORCE BANK LOSSES ON INVESTORS VIA BAIL-INS
June 13th, 2013
We now know that ‘muddle through’ is over, and just as we noted here “there may only be painful ways out of this crisis” as we evidenced by Europe’s attack on Cypriot depositors.
With the pillars of Abenomics starting to crumble, it seems plans are afoot to prepare for the bank failures that will come from a BoJ-inspired out-of-control bond market.
As Nikkei reports, Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in.”
More…
=========================================================
Japan to adopt ‘bail-ins,’ force bank losses on investors if needed, Nikkei says
Tue, Jun 11, 2013 2:19 PM EDT
Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a "bail-in," according to The Nikkei. Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases, the report noted.
More…
Dear Mr. Sinclair,
Thank you for everything you do! I hope this finds you well.
Looking over my YouTube subscriptions this morning, I came across a very boring but also very telling presentation by Credit Suisse’s former head of risk management endorsing the bail-in model as the only feasible alternative to TBTF. He ends by saying we must get beyond our antiquated devotion to depositor sanctity and work with the regulators and Fed if we are to prevent future systemic risk. He takes the Irving Fisher view of the Great Depression and basically applies it to the 2007-2008 crisis – a huge bank run, albeit an electronic one. He dissects my one-time employer’s (Lehman) balance sheet to show the role SWAPs played in bringing the down the house. All told, I think this provides more evidence of where the system means to move: bail-ins are coming.
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I hope this helps in your struggles to warn the public.
Look forward to meeting you at some point.
All the best,
CIGA Sebastian
Look forward to meeting you at some point.
All the best,
CIGA Sebastian