Why Would You Keep Large Deposits In
Western Banks?
Posted July 1st, 2013 at 7:00 AM (CST) by Jim Sinclair & filed under General Editorial.
http://www.jsmineset.com/2013/07/01/why-would-you-keep-large-deposits-in-western-banks/
Dear CIGAs,
Why would anyone keep large deposits in any Bank in Western finance? Why would any sane person buy CDs at any level.
How could these so called insurance programs pay off in a systemic crisis? They simply could not in cash as they are guaranteeing more than their capital.
Banks must lose their depositors, innocent parties to the fraud committed by these institutions.
This is legalized theft.
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EU Pact Reached on Failing Banks
By GABRIELE STEINHAUSER And TOM FAIRLESS
Updated June 27, 2013, 7:00 a.m. ET
BRUSSELS—European Union finance ministers early Thursday agreed on new rules for dealing with failing banks in an effort to curtail the cost of taxpayer-funded bailouts.
After banking crises pushed several European countries to the brink of bankruptcy in recent years, most governments were eager to share the costs of downsizing or closing even big banks with their owners and creditors. The hope was also that predictable rules would push banks to take better precautions against risks and prevent the kinds of market shudders caused by unexpected losses for investors and savers in Spain and Cyprus over the past year.
But some governments were worried that overly rigid rules on imposing losses on investors and creditors—a so-called bail-in—could increase banks’ funding costs and destabilize Europe at a time it is still trying to exit from a yearslong financial crisis.
Ministers stressed that depositors with less than €100,000 ($130,820) in their accounts would always be safe, while small and midsize companies and bigger savers would only be hit during the most severe bank failures. As an extra layer of protection for taxpayers, governments will have to start building up resolution funds by collecting levies from banks.
Michael Noonan, the Irish finance minister who led the negotiations, said he and his counterparts managed to strike a balance that would shield taxpayers but leave countries with enough flexibility to protect their economies.
"I welcome the fact that taxpayers are now going to be protected by a bail-in mechanism rather than a bailout mechanism," he told reporters after almost 10 hours of discussions.
More…
http://www.jsmineset.com/2013/07/01/why-would-you-keep-large-deposits-in-western-banks/
Dear CIGAs,
Why would anyone keep large deposits in any Bank in Western finance? Why would any sane person buy CDs at any level.
How could these so called insurance programs pay off in a systemic crisis? They simply could not in cash as they are guaranteeing more than their capital.
Banks must lose their depositors, innocent parties to the fraud committed by these institutions.
This is legalized theft.
------------------------------------------------------------------------------------------------------------------
EU Pact Reached on Failing Banks
By GABRIELE STEINHAUSER And TOM FAIRLESS
Updated June 27, 2013, 7:00 a.m. ET
BRUSSELS—European Union finance ministers early Thursday agreed on new rules for dealing with failing banks in an effort to curtail the cost of taxpayer-funded bailouts.
After banking crises pushed several European countries to the brink of bankruptcy in recent years, most governments were eager to share the costs of downsizing or closing even big banks with their owners and creditors. The hope was also that predictable rules would push banks to take better precautions against risks and prevent the kinds of market shudders caused by unexpected losses for investors and savers in Spain and Cyprus over the past year.
But some governments were worried that overly rigid rules on imposing losses on investors and creditors—a so-called bail-in—could increase banks’ funding costs and destabilize Europe at a time it is still trying to exit from a yearslong financial crisis.
Ministers stressed that depositors with less than €100,000 ($130,820) in their accounts would always be safe, while small and midsize companies and bigger savers would only be hit during the most severe bank failures. As an extra layer of protection for taxpayers, governments will have to start building up resolution funds by collecting levies from banks.
Michael Noonan, the Irish finance minister who led the negotiations, said he and his counterparts managed to strike a balance that would shield taxpayers but leave countries with enough flexibility to protect their economies.
"I welcome the fact that taxpayers are now going to be protected by a bail-in mechanism rather than a bailout mechanism," he told reporters after almost 10 hours of discussions.
More…