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Wed Dec 30, 2015, 11:02 PM

Bail-Ins Begin: a Crisis Worse than ISIS? by Ellen Brown

http://ellenbrown.com/2015/12/29/a-crisis-worse-than-isis-bail-ins-begin/

While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US. Poverty also kills.

(snip)

At the end of November, an Italian pensioner hanged himself after his entire €100,000 savings were confiscated in a bank “rescue” scheme. He left a suicide note blaming the bank, where he had been a customer for 50 years and had invested in bank-issued bonds. But he might better have blamed the EU and the G20’s Financial Stability Board, which have imposed an “Orderly Resolution” regime that keeps insolvent banks afloat by confiscating the savings of investors and depositors. Some 130,000 shareholders and junior bond holders suffered losses in the “rescue.”

The pensioner’s bank was one of four small regional banks that had been put under special administration over the past two years. The €3.6 billion ($3.83 billion) rescue plan launched by the Italian government uses a newly-formed National Resolution Fund, which is fed by the country’s healthy banks. But before the fund can be tapped, losses must be imposed on investors; and in January, EU rules will require that they also be imposed on depositors. According to a December 10th article on BBC.com:

The rescue was a “bail-in” – meaning bondholders suffered losses – unlike the hugely unpopular bank bailouts during the 2008 financial crisis, which cost ordinary EU taxpayers tens of billions of euros.

Correspondents say [Italian Prime Minister] 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.

. . . [L]etting 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”.

That is what is predicted for 2016: massive sacrifice of savings and jobs to prop up a “systemically risky” global banking scheme.

Bail-in Under Dodd-Frank

That is all happening in the EU. Is there reason for concern in the US?

Keep reading..........THen think about using a Credit Union instead of a bank.

20 replies, 2094 views

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Arrow 20 replies Author Time Post
Reply Bail-Ins Begin: a Crisis Worse than ISIS? by Ellen Brown (Original post)
Ferd Berfel Dec 2015 OP
safeinOhio Dec 2015 #1
leveymg Dec 2015 #3
safeinOhio Dec 2015 #4
leveymg Dec 2015 #5
hollysmom Dec 2015 #6
Nye Bevan Dec 2015 #8
hollysmom Dec 2015 #9
Nye Bevan Dec 2015 #10
hollysmom Dec 2015 #11
Nye Bevan Dec 2015 #13
rhett o rick Dec 2015 #17
Nye Bevan Dec 2015 #7
rhett o rick Dec 2015 #12
Nye Bevan Dec 2015 #14
jamzrockz Dec 2015 #15
safeinOhio Dec 2015 #20
GummyBearz Dec 2015 #19
leveymg Dec 2015 #2
pansypoo53219 Dec 2015 #16
Ferd Berfel Dec 2015 #18

Response to Ferd Berfel (Original post)

Wed Dec 30, 2015, 11:09 PM

1. Banks may be safer than the stock market

FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA), time deposit such as a certificate of deposit (CD), or an official item issued by a bank, such as a cashier's check or money order.
FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit.The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank.

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Response to safeinOhio (Reply #1)

Wed Dec 30, 2015, 11:13 PM

3. But FDIC only covers up to a limit. $100K I recall.

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Response to leveymg (Reply #3)

Wed Dec 30, 2015, 11:21 PM

4. Then I'm covered

but I think they raised it to $250K.

I also think it is per bank, so don't put all your eggs in the same bank.

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Response to safeinOhio (Reply #4)

Wed Dec 30, 2015, 11:30 PM

5. I'm so reassured.

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Response to safeinOhio (Reply #4)

Wed Dec 30, 2015, 11:54 PM

6. FDIC can't cover it all, when a big bank goes down it will strip it of every cent.

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Response to hollysmom (Reply #6)

Thu Dec 31, 2015, 12:19 AM

8. Nope.

Every cent of every deposit up to the FDIC limit will be paid to the depositor.

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Response to Nye Bevan (Reply #8)

Thu Dec 31, 2015, 12:33 AM

9. until it goes broke.

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Response to hollysmom (Reply #9)

Thu Dec 31, 2015, 12:40 AM

10. It's backed by the full faith and credit of the US government.

If necessary they will borrow or print the money.

In addition, the FDIC is backed by the "full faith and credit of the United States government." This means that the resources of the U.S. government stand behind FDIC-insured depositors and, even if the FDIC loses all of its money due to bank failures, the federal government will cover any losses.

http://banking-law.lawyers.com/consumer-banking/the-fdic-can-it-go-bankrupt.html




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Response to Nye Bevan (Reply #10)

Thu Dec 31, 2015, 12:47 AM

11. knowing the current congress as I am sure you do

if this requires any voting by them, do you think what ever will pass? You are entitled to the money, but you know who has been treating entitlement as a bad word.

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Response to hollysmom (Reply #11)

Thu Dec 31, 2015, 12:54 AM

13. This is already in place, and does not require any new votes.

Again, one thing you do not have to ever worry about is your FDIC insured bank deposit up to the limit.

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Response to Nye Bevan (Reply #10)

Thu Dec 31, 2015, 11:55 AM

17. Can't Congress change that in an "emergency"? nm

 

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Response to safeinOhio (Reply #4)

Thu Dec 31, 2015, 12:18 AM

7. Yep, $250k per depositor. And a married couple can protect even more.

If they have 3 accounts, one in the husband's name only with $250k, one in the wife's name only with $250k, and a joint account with $500k, the entire $1 million will have FDIC protection.

http://www.bankrate.com/finance/savings/fdic-insures-bank-deposits-to-250-000-1.aspx

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Response to safeinOhio (Reply #4)

Thu Dec 31, 2015, 12:51 AM

12. If I remember the new $250k limit is temperory but not sure. Also, if you are married,

 

both you and your spouse can get the limit, again I believe.

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Response to rhett o rick (Reply #12)

Thu Dec 31, 2015, 12:55 AM

14. Originally it was temporary but they made it permanent.

http://www.marketwatch.com/story/fdic-insurance-coverage-upped-permanently-to-250k-2010-07-21

And married couples can get a total of $1 million insured per bank by having 3 accounts as explained above.

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Response to safeinOhio (Reply #1)

Thu Dec 31, 2015, 01:00 AM

15. The problem with banks

 

is that even if the money is not confiscated, inflation reduces the value of the deposit 3-5% every year. Which is definitely worse than return the average investor will get from investing in stocks.

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Response to jamzrockz (Reply #15)

Thu Dec 31, 2015, 02:22 PM

20. True that, but

no risk, compared to stocks, in banks. Inflation has been more like 1 and a half to 2%. Deflation is more likely. Inflation is more likely in an expanding economy.

I wouldn't put all of my savings in any one place.

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Response to safeinOhio (Reply #1)

Thu Dec 31, 2015, 02:03 PM

19. Banks pay a marginal amount more interest than burying my money in my back yard

 

And the risk is starting to seem higher...

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Response to Ferd Berfel (Original post)

Wed Dec 30, 2015, 11:11 PM

2. This is the sort of stupid stuff that leads to runs on banks

And financial panics. But hey who cares about depositors. They're small enough to fail.

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Response to Ferd Berfel (Original post)

Thu Dec 31, 2015, 04:42 AM

16. HOW is this NOT stealing? FUCK INVESTORS> they do not get a GUARANTEE OF WINNING! its GAMBLING.

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Response to pansypoo53219 (Reply #16)

Thu Dec 31, 2015, 01:58 PM

18. What pansypoo53219 said



IT's fucking GAMBLING. FUCK YOU.

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