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European Union states are considering measures which would allow them to temporarily stop people withdrawing money from their accounts to prevent bank runs, an EU document reviewed by Reuters revealed.
The move is aimed at helping rescue lenders that are deemed failing or likely to fail, but critics say it could hit confidence and might even hasten withdrawals at the first rumors of a bank being in trouble.
The proposal, which has been in the works since the beginning of this year, comes less than two months after a run on deposits at Banco Popular contributed to the collapse of the Spanish lender
Giving supervisors the power to temporarily block bank accounts at ailing lenders is “a feasible option,” a paper prepared by the Estonian presidency of the EU said, acknowledging that member states were divided on the issue.
originally posted by: Tardacus
well, if people start to think that they won`t be able to get their money out of the bank they will STOP putting money into the bank and how is that going to help rescue struggling banks?
by telling people that that can`t take their money out of your bank you are guaranteeing that your bank will fail because nobody will be putting money into your bank ever again.
originally posted by: Tardacus
well, if people start to think that they won`t be able to get their money out of the bank they will STOP putting money into the bank and how is that going to help rescue struggling banks?
by telling people that that can`t take their money out of your bank you are guaranteeing that your bank will fail because nobody will be putting money into your bank ever again.
originally posted by: AMPTAH
originally posted by: Tardacus
well, if people start to think that they won`t be able to get their money out of the bank they will STOP putting money into the bank and how is that going to help rescue struggling banks?
by telling people that that can`t take their money out of your bank you are guaranteeing that your bank will fail because nobody will be putting money into your bank ever again.
Well, they are planning to eliminate cash. So, if you don't put your money into some bank, where is it going to go?
The banks make money from lending, not from people leaving money in their accounts.
originally posted by: Tardacus
a reply to: hopenotfeariswhatweneed
but the people don`t care how the banks make money they only care about being able to get their money back from the bank and if bank tells them they won`t get their money back, nobody is going to put anymore money into that bank.
originally posted by: tribal
holding onto cash is foolish anyway. Look at what the Elite do as soon as they hit it big....they buy tons of stuff! Get your money tied up into as many resources as possible.....real things that can be USED......mineral mining.....farming....land....food storage.....arms and ammunition....medicine.....seeds...all the prepper stuff......
get on it!
originally posted by: AndyFromMichigan
And, even if they ban cash, people will just start using another country's cash. Maybe US dollars, maybe Russian rubles, maybe British pounds.