EU set for more Cyprus-style bail-ins for troubled banks

For anyone who believes that it's is just the US struggling with financial implosion they better take another look. Remember the Cyprus banking failure and bail-ins? Depositor haircuts for all deposits above Є100K. Those deposit confiscations totaled as high as 50 - 75% for any deposits above Є100K.

Well now it looks to be officially expanded to the entire EU. That's right, if you work hard and put your money in bank and they make lousy investments with it and fail guess who gets to bail them out? Yep you the faithful depositor. Small or medium sized business owner? Then you are a prime target for future confiscations.

EU set for more Cyprus-style bail-ins for troubled banks

European finance ministers have reached the basis of an agreement to wind down failing banks and share the costs, Eurogroup President Jeroen Dijsselbloem told CNBC following a 16-hour marathon negotiating session in Brussels.

The agreement is expected to begin with a Cyprus-style “bail-in” process in which major depositors in failing banks are tapped first in an effort to support the lender.

There are additional parts to this new banking agreement but from what I can tell part of it appears as a simple tax payer bailout. Wonderful eh? Either the depositors get hosed or everyone does, what a choice.

Then, if more cash is needed, national resolution funds would be used. And if further funds are needed, these would be pooled from across the region over the next five to 10 years, forming the basis of a common fund.

“We will have a European fund as far as I’m concerned, but there will be, especially in the first years, some national responsibility,”

National responsibility hmm... sounds like tax payer bailouts to me. Welcome to the new normal.

watch gold and bitcoin go after this announcement and still none of those ceo's go to jail .
yet how many banks have been hit with fines lately and still nothing carry on as normal by the greedy bankers take you'r money out is the only answer to them and use a credit union s& f as i had not heard this news before

Ditch those banks if it's your locale. See what is best for you as an option.
I hope more Bitcoin ATMs pop up. First was in Cyprus, the lastest in Stockholm, Sweden

reply to post by Bassago


Its disgusting.

Im glad the uk didnt join the euro. The euro currency has turned into a disaster.....well except for germany.

reply to post by crazyewok

The euro currency has turned into a disaster.....well except for germany.

Yeah Germany's quite the power-house again. I'm also glad the UK stayed out of the euro, now if you guys can just either get free of the EU or pull back a bunch of sovereign authority things may get even better.

Good luck!

crazyewok
reply to post by Bassago

 

Its disgusting.

Im glad the uk didnt join the euro. The euro currency has turned into a disaster.....well except for germany.

See that's where Hitler and Napoleon failed. You don't conquer Europe with military force .. you conquer it by offering the people fancy gadgets and the chance to migrate to richer lands.

Bassago

Yeah Germany's quite the power-house again. I'm also glad the UK stayed out of the euro, now if you guys can just either get free of the EU or pull back a bunch of sovereign authority things may get even better.

Good luck!

edit on 730am2121am102013 by Bassago because: (no reason given)

It should break away and so should Denmark, Norway and the other EU countrys doing well and form its on little band of economic cooperation. No poltics or just free trade, you get the good bit of the EU without the crap. Do that and you could probably get Iceland and Finland to join.

Rockpuck


See that's where Hitler and Napoleon failed. You don't conquer Europe with military force .. you conquer it by offering the people fancy gadgets and the chance to migrate to richer lands.

Well thats how the USA has gained domanece over the world.

They have tied the Doller into almost everything.

Now no one can afford the USA to fail. The USA can make most countrys dance to its tune with economic blackmail.

I can't find any reports of this in MSM (surprise), but I did find this: www.theguardian.com...

Eurogroup head says Cyprus shows future of bank rescues

I'm sure I heard Merkel saying that the ECB will use this as the basis for any future bail-in of Eurozone countries. I don't think they are thinking about it - I think it is already "the plan" should a bail in/out be required.