Fed Proposal Allows Banks To Seize Your MoneySubmitted by go213mph on Fri, 07/20/2012 - 22:23
The New York Fed has introduced a framework to give banks the right to suspend account withdrawals at will to defend against financial panic.
The shadow central planners have proposed new contigency plans to prevent the Great Depression style bank runs that are hitting Europe from spreading to America.
Their solution is the creation of a framework that consists of “capital controls” which allow financial institutions that find themselves in hot water to limit or outright suspend customer account withdrawals.
Our beloved regulators seem not to care the slightest that these institutions put themselves in hot water in the first place by taking up certain financial positions that put their customers’ money and the global financial system at risk.
Instead the message is clear – Our banks are too big to fail and if they need to seize their customers deposits to prevent them from failing then we must allow it.