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Canadian government offers "bail-in" regime, prepares for the confiscation of bank deposits to bail out banks

Submitted by Reggie Middleton on 03/30/2013 11:12 -0400

Continuing my series of banks ready to "Cyprus" their depositors, I offer this reader contribution from Don from Canada 2013-03-29 23:11:
As part of the 2013 budget in Canada, the Minister of Finance tabled the Economic Action Plan 2013 which included the newest buzzword 'bail-in'.

Source: budget.gc.ca/.../...
Page 145
“The [Canadian] Government proposes to implement a “bail-in” regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants. Systemically important banks will continue to be subject to existing risk management requirements, including enhanced supervision and recovery and resolution plans.
This risk management framework will limit the unfair advantage that could be gained by Canada’s systemically important banks through the mistaken belief by investors and other market participants that these institutions are ‘too big to fail’.”

read more http://www.zerohedge.com/contributed/2013-03-30/canadian-gov...

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Don't Cyprus Me Bro


Yeah good news ok.....for bankers

1. Recapitalization. That's the war lost right there.

2. Conversion of liabilities into regulatory capital? All I read there is certain investors get preferential treatment over depositors and the debt itself becomes a blunt instrument in the hands of government.

3. Less risk to taxpayers really means insolvent businesses file for bankruptcy not 5 martini lunch expenses.

Be brave, be brave, the Myan pilot needs no aeroplane.

This is a good thing.

Now investors and depositors have to do their homework and won't rely on the false belief that the given bank is "too big to fail". A bank should be allowed to fail, just like any other business and investors should lose their investment in case it goes wrong, again, like in any other venture.

"If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom — go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, an

I think maybe

Credit Unions are the way to go. IMO

"We can see with our eyes, hear with our ears and feel with our touch, but we understand with our hearts."

Credit Unions

Are now just a front for the banks . I went down to a members credit union and found out was part of a corporate umbrella of Chase.