Think Cyprus Style Bank Deposit Confiscation Is NOT Possible in the US? Think Again!Submitted by TimG on Wed, 04/03/2013 - 13:54
Many of the media talking heads in the main stream media were quick to dismiss a Cypriot-style deposit confiscation happening here in the land of the free – the U.S.A. The reality behind the denial is much more concerning especially when one takes into consideration a recent joint paper by the Federal Deposit Insurance Corporation (FDIC) and the Bank of England titled Resolving Globally Active, Systemically Important Financial Institutions. This paper was published back on December 10, 2012 and is considered to be guidance for banks and government in the US to follow during any sort of bank insolvency that rises to the surface.
While many of us here on the DailyPaul have taken our fiat out of these fractional reserve banking entities, as we realize the absurd nature of this banking system, many of our friends and family have chosen to “trust” in these banking institutions.
FDIC insurance balances of just $25 Billion to cover some $9.3 Trillion in deposits should be enough of an eye-opener for most to run to their nearest branch and take their cash, still others belief in the almighty sanctity of the banks is still strong.
My hope is that this post will be shared with those we care about in order to finally give them the ability to see that the excess labor and capital is highly at risk.
Pay close attention to what can be found on page 3, section 13, as it outlines the path for confiscation of one’s deposits and swapping those deposits with a now defunct bank’s stocks. How quaint! Deposits traded for stock in a failed institution. This doesn’t sound like a good deal to me.
“An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company into equity. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself — thus , the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.”
In section 14 it is further outlined that the power to confiscate one’s deposits in this manner was cleared under the Dodd-Frank Act.
NO ONE IN THE MEDIA IS REPORTING IT. I have been able to get on a few of the conservative radio talk shows to point this out and am constantly cut off as a crazy. Will you report this to your loved ones? I sure am.