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Europe Strikes Deal to Steal Bank Deposits

Europe strikes deal to push cost of bank failure on investors

(Reuters) - The European Union agreed on Thursday to force investors and wealthy savers to share the costs of future bank failures, moving closer to drawing a line under years of taxpayer-funded bailouts that have prompted public outrage.

After seven hours of late-night talks, finance ministers from the bloc's 27 countries emerged with a blueprint to close or salvage banks in trouble. The plan stipulates that shareholders, bondholders and depositors with more than 100,000 euros ($132,000) should share the burden of saving a bank.

http://www.reuters.com/article/2013/06/27/us-eu-banks-idUSBR...



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I know I'm going to invite the hate

but this actually sounds like a good idea. Make the shareholder and the bond holders bear the price of restructuring first is what the article said. So instead of there being zero liability as an account holder, shareholder, or bond holder, these individuals will actually bear the price of the banks actions. In other words, liability is no longer limited (that's what it sounds like to me anyways), which means the government is no longer going to protect the individual from loss. That sounds good to me because the government shouldn't be protecting the individual from loss if we are to expect the individual to make sounds decisions.

Additionally, if the shareholder and bond holders are suddenly liable, this would open the door for legal action to be taken against the banks and bank execs when the banks fail, which again means liability is increased, and the banks and bank execs will have to assume more accountability.

Now I don't know what the situation is like in Europe, and how their liability laws work, or if anyone was taken to task for the bank failures, but this is the kinds of laws that we need in the US, primarily scaling back on limited liability laws.

Cyril's picture

Or, to rephrase Nigel, a few months ago: "kiss my @ss, goodbye!"

Or, to rephrase Nigel's words a few months ago: "kiss my @ss, goodbye!"


http://youtu.be/a0OCcjz4lfU

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

FDIC there isn't any savings

FDIC there isn't any savings account. same as social security. that's why there was no money.

That's ok because next year it will be depositors with more than

.... $50,000 E, but I was not a rich man, so I didn't do anything,
.....next they came for depositors with more than $25,000 E, but I dont have that much, so I didn't do anything....
.....next they came for depositors with more than $10,000 E, since it's only "fair", but I dont have that much so I didn't do anything,
.....then they came for depositors with more than $1000 E....

...by then it was too late!
Rev. Nieeuro

There is no end to this.

my guess...

germany/ECB is trying to incite mass bank runs to close out the smaller banks while simultaneously killing of the middle class companies so they can go in and buy basically everything for pennies...

ah la 1929 JP morgan style.

Tools of war are not always obvious. The worst weapon is an idea planted in the mind of man. Prejudices can kill, suspicion can destroy, and a thoughtless, frightened search for a scapegoat has an everlasting fallout all of its own.

OOPs...

Sorry JO4RP! I didn't see your previous post. Doh!!
so I'll crosspost/delete.
Cheers,
G
----------------------------
Europe Strikes Deal to Steal Bank Deposits

Not(just)Bondholders/Shareholders... Depositors.

(Reuters) - The European Union agreed on Thursday to force investors and wealthy savers to share the costs of future bank failures, moving closer to drawing a line under years of taxpayer-funded bailouts that have prompted public outrage.

After seven hours of late-night talks, finance ministers from the bloc's 27 countries emerged with a blueprint to close or salvage banks in trouble. The plan stipulates that shareholders, bondholders and depositors with more than 100,000 euros ($132,000) should share the burden of saving a bank.

http://www.reuters.com/article/2013/06/27/us-eu-banks-idUSBR...

Bank robberry, because EU is incompetent.

Never give a parliament the right to borrow and tax because they will talk each other into robbing the public blind.

Free includes debt-free!

Not to worry - just so people understand what's happening!

.

"When the power of love overcomes the love of power, the world will know Peace." - Jimi Hendrix

That is the problem with governments...

They legalize theft for their friends.

Time to build the free market justice system.
http://www.dailypaul.com/290648/consumer-protection-how-the-...

www.SuccessCouncil.com
Protect your assets and profit from the greatest wealth transfer in history.

Reuters is such trash

I love how casually they put it, that since Cyprus got away with robbing the banks (so to speak), now the precedent's been established, so Europe can try it, too! Simple as that, solves a lot of the government's problems, full speed ahead.

Paging FDR, paging

Paging FDR, paging FDR.
Legalized theft to pay the State's debts.

Southern Agrarian

The end is near. Im ready.

The end is near.

Im ready.

Why don't the owners of the bank suffer the losses?

Oh wait, I get it now...

LOL

That says it all.

Question is

does "investor" and / or "wealthy saver" = "depositor".

Cause if so,I'm OUT.

Yes, of course it does, read it again.

Deposits over the equivalent of $132,000 but we know how that worked for Cyprus. Didn't they go from 9% of deposits to well over 60% with the possibility it would be higher? I don't know the final outcome.

"When the power of love overcomes the love of power, the world will know Peace." - Jimi Hendrix

Like My Old Boss Used to Say

"You have to be flexible!".

I interpreted that to mean "Bend over and grab your ankles!"

they'll start with the big investors

and then if that is not enough you can be sure they will go lower.
Just like the income tax when it was first instituted. It started with only effecting the highest incomes and then made its way down the chain.
they are basically socializing the losses

Please subscribe to smaulgld.com

I think you have it

I think you have it backwards... they'll start with the little guys and only go after the mega-wealthy if they have to... they're very good at protecting their own kind.

At their inceptions, the #Liberty, #OccupyWallStreet and #TeaParty movements all had the same basic goal... What happened?