28 votes

Federal Reserve Vice Chairman: Bank Bail Ins Are Coming To the United States

Bank Bail-ins are coming to the United States

"As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding--this cushion is known as a "gone concern" buffer."

Vice Chairman of the Federal Reserve Stanley Fisher

https://smaulgld.com/u-s-plans-to-bail-in-the-banks/

Alarming, that none of the stories covering Mr. Fisher's speech mentioned the bail-ins

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

correction:

globe trotting Vice Chairman of the Federal Reserve is dual citizen, (Stanley) Fischer not (Stanley) Fisher.
interesting bio at:
http://en.wikipedia.org/wiki/Stanley_Fischer
*note lifelong track record in most all TPTB organizations..

hahahaha, wikipedia says

IT ALL... Even the fact he advised Bernanke and Draghi on their thesis, amazing how these dots all join up with the EU.
http://en.wikipedia.org/wiki/Gill_Marcus this chick is running the South African central bank, still think apartheid was a fight for freedom or another regime change that no one talks much about.

Can poeple now see the true face of worldly power, when Jesus said we are not of this world, few actually understand what this means. We are priveledged to see behind the web of lies, but then comes the realization of this power and how small we actually are. But to those that answer when Jesus calls, where our feet meets the ground is the Kingdom of God.

Nice catch smaulgld

"preparing a proposal. heh. For the issuance of debt heh heh. Yeah that means they take your money and drop an IOU into your account heh heh heh.

If the past is any guide, the American people will grumble a bit but take it. This will only really hit lower-middle and lower income brackets. Do you know ANYBODY of real means that keeps their wealth in a savings account? The bank is just a bill paying service these days. It's an easy way to pay out your income on rent, transportation, utilities and food.

So basically this will be a partisan political talking point but nobody of any influence has a dog in this fight. Heck, influnece is on the pay side of this one. Or am I wrong? Perhaps a motley assembleage of druggies and hippies will do Occupy Wall Street II and bang on drums and get beaten up by cops for a month or so before this latest round of plundering begins.

Well we have some time to prepare our counter and it's gonna be multi-pronged. Most obvious beneficiary would be Rand. Bitcoiners would love to offer more of an alternative to payment processing. A bunch of us would love to see non-participation in the banking sector.

It's actually to our benefit if this isn't defeated quietly. I hope to hear Krugman and Yellen and the whole cast and crew trying to sell this.

There is nothing strange about having a bar of soap in your right pocket, it's just what's happening.

The statement is a farce

"issue bail-inable long-term debt"
why call it that? Debt issued by any entity that goes sour already has the concept of pennies on the dollar built in or if they want they can make the security convertible into equity.

Issuing specifically bailinable debt won't fly- if they don't sell enough of it they'll say "conceptually depositors have bailinable debt, we'll take that!"

Please subscribe to smaulgld.com

What it means is a greater

What it means is a greater monopoly for the bigger banks - they get to impose large fees to smaller banks and put them out of business. Just like the FDIC - the smaller banks have to contribute more because they are "riskier". I lot of smaller banks can not afford to participate in FDIC which hurts since consumers have been duped into thinking they are protected using a bank that is insured.

Cyril's picture

LOL.

LOL. They can come any time.

I have no money in the bank. I used to, but not any longer, and it's been a while, already.

Barely any fake one, $FRN-flavor, either.

"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

Cyril's picture

They are welcome :)

They are welcome :)

"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

What does this mean?

What does this mean?

It means instead of the govt bailing out the banks - they'll

just take the money out of your account instead. Worked like a charm in Cyprus.

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

One more reason

to close your accounts and find an alternative.

"Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the office of a thoroughly nasty business concern." ~~C.S. Lewis
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15

Is this where bank depositors are responsible for bank losses?

This means that the government may not bail out banks but depositors may have to.

This makes it dangerous to have much of your net worth in "safe" bank accounts.

Not that I have this problem anyway.

I think this was a little trick they inserted into Dodd-Frank.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

You have to wonder why especially with bank profits near

record highs:

http://online.wsj.com/articles/u-s-banking-industry-profits-...

Where's all the money going????

The individual has always had to struggle to keep from being overwhelmed by the tribe. If you try it, you will be lonely often, and sometimes frightened. But no price is too high to pay for the privilege of owning yourself.
Friedrich Nietzsche

I do not think credit unions

I do not think credit unions are in the same shape, since they issue no stocks, just share certificates, and use only the money they have on deposit for loans to share holders. Bye bye banks.

if they cant convert un performing debt to equity

they can't do a "bail in"

Please subscribe to smaulgld.com

Odious Debt?

Does anyone here know the term odious debt? Obviously we must make it back to a point where the rule of law is back in place, but if more are aware of the term, we could hang debt back where it belongs. All of the bail-outs and bail-ins are prime examples for odious debt.

Yep, then this will happen…

The story is a bit old but still makes the point.

Is your 401K about to be nationalized?

The $19.4 trillion sitting in personal retirement accounts like the 401K may be too tempting an apple for a government that is quite broke, both monetarily and morally. The U.S. Consumer Financial Protection Bureau director Richard Cordray recently mentioned these accounts in a recent interview, stating “That’s one of the things we’ve been exploring and are interested in, in terms of whether and what authority we have.”

http://communities.washingtontimes.com/neighborhood/politics...

Can't say we haven't been warned re

401K's and bank deposits

Please subscribe to smaulgld.com

Get OUT of Banks NOW!!

“Banks are still too big to fail,
the only difference is that somebody else
(not government) will pay to avoid a failure,
and that somebody else is the creditors (depositors)…”

It is important to realize that not just the EU, but also the UK, the U.S. and most G 20 nations have plans for bail-ins … --Max Keiser April 3, 2014
------------------
In the end, however, it's not just creditors who will be on the hook but depositors as well.

Jim Sinclair pointed out that banks legally own depositors' funds as soon as the depositors hand those funds over to the banks.

The money becomes the banks and the "depositors" actually become unsecured creditors holding promises to pay. Previously the banks were obligated to pay back this loan on demand with cash.

Under the new Federal Deposit Insurance Company - Bank of England (FDIC-BOE) plan revealed this year, however,

these promises to pay become equity (NOT CASH) in the bank, which won't be able to be used as payments for bills,

which is why most people have money in the bank in the first place.

The point is that your money is not yours while it is "deposited" with a bank.

Notice that banks are already setting up deposits for seizure. Despite the excuses of the likes of JPMorgan, the banks are indeed clamping down on outgoing international wire transfers and now putting in limits for withdrawal that they are closing the doors.

If you don't get your money out now, possibly by end of this year or sooner, you may not be able ever to get it out. Once doors are closed the federal government might do a bank holiday and bail in to make the banks "solvent" again. At best you may get some "bank equity" that is both illiquid and which will ultimately be worth a tiny fraction of the deposit it replaces.

Seems now that banks all over the world like the bail in model

Money in the bank used to mean safe- no more

Please subscribe to smaulgld.com