Bank Bail-ins Are Now Regulated By Eurozone Finance Ministers

Wednesday, December 4, 2013
By Paul Martin

Gold Silver Worlds
December 3, 2013

The Irish Times writes today that EU finance ministers have agreed a set of rules that could be used to wind up insolvent banks. In future, banks creditors – including potentially savers – would suffer losses should European financial institutions collapse. That comes after Irish Minister for Finance Michael Noonan said “Bail-in is now the rule” back in June of this year.

Bank bail-ins, or deposit confiscation, are the opposite of bail-outs. Instead of the government stepping in to bail-out a bank when it defaults, it is a group of stakeholders (including deposit holders of the bank) that are paying for the default. Deposit owners, including savings account owners, risk to lose part or everything of the money they hold on their deposit(s) at the bank.

The Rest…HERE

Leave a Reply

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter