Part 7 – New EU Bail-In Agreement Yesterday – What Bail-Ins Would Look Like
by GoldCore
ZeroHedge.com
12/12/2013
Staggering numbers which suggest alas that the U.S. politicians are rearranging chairs on the titanic.
These numbers alone should make people wary of buying into the notion that gold will fall in 2014 as the dollar strengthens due to the “normalisation of the economy.” The economy is not normalising and the recovery is completely abnormal, hence it will be wise to again ignore the publicised bearish calls of certain banks.
New EU Bail-In Agreement Yesterday
The EU agreed new rules yesterday for bank bailouts or “bail-ins.”
The new system will take effect from 2016 but emergency resolutions can be brought forward in the event of banks failing in the interim period. The “bail-in” will require that shareholders, bondholders and importantly now depositors will all suffer ‘haircuts’ or be burnt if a financial institution is in trouble.
The European parliament confirmed in a statement overnight that depositors with more than 100,000 euros ($137,000) would be bailed in after shareholders and bondholders. It is important to note that the 100,000 figure is an arbitrary figure and there is a possibility that this figure could be reduced by an insolvent government faced with an imploding banking system.
The Rest…HERE
