Conservative Budget Bail-in Regime May Allow Banks to Confiscate Customer’s Deposits
By Dr. Charles McVety
CanadaFreePress.com
Friday, May 3, 2013
On March 21st, 2013, Prime Minister Stephen Harper had his Finance Minister Jim Flaherty present their 2013 Budget that included a “Bail-In Regime” on page 145. The clause will allow banks to convert liabilities into capital in times of need. The recent events in Cyprus, coupled with the G20 agreement in Mexico City-2012, suggest that this so called bail-in scheme may be used to plunder the savings of Canadians.
The bank failures of 2008 were rescued by governments doling out trillions of dollars of bail-outs. The result was massive national debt for western countries. International financial discussions have recently revolved around a new option for banks to simply loot the accounts of their customers. Cyprus banks were the first to implement a “bail-in”. The Eurogroup deal on March 25th allowed the Bank of Cyprus to use 37.5 % of deposits exceeding 100,000 Euros for the initial bail-in and a further 22.5% to remain on hold. This action caused massive runs on Cyprus banks, riots, and unrest leaving citizens screaming “you took my life savings”.
Remarkably, Prime Minister Harper has implemented a similar “bail-in regime” for Canadians:
The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. (Budget 2013 -page 145)
The Rest…HERE
