GOVERNMENTS STEALING FROM BANK ACCOUNTS
‘Bail-ins’ taking depositors’ money could be headed to U.S.
F. MICHAEL MALOOF
WASHINGTON – The questionable practice of “bail-ins” begun by Cyprus a year ago to keep banks solvent is beginning to spread to other nations, and holders of large deposits are starting to see their balances plunge literally overnight.
A “bail-in,” as opposed to a bailout that countries especially in Europe have been seeking from the International Monetary Fund and the European Union, is a recognition that such outside monetary injections won’t be forthcoming.
Consequently, banks have been seeking money from another source – their large depositors. The funds are simply taken and applied to a bank’s recapitalization in lieu of government bailouts.
The practice essentially is a transfer from a personal savings account to the bank’s operating account, without the customers’ permission or even any notice.
The example set in Cyprus when the island nation confronted its financial crisis now is spreading to such other countries as Italy, Poland, New Zealand and now Canada.