CONTAGION!
DEPOSITOR HAIRCUT BAIL-INS SPREAD TO NEW ZEALAND, GOV’T DISCUSSING
CYPRUS STYLE SOLUTION FOR BANK FAILURE!
19
March, 2013
*BREAKING!
Depositor haircut wealth confiscations have just gone from a one-off in Cyprus to the new thing in 2013.
The New Zealand government is reportedly pursuing a policy of Cyprus style depositor haircuts for all future bank failures!
The
plan would not limit the haircuts to any percentage, but would steal
whatever is necessary from depositors to prop up the failing bank
institution: Depositors
will overnight have their savings shaved by the amount needed to keep
the bank afloat.
The
rule of law in the entire Western financial world is apparently
vaporizing faster than the spent fuel at Fukushima.
As New
Zealand’s Voxy reports:
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.
“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.
New
Zealand’s plan reportedly will affect all savers equally:
“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.
“While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.
Cue
the bank run panic in New Zealand.
Meanwhile,
the FDIC today stated such a thing could never NEVER! happen in the
US:
As the FreeBeacon reports:
American officials say the Federal Deposit Insurance Corporation (FDIC), which regulates and insures American bank deposits, does not have the authority under current law to undertake a measure as radical as the one proposed in Cyprus.
“There is no way [the FDIC could implement similar measures to backstop the American banking sector],” said agency spokesman Greg Hernandez. “The FDIC does not claw back any insured deposits.”
And from RT.....
New
Zealand considers Cyprus-style banking failure solution
New
Zealand depositors could face a Cyprus-style tax on their bank
accounts, as the government is planning to impose a similar strategy
on its banks warns the country's Green Party
RT,
19
March, 2013
New
Zealand is facing a similar bank failure to Cyprus, is likely to
adopt open bank resolution (OBR), which will see small depositors
lose part their savings in favour of a big bank bailout, Green Party
co-leader Russel Norman said. The country’s Finance Minister Bill
English supports the open bank resolution.
"Bill
English is proposing a Cyprus-style solution for managing bank
failure here in New Zealand," said Norman, adding that the
Reserve Bank is in the "final stages" of implementing an
OBR system.
New
Zealand banks’ depositors will have their savings cut by a certain
percentage needed to keep their bank afloat.
The
Green Party however has major doubts, that OBR tactics is appropriate
here. Norman underlined, that few depositors can reasonably evaluate
the reliability of their bank. “Not even sophisticated investors
like Merrill Lynch saw the global financial crisis coming,” he
added.
Norman
believes that OBR policy is too radical saying few OECD countries use
it, preferring deposit insurance schemes.
"A
deposit insurance scheme is a much simpler, well-tested alternative
to open bank resolution. It rewards safe banks with lower premiums
and limits the cost to taxpayers of a bank failure… [They] protect
people's deposits up to a maximum ranging from $100,000 to $250,000,"
he said.
Cyprus
announced last week that it plans to impose a 10 per cent tax on bank
accounts as part of a 10 billion euro bailout by the European Union.
The news caused panic across the island as people rushed to cash
machines to withdraw their savings. The Cypriot parliament will vote
on the deposit levy on Tuesday.
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