Cyprus is actually a "template" (Plans to steal deposits in NZ, Spain, UK, USA, Canada, ...)

[GlassSteagallfan]

Spanish Bank Deposits Seized, Cyprus-Style

March 28, 2013 • 1:50PM

Eurogroup President Joeron Dijsselbloem caused both a political furor and rumblings of major bank runs across Europe, with his remarks March 25 that the great bank heist in Cyprus was actually a "template" for other European countries. The influential Eurogroup Working Group quickly drafted an internal memo which denied Cyprus was such a "template," the Wall Street Journal reports today. And Spanish Prime Minister Mariano Rajoy held a joint press conference yesterday with French President Francois Hollande, to proclaim that "the problem of the Cypriot banking sector is different [than that of the rest of Europe]; the decision adopted is extraordinary and unique, and will be applied in an extraordinary manner and only to Cyprus."

But even as Rajoy was speaking, his government was announcing a long-awaited final settlement of the cases of five bankrupt Spanish banks, led by the giant Bankia, which involved fleecing up to a million small depositors in those banks of anywhere from 30% to 70% of their holdings — something over 6 billion euros. Although the mechanism employed is slightly different than that in Cyprus, the policy is identical: the international financial system is in full meltdown; the game is over; and small depositors and the population in general are being forced to take the hit in order to bail out the big international speculators.

The only alternative to such genocidal robbery, Lyndon LaRouche has repeatedly explained, is the international implementation of full banking separation under Glass-Steagall legislation.

In the case of Spain's Bankia, the thievery involves the fact that, over recent years, the bank fraudulently tricked over 400,000 small depositors to use their savings to purchase the bank's "preferred shares" — or "preferentes," as they are known in Spain — with promises of very high rates of return. Marketed as fixed-term deposits, the reality of the "preferentes" is that they either could never be cashed in, or carried terms as long as 1,000 years!

With Bankia bankrupt, the FROB (Spain's bank reorganization agency) has imposed "haircuts" of 39-50% on all "preferentes" holders, followed by their forced conversion into common stock in Bankia. As part of the settlement, those common stocks, which last week were trading at 2 euros per share, will be drastically slashed down to 1 euro cent per share—a 99% loss. The head of Spain's ADICAE (Association of Consumers and Users of Banks, Savings Banks and Insurance Companies), Manuel Pardos, has denounced this arrangement as "double thievery and fraud," and has filed suit against most of Spain's major financial institutions for the "crime of massive consumer fraud."

In addition to Bankia, four other bankrupt financial institutions are involved in the heist: Catalunya Bank is slashing "preferentes" by 61%, Banco Gallego by 50%, Novagalicia Banco by 43%, and Banco de Valencia by 90%. In all five cases, the Wall Street Journal admits, "most" of the "preferentes" holders are small depositors.

Three additional features of the robbery should be noted.

1) The drastic "haircut" of defrauded small depositors was imposed on the Spanish government as part of a July 2012 Memorandum of Understanding with the detested Troika — the same criminals who just authored the great bank heist in Cyprus.

2) While Prime Minister Rajoy was busy impersonating Pinnochio, his Deputy Economics Minister, Fernando Jimenez Latorre, was assuring Spain's Senate that the deal "was as generous as possible, because it converts holders of those products [the 'preferentes'] into stock holders, and that lightens their load to help clean up the institution. It is satisfactory, if you compare it to other cases which happened within the EU."

3) The "preferentes" scam in Spain is almost identical to the late 1930s looting of consumers carried out by First National City Bank (today Citibank), whose exposure by chief counsel Ferdinand Pecora in the famous 1933 congressional hearings led to the passage of Franklin Roosevelt's Glass-Steagall law that year.

http://larouchepac.com/node/26017


Dennis Small explains the robbery:


http://www.youtube.com/watch?v=j3W8JpokXZw
http://www.youtube.com/watch?v=j3W8JpokXZw

[mosquito]

Thanks.

I'm just amazed at how easy it is for governements and banks to commit grand larceny on such a massive scale, and at how THE PEOPLE ALLOW THEM TO GET AWAY WITH IT !!

[BlueGem]

Look we alk know this is going on. But it takes more than courage and organisation to make a stance in these cases. In cyprus the banks literally closed so the money could be taken from peoples acciunts. The common man in Cyprus (or indeed most countries outside of US) will not be equipped to storm a bank and then fight off armed forces afterwards.

These people were powerless. It has long gone beyond the point of tryng to educate people. For me, I am cutting my loses and barely sparing a thought for people who could not find the time to stop, look and listen.

[Corncrake]

It looks as if another tax haven could be about to follow Cyprus:

******

On March 27, 2013, His Serene Highness Prince Alois of Liechtenstein attended the opening session of Parliament in Vaduz. According to AFP and Volksblatt, during yesterday’s session the prince gave a speech urging Parliament:

“…to prepare the Principality of Liechtenstein for austerity and to prepare a balanced budget as soon as possible. The prince warned that forecasts for 2013 show a deficit of 172 million Euros which represents nearly a quarter of spending. The prince exclaimed ‘I see this situation with great concern for the long term good of our country…’

Liechtenstein has a AAA rating by Standard and Poor’s, which recently confirmed its rating with a stable outlook, highlighting that the Principality has stable institutions and a clear political line, which offers a guarantee of control of economic and financial challenges.”

******

There is a video at the source for those who speak German: http://royalcorrespondent.com/2013/03/28/his-serene-highness-hereditary-prince-alois-of-liechtenstein-calls-for-austerity-videos/

[sdv]

This report at http://www.truthdig.com/report/item/the_confiscation_scheme_planned_for_us_and_uk_depositors_20130328/


Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

New Zealand has a similar directive, discussed in my last article here, indicating that this isn’t just an emergency measure for troubled Eurozone countries. New Zealand’s Voxy reported on March 19th:

The plan has been there for a long time for the elite to steal more and more money.

Here is the fraud exposed:


Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

And then ...


If our IOUs are converted to bank stock, they will no longer be subject to insurance protection but will be “at risk” and vulnerable to being wiped out, just as the Lehman Brothers shareholders were in 2008.

And it gets scarier:


The Cyprus haircut on depositors was called a “wealth tax” and was written off by commentators as “deserved,” because much of the money in Cypriot accounts belongs to foreign oligarchs, tax dodgers and money launderers. But if that template is applied in the US, it will be a tax on the poor and middle class. Wealthy Americans don’t keep most of their money in bank accounts. They keep it in the stock market, in real estate, in over-the-counter derivatives, in gold and silver, and so forth.

Are you safe, then, if your money is in gold and silver? Apparently not – if it’s stored in a safety deposit box in the bank. Homeland Security has reportedly told banks that it has authority to seize the contents of safety deposit boxes without a warrant when it’s a matter of “national security,” which a major bank crisis no doubt will be.

Humanity is about competition for resources and in terms of money the wealthy elite and those who have bullied their way into power make sure that they accumulate all wealth for themselves and keep the world enslaved in a system where wealth and access to resources is determined by money.

However, there will come a time when the battle will rage within the elite group as they fight between themselves. They have created a system that by its very rules will destroy them.

[Cognitive Dissident]

My take on all this: those in charge of the Euro have totally run out of options and are reverting to the last option left: theft by government.

www.zerohedge.com carries good commentary on all of this mess, as does www.oftwominds.com

But the short of it is: some truth will occasionally be spoken (like by Dijsselbloem) and then it will immediately be denied (Dijsselbloem denied he said what he actually did say about Cyprus being a template - Reuters and the FT, who did the interview with him, were not amused). On the ground, the situation deteriorates.

The economy of Cyprus will fall through the floor. Another bailout will be required in a year or so - perhaps the Russians will get involved then, as they are playing the long game. Greece will also require another bailout, as will Spain, Italy and others. Various countries will leave the Euro in a disorderly fashion and the European economy will accelerate its decline. All the politicians and MSM will pretend to be surprised and say that nobody could have seen this coming, even though everyone did.

It is all part of the unravelling of "peak everything" capitalism, a long and slow process punctated by moments of crisis.

Of course, this doesn't take into account the effect of ET disclosure or any number of other wild cards which seem, in my humble and purely subjective opinion, to be ever more likely to occur (OT for this thread!).

[GlassSteagallfan]

Charlie McGrath and Ellen Brown (Web of Debt) explain the seizure of bank accounts:


http://www.youtube.com/watch?v=DuXUS0NCkRY&list=UUTed6f3mhl0uXNbnvO4O1lA&feature=player_embedded
http://www.youtube.com/watch?v=DuXUS0NCkRY&list=UUTed6f3mhl0uXNbnvO4O1lA&feature=player_embedded

[jackovesk]

Cyprus is actually a "template"

I Agree...

Its a "template" of how humanity is going take back control of the 'Robber Baron's' (Criminal Monetary System)...:yes4:

[mosquito]

It's beginning to look like my total lack of financial assets (barring the massive 700 GBP I could theoretically get from selling my laptop and my phone) is probably a blessing !!

[gripreaper]

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay.

This is true internationally. The moment you deposit Federal Reserve Notes into a Federally Chartered banking institution, which is not lawful currency, but legal tender, these notes are put into the general account of the bank and are commingled with other deposits.

Here in the good old USA, Inc., if you want to cash a check and have no account with which to deposit and run the funds through, you pay a 6 dollar fee, must show two pieces of state sponsored and approved identification, must endorse the note on the back, and put your thumbprint on the front, while enduring several attempts by the teller to get you to open an account, and being sneered at and looked down to if you decline. While counting out the cash, the main teller manager, after taking ten minutes in the back room approving the transaction and signing off on it, stands behind the teller and watches her count out the cash, while she looks at you like you are a criminal.

I know because I go through this every two weeks, while my young co-workers take direct deposits, never see any paper money, never carry any cash, use their debit cards for everything, and snicker at me for being an old antiquated fart for missing out on the convenience of it all, while they stay "heads down" in their smart phones, looking at status updates and beaming the towers with their locations at all times. It's disheartening, and when I try to apprise them of the seriousness of the situation, they just laugh at me and call me a conspiracy theorist.

Yet the truth is, if you want to make a "special deposit" of lawful currency into a non-interest bearing account, without the bank having your social security number, and your lawful currency not commingled within the general fund, but held on special deposit with YOU as the owner of that account, most banks will not open the account unless you show them the laws and provisions for such an account. I have heard of people doing this, although I have not seen the affirmative protocols for doing so, or know of any who have. Just heard it is possible.

Pretty soon, there will be no paper notes and all transactions will be digital, and all slaves, um I mean citizens, will be subject to all of the privileges and obligations of slavery, um I mean citizenship, and will be pre-taxed, pre-fined for non compliance, and will be shut off from commerce if they do not obey.

Coming to a theater near you soon.

[GlassSteagallfan]

British Empire Strategizes on Saving Their System by Killing YOU

March 30, 2013 • 7:08PM

The Bank of England (BOE) and the U.S. Federal Deposit Insurance Corporation (FDIC) jointly authored a paper published on Dec. 10, 2012, titled "Resolving Globally Active, Systemically Important, Financial Institutions." Largely unnoticed at the time, the 15-page document has come into focus over the last 48 hours as a critical planning document by the British Empire's financial hit-men, which strategizes over how to save their hopelessly bankrupt trans-Atlantic financial system from the onrushing meltdown, including by stealing assets from depositors — in exactly the fashion that has just occurred in Cyprus and is spreading elsewhere — and leaving populations to scrounge in the rubble for their simple existence.

The report couches the discussion in terms of making "unsecured creditors" take the hit for bailing out the banks, and remains carefully ambiguous as to whether or not that includes depositors in those banks. But events now rapidly unfolding internationally, make it crystal clear that what is meant by "unsecured creditors" can in fact become depositors in those benighted, bankrupt banks. And it will not only be Cypriots, Spaniards and Italians that will be left to starve in order to bail out the banks; the same policy is planned for the United Kingdom, Canada, and the United States as well. It is coming soon to a bank near you!

The question that must now be posed, Lyndon LaRouche stated today, is: How many members of the U.S. Congress are aware of this swindle, and are not supporting Glass-Steagall, knowing this?

Lyndon LaRouche warned you about the precise policy that is outlined in the BOE-FDIC plan — and explained why only Glass-Steagall is a viable alternative — in an explosive Feb. 15, 2013 webcast, where he forecast:

"The vast mass of debt, which is represented by the monetarist operation, would be cancelled. In its place, they would have a new system of finances, which ignores entirely all the obligations associated with the old! Which would mean that most of the people of the world would be starving to death, quickly. . . I know exactly what they're doing, because I know how systems work. And what they're doing, the only way it will work, is to cancel the entire bailout system—just wipe it off the plate, and come in with a new system, in which people who are privileged will be brought into that system, and they will be given relatively good incomes to live on, but unfortunately the greater majority of the population will have none. This is the greatest population-reduction scheme so far in known history. And that's what the policy of the people who oppose Glass-Steagall is—whether they themselves know it or not. But they will be held accountable for the effect of that policy."

In light of that LaRouche warning, and unfolding events on the ground, the BOE-FDIC planning document has four policy points which should be emphasized:

1) In the event of a meltdown of a Globally Active, Systemically Important Financial Institution (G-SIFI), "shareholders would lose all value and unsecured creditors should thus expect that their claims would be written down to reflect any losses that shareholders did not cover." As a March 29 posting on the blog "Random Thoughts" put it: "The $64 trillion question is who are the 'unsecured creditors'? If they are depositors over the guaranteed limits, expect corporations and individuals to park their money elsewhere."

2) The proposed "top-down" resolution (i.e. bankruptcy reorganization) of G-SIFIs, by a combined UK-US approach, will lead to "smaller, more manageable — and perhaps more profitable" financial institutions. Ring-fencing in the U.K. will be very helpful to bring this about, they say, asserting — absurdly — that this will prevent the derivatives bubble from blowing up in their face.

3) The Bank of England takes over regulatory authority of all banking in the U.K. from the Financial Services Authority (FSA), this coming Monday, April 1, 2013. Under the existing British Banking Act, the FSA does not cover "non-deposit-taking financial firms, notably investment banks and financial market infrastructures." But as of April 1, the new Prudential Regulation Authority, a subsidiary of the Bank of England, will. This is essential if their proposed policy is to go operational.

4) The BOE-FDIC report says that the December 2012 study is just the first step, and that they will have detailed plans in place by the end of 2013 for each and every G-SIFI — which are all the principal international banks in the world.

This policy is already being implemented, at breakneck speed:

* Cyprus: Cypriot authorities announced on March 30 that depositors holding over 100,000 euros in the country's major banks, are going to be hit much harder than the 40% write-down originally reported. Rather, 37.5% of their holdings will be forcibly converted into common stock in the Bank of Cyprus ("Congratulations; you are now a proud owner of a bankrupt bank"). An additional 22.5% of their deposits won't even earn interest, let alone be returned; and 40% will accrue interest, but also won't be returned, unless "the bank does well."

* European Union: Cyprus is the "template" for all of Europe, Jeroen Dijsselbloem, the new President of the Eurogroup stated on March 25. He was seconded on March 28 by European Central Bank Governing Council member Klaas Knot: "This approach will be part of the European liquidation policy." On March 29, Swiss MEP Gunnar Hokmark added: "You need to be able to do the bail-in as well with deposits," amid press reports that specific legislation to this effect will soon be presented to the Euro Parliament.

* Spain: One million Spanish households were swindled into using their deposits to buy "preferred stocks" (preferentes) in most major Spanish banks. As in the case of bankrupt Bankia, those stocks are now worth less than 1% of their original value. According to the blog "Slog," the British subsidiary of the Spain's leading bank, Santander, has just informed its depositors that their money will now be held in its capacity as a bank, and not as a trustee, ie that Santander can attach it at will.

* Canada: The Hellasfrappe blog reports that Canada's "Economic Action Plan 2013" suggests that banks can be recapitalized by converting certain liabilities, including deposits, into regulatory capital.

To reiterate LaRouche's point: The question that must now be posed, is: How many members of the U.S. Congress are aware of this swindle, and are not supporting Glass-Steagall, knowing this?

Further Documentation: (http://larouchepac.com/node/26058)

[ThePythonicCow]

Charlie McGrath and Ellen Brown (Web of Debt) explain the seizure of bank accounts
Ellen Brown's audio was poor quality, which is a challenge for us hearing challenged to understand :).

Looking through her wordpress blog The Webt of Debt blog (http://webofdebt.wordpress.com), I find this recent post by Ellen Brown, excerpted below:

It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors (http://webofdebt.wordpress.com/2013/03/28/it-can-happen-here-the-confiscation-scheme-planned-for-us-and-uk-depositors/):



Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here (http://www.webofdebt.com/articles/big_brother_basel.php)); and that the result will be to deliver clear title to the banks of depositor funds.




Can They Do That?
Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here (http://books.google.com/books?id=bbEe7b6uEtUC&pg=PA83&lpg=PA83&dq=a+depositor+is+an+unsecured+creditor+of+the+bank+%26+cases&source=bl&ots=sz1VsR2Qrn&sig=yxgREMX75x3gpGlSy7d-e36ElyE&hl=en&sa=X&ei=OpFOUazgHeThiAKJyIHwAQ&ved=0CF4Q6AEwBA#v=onepage&q=a%20depositor%20is%20an%20unsecured%20creditor%20of%20the%20bank%20%26%20cases&f=false) and here (http://www.creditwritedowns.com/2013/03/ecb-creditor-preferences-bank-resolution.html).) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions. (pdf) (http://www.fdic.gov/about/srac/2012/gsifi.pdf)” It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:
An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock]. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.

In a related article, WARNING: FDIC and BOE blueprint for THE FUTURE GLOBAL BANKING FINANCIAL INSTITUTIONS (investmentwatchblog.com; March 29th, 2013) (http://investmentwatchblog.com/breaking-urgent-fdic-and-boe-blueprint-for-the-future-global-banking-finacial-institutions/):





The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.” It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:

All of Europe and UK will “bail in” and US well you have to read it to believe it!!!

http://www.fdic.gov/about/srac/2012/gsifi.pdf

Cyprus is a test run REPEAT a test run!!! They have spent the last two years rewriting the GLOBAL FINACIAL BANKING SYSTEM.

THE GLOBAL CRASH IS OH SO NEAR FRIENDS, PREPARE!!!!

All Wars Are Bankers’ Wars

Must see.


5hfEBupAeo4


7P2GDWrwYQY


¤=[Post Update]=¤


British Empire Strategizes on Saving Their System by Killing YOU

March 30, 2013 • 7:08PM

The Bank of England (BOE) and the U.S. Federal Deposit Insurance Corporation (FDIC) jointly authored a paper published on Dec. 10, 2012, titled "Resolving Globally Active, Systemically Important, Financial Institutions." Largely unnoticed at the time, the 15-page document has come into focus over the last 48 hours as a critical planning document by the British Empire's financial hit-men, which strategizes over how to save their hopelessly bankrupt trans-Atlantic financial system from the onrushing meltdown, including by stealing assets from depositors — in exactly the fashion that has just occurred in Cyprus and is spreading elsewhere — and leaving populations to scrounge in the rubble for their simple existence.

The report couches the discussion in terms of making "unsecured creditors" take the hit for bailing out the banks, and remains carefully ambiguous as to whether or not that includes depositors in those banks. But events now rapidly unfolding internationally, make it crystal clear that what is meant by "unsecured creditors" can in fact become depositors in those benighted, bankrupt banks. And it will not only be Cypriots, Spaniards and Italians that will be left to starve in order to bail out the banks; the same policy is planned for the United Kingdom, Canada, and the United States as well. It is coming soon to a bank near you!

Aha - GlassSteagallfan beat me to it (the joint FDIC and BOE paper) by about eight hours. That's what I get for not refreshing my tab before posting.

[ThePythonicCow]

I just added the parenthetical "(Plans to steal deposits in NZ, Spain, UK, USA, ...)" to this thread's title, to make it more obvious what was in this thread.

[ThePythonicCow]

A blogger I had not noticed before, Sherrie Questioning All (http://sherriequestioningall.blogspot.com/), has a good post on this topic at FDIC and BOE paper: One Controlling Entity for U.S./U.K. Financials. Plan for continuity of banks/money from "top down" and taking depositors money (http://sherriequestioningall.blogspot.com/2013/03/fdic-and-boe-paper-one-controlling.html):

~~~~~~~~~~~~~~









http://1.bp.blogspot.com/-3p43mitN6-s/UVZryehbuEI/AAAAAAAAG5k/Xc1O4iiDLTg/s400/banker.jpg
This is one of those government papers (http://www.fdic.gov/about/srac/2012/gsifi.pdf) from the FDIC website, where you read it and are able to see what they have planned.

The FDIC and the Bank of England put the plan together. It is basically a One (New) World Order for financials and banking. It even says the saving would be from the 'Top Down' in the paper.



This paper focuses on the application of “top-down” resolution strategies that involve a single resolution authority applying its powers to the top of a financial group, that is, at the parent company level. The paper discusses how such a top-down strategy could be implemented for a U.S. or a U.K. financial group in a cross-border context.

This paper was finished in December of 2012. This next paragraph proves they have been putting the plans in place to do 'bail ins' (steal depositor money) in the banks for awhile now.





The introduction of a statutory bail-in resolution tool (the power to write down or convert into equity the liabilities of a failing firm) under the RRD is critical to implementing a whole group resolution of U.K. firms in a way that reduces the risks to financial stability. A bail-in tool would enable the U.K. authorities to recapitalize an institution by allocating losses to its shareholders and unsecured creditors, thereby avoiding the need to split or transfer operating entities. The provisions in the RRD that enable the resolution authority to impose a temporary stay on the exercise of termination rights by counterparties in the event of a firm’s entry into resolution (in other words, preventing counterparties from terminating their contractual arrangements with a firm solely as a result of the firm’s entry into resolution) will be needed to ensure the bail-in is executed in an orderly manner.


Here is another sentence about the depositors bearing the burden of the bank.




requires that the losses of any financial company placed into receivership will not be borne by taxpayers, but by common and preferred stockholders, debt holders, and other unsecured creditors.


Read this next sentence and laugh. They have the nerve to put the words " minimizes moral hazard" in, when they are stealing people's money. They don't even know what the word "moral" means. They have none.




Once appointed receiver for a failed financial company, the FDIC would be required to carry out a resolution of the company in a manner that mitigates risk to financial stability and minimizes moral hazard. Any costs borne by the U.S. authorities in resolving the institution not paid from proceeds of the resolution will be recovered from the industry.


Number 30 specifically talks about U.K. stealing people's money:




The U.K.’s planned approach to single point of entry also involves a top-down
resolution. On the basis that the RRD will introduce a broad bail-in power, the U.K.
authorities would seek to recapitalize the financial group through the imposition of losses on
shareholders and, as appropriate, creditors of the firm via the exercise of a statutory bail-in
power. This U.K. group resolution approach need not employ a bridge bank and
administration, although such powers are available in the U.K. and may be appropriate under
certain circumstances.


Here is their 'top down' strategy again:




A top-down resolution by definition focuses on assigning losses and establishing new capital structures at the top of the group. This approach keeps the rest of the group, potentially comprised of hundreds or thousands of legal entities, intact.

Then read this little paragraph. Them working on having their One World Bank authority and overcoming individual country laws/governing bodies:




A key part of the work undertaken by the U.S. and the U.K. has been to identify the regulatory obligations of foreign authorities in response to a resolution originated by a home authority. Where any impediments to effective whole group resolution have been identified, authorities are in the process of exploring methods to overcome them.



Read the whole paper! You will find it basically says One World Government in many ways and it will put the future financial problems on the depositors of the banks. It also will worry about the Top Down. In other words "screw the people" we need to be sure we are protected!



This is outrageous and people need to see this is from their government!

If people won't believe and wake up, when they are reading a government paper about how the banks will take their money and putting all the pieces in place to do so. They even say it is with a One Authority!

~~~~~~~~~~~~~~

[Jeffrey]

British Empire Strategizes on Saving Their System by Killing YOU

March 30, 2013 • 7:08PM

[...]

* Canada: The Hellasfrappe blog reports that Canada's "Economic Action Plan 2013" suggests that banks can be recapitalized by converting certain liabilities, including deposits, into regulatory capital.
Further Documentation: (http://larouchepac.com/node/26058)

I just read about this today.

-----------

The Confiscation of Savings in Canada? Cyprus-Style “Bail-Ins” Proposed by Ottawa Government

[...]

The following comes from pages 144 and 145 of “Economic Action Plan 2013″ which you can find right here. Apparently the goal is to find a way to rescue “systemically important banks” without the use of taxpayer funds…




Canada’s large banks are a source of strength for the Canadian economy. Our large banks have become increasingly successful in international markets, creating jobs at home.

The Government also recognizes the need to manage the risks associated with systemically important banks — those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.

So if taxpayer funds will not be used to bail out the banks, how will it be done? Well, the Canadian government is actually proposing that a “bail-in” regime be implemented…




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. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.


So if the banks take extreme risks with their money and lose, “certain bank liabilities” (i.e. deposits) will rapidly be converted into “regulatory capital” and the banks will be saved.

In other words, the banks will just be allowed to grab money directly out of your bank accounts to recapitalize themselves.

That may sound completely and utterly insane to us, but this is how things will now be done all over the western world.

Sometimes a “bail-in” can be done by just converting unsecured debt into equity, but as we just saw in Cyprus, often when there is a major bank failure a lot more money is required to “fix the banks” than can possibly be raised by converting unsecured debt into equity. That is when it becomes very tempting to dip into uninsured back accounts.

Full article here: http://www.globalresearch.ca/the-confiscation-of-savings-in-canada-cyprus-style-bail-ins-proposed-by-ottawa-government/5329263

[gripreaper]

Change the unsecured creditors, known as depositors, into equity holders of a worthless bank, without their knowledge or permission? Sorry you lost all your money, but here's some worthless stock. How fun is that?

Welcome to the final pillaging of the wealth of the planet into the hands of the few, and the completion of serfdom for the rest of us!

[Jeffrey]

Change the unsecured creditors, known as depositors, into equity holders of a worthless bank, without their knowledge or permission? Sorry you lost all your money, but here's some worthless stock. How fun is that?

Welcome to the final pillaging of the wealth of the planet into the hands of the few, and the completion of serfdom for the rest of us!

And then let's scare everybody into running to the bitcoin because we know that a major portion of the internet is going to tank, and we are going to try to control what's left of it.

Gold and silver ... gold and silver.

[Jeffrey]

-----------

FDIC & Bank of England Create Resolution Authority for Unlimited Cyprus-Style “Bail-Ins” for TBTF Banks.


[...]

The Federal Deposit Insurance Corporation (FDIC) and the Bank of England—together with the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, and the Financial Services Authority— have been working to develop resolution strategies for the failure of globally active, systemically important, financial institutions (SIFIs or G-SIFIs) with significant operations on both sides of the Atlantic.

The goal is to produce resolution strategies that could be implemented for the failure of one or more of the largest financial institutions with extensive activities in our respective jurisdictions. These resolution strategies should maintain systemically important operations and contain threats to financial stability. They should also assign losses to shareholders and unsecured creditors in the group, thereby avoiding the need for a bailout by taxpayers.

Read full article: http://silverdoctors.com/fdic-bank-of-england-create-resolution-authority-for-unlimited-cyprus-style-bail-ins-for-tbtf-banks/

See also: http://www.infowars.com/could-the-banksters-grab-your-bank-deposits/

[Jeffrey]

-----------

Cyprus Banks and The End Game is a Huge Crisis-Peter Schiff

knJpAVNlW3Y

[Ron Mauer Sr]

Coming to a bank near you? The Cyprus solution. (http://www.jsmineset.com/2013/04/28/sinclair-day-of-financial-infamy-as-cyprus-depositors-flushed/)

Accounts frozen, depositors are now bank stockholders. When the bank fails, stock becomes worthless and depositors (stockholders) money is gone.

[Hervé]

'A monumental social experiment': The 'monarchs of money' and 'Quantitative Easing' (http://www.cbc.ca/news/world/story/2013/04/26/f-rfa-macdonald-power-shift-savers.html)

By Neil Macdonald, CBC News (http://www.cbc.ca/news/credit.html), Tue, 30 Apr 2013 15:25 CDT


Power Shift: First in a series on the rise of the central bankers and the global imposition of cheap credit
Video Content

http://thumbnails.cbc.ca/maven_legacy/thumbnails/225/21/macdonald-monarchs-042913_852x480_2382390735.jpg (http://www.cbc.ca/player/Shows/ID/2382392338/)
The Monarchs of Money 20:46 (http://www.cbc.ca/player/Shows/ID/2382392338/)
http://www.cbc.ca/player/Shows/ID/2382392338/


Quietly, without much public fuss or discussion, a new ruling class has risen in the richer nations.

These men and women are unelected and tend to shun the publicity hogged by the politicians with whom they co-exist.

They are the world's central bankers. Every six weeks or so, they gather in Basel, Switzerland, for secret discussions and, to an extent at least, they act in concert.

The decisions that emerge from those meetings affect the entire world. And yet the broad public has a dim understanding, if any, of the job they do.

In fact, these individuals now wield at least as much influence over the lives of ordinary citizens as prime ministers and presidents.


http://www.sott.net/image/image/s6/138932/large/imfsurge_300.jpg (http://www.sott.net/image/image/s6/138932/full/imfsurge_300.jpg)

© International Monetary Fund. See the surge in central bank holdings, the printing of new money, beginning in the spring of 2008 with the bank bailouts and the acquisition of long-term securities to keep interest rates down.




The tool they have used to change the world so profoundly is one they alone possess: creating money out of thin air.

There is an economic term for this: quantitative easing. More colloquially, it's called printing money.

Since the great economic meltdown in 2008, these central bankers have probably saved the world's economy from collapse, and dragged it into the unknown at the same time.

The amounts they have created are so vast as to be almost incomprehensible - trillions of dollars in pounds and euros, among other currencies.

At the end of 2012, the balance sheets of the world's largest central banks, those of the G20 nations and the eurozone, including Sweden and Switzerland, totalled $17.4 trillion US, according to Bank of Canada calculations from publicly available data.

That is nearly a quarter of global GDP, and slightly more than double the $8.5 trillion these same institutions were holding at the end of 2007, before the financial crisis hit.

Stock markets have risen on this tide of cheap money. So has real estate. So, arguably, has everything else.

But there are two big concerns with what this new central banker elite has done.

One is that no one really understands the consequences of pumping such vast amounts of money into the world economy. It's already distorted the prices of certain assets, and some fear hyperinflation or market crashes are inevitable (the subject of tomorrow's column).

The other is that it's caused a massive shift in wealth, from savers to borrowers, and is taking money out of the pockets of almost everyone approaching or at retirement age.

A war on savings

Probably the most painful of the consequences of quantitative easing has been borne by the elderly.

Most of that generation grew up believing that if you save and exercise prudence that you will earn at least a modest return on your hard-earned money to keep you comfortable in your old age, perhaps along with a pension.

But the money-printing orgy of the last five years looks to have shot that notion to smithereens.

Very deliberately, the central bankers have punished savers, pushing interest rates so low that any truly safe investment - and older people are always advised to play it safe - yields a negative return when inflation is factored in.

The policy has savaged pension and savings returns worldwide, but particularly in Britain, a nation of savers and pensioners.

There is more money in British pension funds than in the rest of Europe combined, and now that money is just sitting, "dead," as some call it, not working for its owners.

Ask Judy White, a retiree in her late 60s who lives in Teddington, south of London, with her husband, Alan.

This year, the Bank of England shattered her retirement. Her pension benefit was effectively slashed by half.

"I don't understand what quantitative easing is, except that it's printing money," she says. "But I do understand that I now have 50 per cent less.

"What they have done is take money from people who have been really careful all their lives."

On the backs of the virtuous

Actually, by the Bank of England's own reckoning, the £375 billion of quantitative easing it has carried out since 2008 has cost British savers and pensioners about £70 billion, roughly $100 billion. (At the same time, the richest 10 per cent of British households saw the value of their assets increase over the same period, the bank reported.)

That cost to the elderly is largely because pension payouts in the U.K. are pegged to the yields on government bonds, and quantitative easing has forced those yields down to almost nothing.

Speaking for the Bank of England, Paul Fisher acknowledges that the bank has created a paradox: It does want people to save and be prudent - just not right now.

"We try," he says, "to get people to do things now to get out of this mess, which in the long run we prefer not to do."

In other words, might we please have some more of the wild consumer spending and borrowing that helped get us all into this situation, at least for a while?

The plain fact, though, is that central bank- and government-imposed solutions to disasters caused by irresponsible, greedy, foolish behaviour are almost always carried out on the backs of the virtuous.

So it was with the bank rescues in 2008, and so it is with quantitative easing.

As Ros Altmann, a longtime pension manager and director of the London School of Economics, puts it, quantitative easing has amounted to a "monumental social experiment" - a large-scale transfer of wealth from older people to younger people.

"Anybody who was a saver and has got some accumulated savings will have had a reduction in their income," she says.

While "anyone who had a big debt, particularly mortgage debts, would have had improvement in their income because their interest payments have gone down."

As stupid as it might sound, older people everywhere would probably be better off if they'd abandoned prudence and borrowed more.

That is obviously not what the central bankers or our political leaders want. But that's the situation they've created.

What's the alternative?

This transfer from savers to borrowers has also been taking place here in the U.S. and in Canada, to varying degrees.

Some U.S. pension funds are in danger of default, at least partially because of these artificially low interest rates, and Canadian pension funds that are heavily invested in safer debt have been injured, too.

In an interview in his Ottawa office, Bank of Canada governor Mark Carney defends quantitative easing elsewhere, and his own low-interest rate policy, though he does acknowledge that it has been hard on pensioners and savers.

Like all central bankers, he argues the (impossible to prove) negative: There have been consequences, yes, but if we hadn't done this, things would be far, far worse.

As for carrying out these solutions on the backs of the virtuous: "I don't see a world where the virtuous are rewarded if we suffered a second Depression," he says. "These are the stakes."

Carney would prefer not to talk about the enormous power central bankers have gained since 2008, saying only: "We have a tremendous responsibility ... because of a series of mistakes that were made in the private sector and the public sector."

As Canada has performed better than most Western nations, Carney has not ordered any new money printing.

But he has kept interest rates down, and that has fed the real estate booms over the last few years in Vancouver, Toronto, Calgary and elsewhere.

He scoffs at the suggestion that "the party" will end at some point. "I am not sure we are having a party right now," he says. "It doesn't feel like a party."

And, in fact, he has repeatedly expressed concern at the huge debt levels Canadians are accruing, at least partly because of his low-rate policies.

But surely he understands the anger of an older person watching their savings being eroded, I ask him.

Carney smiles grimly. That question is clearly a sore point. He gets a lot of mail on the topic.

Canadians, he says, must understand that the alternative is massive unemployment and thousands of businesses going under, and "my experience with Canadians is that they tend to think about their neighbours and their children and more broadly ... they care a little bit more than just about themselves."

Asked whether central bankers are not in fact enabling irresponsible behaviour by speculators enamoured of cheap money, not to mention politicians who can't curb their borrowing and spending, Carney merely remarks that voters in a democracy get the governments they choose.

SOTT (http://www.sott.net/article/261442-A-monumental-social-experiment-The-monarchs-of-money-and-Quantitative-Easing) Comment:
'Quantitative easing' has been around as long as civilization(s) have relied on money. Economic historians refer to it as 'currency debasement':

Gold, currency debasement and the fall of the Roman Empire (http://blogs.telegraph.co.uk/news/jamesdelingpole/100212213/gold-currency-debasement-and-the-fall-of-the-roman-empire/)
The Telegraph, UK
April 15, 2013
What's happening to fiat currency, they note, is much the same as what successive Roman emperors did to the denarius - debasing it to the point of near worthlessness. They quote The Collapse of Complex Societies by US anthropologist Joseph Tainter, which argues that monetary collapse was one of the main reasons for the Fall of the Roman Empire.
"By debasing currency, increasing taxes and imposing stringent regulations on the lives of individuals, the Empire was, for a time able to survive. It did so however by vastly increasing its own costliness and in doing so decreased the marginal return it could offer its population. These costs drained the peasantry so thoroughly that population could not recover from outbreaks of plague, producing lands were abandoned and the ability of the state to support itself deteriorated." Roman emperors had to do all the same things our 'monarchs of money' are doing today because everything was going to pot! Yes, certain types are well-positioned to take advantage of the chaos to enrich themselves (and thus speeding up the crash and spreading mass misery through society) - the senatorial class in Rome, the goldsmiths in medieval times and the banksters on Wall Street today - but given what we now know of the climatological and environmental factors that repeatedly bring down civilizations, it is probably more accurate to say that monetary collapse is a symptom of economic downturn, and not a cause...

Comets and the Horns of Moses (http://www.sott.net/article/Celestial%20Intentions:%20Comets%20and%20the%20Hor ns%20of%20Moses)

[Hervé]

Our Chains are Forged by Usury
April 30, 2013

Money should be interest-free

The New World Order is based on debt and usury. Humanity is being re-engineered and enslaved to ensure this fictitious debt is repaid. The Illuminati bankers are God redefining reality to conform to their interests and perversity.

by Anthony Migchels
(henrymakow.com)

Usury is the original sin in the economic sphere and the root cause of all our economic and political problems.

The truth is we have everything we need to create an interest-free money supply. A usury-free economy ends poverty and saves our souls in the process.

The love of money is the root of all evils. Usury is the weaponization of money love. It feeds the avarice of the usurer. It forces ever more debtors into ever more immoral behavior. It replaces love with commerce. It corrupts commerce, which becomes ever more exploitative. It rips apart the fabric of society and makes a mockery of any kind of social contract.

Billions of people live in abject poverty all over the world because of it. Entire communities, nations are gutted to pay the interest to the opulent. Nobody counts the billions dying prematurely from its effects.

Poor countries pay ten times more interest on their foreign debts than they receive development aid.

Even when not in debt, forty percent of our income is lost to interest passed on in prices by producers. The many pay anywhere between five and ten trillion per year to the wealthy. All other rents ultimately are based on cost for capital and would hardly exist without usury.

<It is the ultimate centralizer of power and it is global. It has been growing at a compound interest rate for centuries, and now this incredible cancer is ready to devour the host body.

The European nations put up $4.5 trillion in handouts, easy credit and guarantees to 'save' their banks and the euro. The Fed provided an unimaginable $16 trillion dollars in easy credit to its banking buddies. Much of it was never repaid. This is 'necessary' because without banks we would not have money. So the West put up $20 trillion to have some bits and bytes and paper and coins circulate to exchange goods and services.

Surely the end of our civilization is near when we allow such rapacious plunder while there is no money to save the poor from starvation and the Earth from pollution.

SENSELESS

We think: "without interest there will be no credit! I would not lend if I didn't get anything back."

But the Money Power doesn't lend anything!

Money is just bookkeeping and credit is an automatic result of double entry bookkeeping, which by its very nature knows debit and credit.

The problem is not the creation of money! Quite the opposite: it's marvelous that we never need to have a shortage of money.

The problem is when the bookkeeper starts raping the debitor with interest for no other reason than the associated minus. And takes all this interest himself. Just for the service of bookkeeping!

We pay $300k in interest in thirty years for our $200k mortgage which was created by entering some numbers in a computer bookkeeping application!

GOLD SOLVES NOTHING

We don't want to pay $300k interest in coin! We want bookkeeping at cost-price! Interest-free!

Even in ancient times Gold and Silver were circulated by private parties. This is touted as a wonderful free market operation. But who circulated the specie? Those owning the mines, of course!

They circulated the metal by lending it out at interest and manipulated the volume from day one.

Today, nobody knows how much Gold there is. All the Gold mines are owned and controlled by the Money Power. Those owning the mines are the Money Power, that's how it all started. Vast amounts of Gold are in their vaults, ready to be unleashed onto the market through usurious lending, aiming to create asset bubbles, only to stop lending a little later to create a deflationary crash when people pay off their loans.

It is exactly the same way they create the boom-bust cycle with paper based money.

Just look at what they are doing to Gold today. They have been doing this forever.

The Golden Calf is the archetypal symbol of avarice; the Money Power is unthinkable without it.

WE WANT INTEREST-FREE MONEY

Jesus admonished us to lend freely, expecting nothing in return. The Vedas abhor usury. Moses forbade it. Half of the Q'uran is Allah threatening severe punishment for those taking Usury.

Money is bookkeeping. We don't need interest for savers. The bank doesn't need savers. Debit and Credit are the two sides of the coin in bookkeeping. They are automatic.

Yes, the volume must be managed, but that is unavoidable. No monetary system can exist without managing volume. The problem is not management, it is allowing vultures to do it.

The reason we have a boom-bust cycle is because we allowed private parties, banks, to manage the volume in their own interest. They set up Central Banks to create the illusion of 'officialdom'.

Saying 'the market must do it' is saying the Plutocracy has been doing a good job over the last 5000 years.

We want interest-free mortgages, no income tax, no poverty. We want abundance, good will, a cultural rebirth, fairness and the end of Plutocracy.

Kill Usury!

Related:
On Interest
(http://realcurrencies.wordpress.com/2009/11/26/on-interest/)Budget of an Interest Slave
(http://realcurrencies.wordpress.com/2012/01/17/budget-of-an-interest-slave-2/)The Problem is not Debt, it's Interest (with Video) (http://realcurrencies.wordpress.com/2012/08/25/the-problem-is-not-debt-its-interest-with-video/)
Meet the Real Deal: Michael Hoffman on 'Usury in Christendom' (http://realcurrencies.wordpress.com/2013/01/17/meet-the-real-deal-michael-hoffman-on-usury-in-christendom/)
The Fight against Usury by Juri Lina
(http://www.whale.to/c/lina.html)Why we need Monetary Innovation by Margrit Kennedy (http://www.margritkennedy.de/media/financialstabilityfinalmk_46.pdf)

Anthony Migchels is an Interest-Free Currency activist and founder of the Gelre, the first Regional Currency in the Netherlands. You can read all of his articles on his blog Real Currencies (http://realcurrencies.wordpress.com/) -

See more at: http://www.henrymakow.com/#sthash.2N9LHKB3.dpuf

[conk]

Thanks.

I'm just amazed at how easy it is for governements and banks to commit grand larceny on such a massive scale, and at how THE PEOPLE ALLOW THEM TO GET AWAY WITH IT !!

So, we understand that nothing has changed in thousands of years. Lords and Kings, they are divine. We, the peasants and serfs, are made in sin and must seek salvation from a higher authority. No population that is taught it is made from dirt (and not light) will ever rise up.