As the EU feasts on the Cypriot depositors money, one has to wonder if this could happen elsewhere in Europe (probably) or in the US. Surely not the US.
Not so fast. The Confiscation Scheme Planned for U.S. and U.K. 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. ... The 15-page FDIC-BOE document is called Resolving Globally Active, Systemically Important, Financial Institutions<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*. No exception is indicated for insured deposits in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks. The directive is called a resolution process, defined elsewhere<http://www.ey.com/Publication/vwLUAssets/Recovery_and_resolution_planning/$FILE/Recovery_and_resolution_planning.pdf> as a plan that would be triggered *in the event of the failure of an insurer* . . . . The only mention of insured deposits is in connection with existing UK legislation, which the FDIC-BOE directive goes on to say is inadequate, implying that it needs to be modified or overridden. ... An FDIC confiscation of deposits to recapitalize the banks is far different from a simple tax on taxpayers to pay government expenses. The governments debt is at least arguably the peoples debt, since the government is there to provide services for the people. But when the banks get into trouble with their derivative schemes, they are not serving depositors, who are not getting a cut of the profits. Taking depositor funds is simply theft. Lot's more in the article about the derivative holdings of BOA and JPM (75 & 79 Trillion respectively) and how derivatives have become deregulated and this effect on depositors if the derivatives fail. J - Ninety percent of politicians give the other ten percent a bad reputation. - Henry Kissinger Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:362261 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
