Not just Cyprus! Who Else Has Plans To Grab Small Depositor Savings To Bail Out Failing Big Banks? [View all]

[sabrina 1]

Maybe it is time for people to take any money they still have out of savings accounts in any of the Big Banks, especially since there is virtually nothing to gain from lending them your money anymore in terms of interest. And now, after the outrageous attempt to set up yet another scheme to make ordinary people pay for any failures of the Big Banks, it seems to me that it is very risky to trust even ten dollars to these Banks.

This article explains the 'old order' of protection for depositors where people were protected UP TO a certain amount of money.

http://www.golemxiv.co.uk/2013/03/plunderball-the-new-euro-banking-game/

Plunderball – The new Euro banking game

It used to be that below the guarentee limit your money was safe. It was only any amount above the guarantee, that you could lose in a restructuring. When a bank went under the normal bankruptcy rules swung into action (I’m leaving aside the TBTF gorilla in the room. Let’s not poke him just yet).TBTF aside – the collapsed banks’ assets would collected in into a pile and all the bank’s creditors (those who bought its debt, lent it money, put their money into it) would be put on a list in order of seniority, with share holders at the bottom, unsecured and Junior bond holders next with Senior insured bond holders at the top. Depositors were always ranked up there with Senior bond holders. Those at top would get most if not all of their money back and not take a loss, those at the bottom would lose everything.

The article goes on to explain how that system worked and then claims that the system has now been completely 'torn up' using Cyprus as an example.

So what now? What happens in this new disorder?

Well it turns out other countries have been preparing to enforce this same – ‘force losses on all depositors’ – idea. New Zealand, as reported in an article by interest.co.nz has been working on what it calls its new Open Bank Resolution Policy (OBR). If put in place – and that is the NZ government’s intention,

The implementation of OBR would see all unsecured liabilities that rank equally among themselves, including deposits, having a portion frozen

Link to the story of NZ's Open Bank Resolution (OBR) here:

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10872361
Risk To Savings If Bank Fails

The article links to Zero Hedge's story on how Spain is also considering this kind of scheme to help bail out the banks if they fail again. And it goes on to show that Italy may also have similar plans.

And what about the UK and the US? Well, if Europe and NZ are in on the scheme is there any doubt that Britain and the US are not planning on forcing the people to once again bail out Wall Street Failures? This author thinks so:

And that is what I think is being planned in the UK and USA.

Will the UK and USA also go for the automatic seizure of money from accounts? My guess is they have been quietly planning on it but will now think twice about admitting to it. Preferring to keep it quiet until the next collapse when ‘circumstances call for desperate measures’ etc etc.

The reality is the banks are still bust – even the ones making huge profits – and when – not if – when the next bubble bursts and one bank starts to bring down another – they will all come for your money and we will all be collectively punished in order to make sure the wealthy and the powerful stay that way.

Emphasis mine.

It's not as if they have not done this already, just in a different way. As pointed out in these articles, there is never going to be an end to these bailouts or to the people footing the bill.

So when, as Occupy has asked, are we going to start seeing them being allowed to fail, and then begin the process of prosecuting the criminals?

The world never needed a movement like Ocuupy Wall Street than it does right now. Because it is obvious that most Governments are not on the side of the people. And that is why Wall St hates Occupy. They bought governments and thought they were clear to keep robbing the people, but then OWS appeared on the scene and to them, it was not just a big threat, it appears to have been the only threat to their criminal activities.