The concepts of bank bail-ins and negative interest rates are relatively new and misunderstood by the general public. As people realize that their money is not safe from their government’s irresponsible fiscal policies, bank failures will become a self-fulfilling prophecy. You only have two choices: take your money out now or take it out later after the government has taken their “fair share”.
David DeGerolamo
Bank Of England Leads Push For Deposit Confiscation
Talks under the auspices of the global Financial Stability Board (FSB) over the summer are approaching a key stage as officials aim to clinch an agreement on bail-ins and the bailing in of creditors including depositors of banks.
Finance officials are hoping to pave the way for proposals to be tabled at the G20 leaders meeting at the Brisbane summit in November.
The issue is of major consequence to globally systemic lenders such as Citigroup, Barclays and BNP Paribas, as some will have to issue billions of dollars of fresh bonds earmarked to carry losses.
The issue is of major consequence also to depositors who could see their savings confiscated as happened in Cyprus.
