It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors

The bail-in may become relevant soon.

http://www.huffingtonpost.com/ellen-brown/banks-confiscation_b_2957937.html

Here’s Where the Next Bank Deposit “Bail-In” Will Strike…

http://www.internationalman.com/articles/heres-where-the-next-bank-deposit-bail-in-will-strike

System-Wide Bail-In And Global Financial Meltdown

Finance 101:  when bond yields (interest rates) rise, bond prices decline.  What was considered "safe" will prove to be anything but.  Which means banks, insurance carriers and pension funds will be in deep doo-doo.

http://kingworldnews.com/system-wide-bail-in-and-global-financial-meltdown/

Presenting the most pitifully capitalized central bank in the West [Hint: It’s NOT the Fed]

http://www.sovereignman.com/finance/presenting-the-most-pitifully-capitalized-central-bank-in-the-west-hint-its-not-the-fed-14950/

Germany Blesses "Bail-In" Deposit Confiscation Plan For Failing EU Banks

http://www.zerohedge.com/news/2014-07-09/germany-blesses-bail-deposit-confiscation-plan-failing-eu-banks

Moody’s cuts outlook for Canadian bank debt to negative over ‘bail-in’ regime

What bankers and regulators don't tell you with bail-ins is that while taxpayers won't foot the bill for the next banking crisis, depositors will be on the hook.  In other words, depositors will be converted to credit holders and unsecured depositors, and will thus take a haircut in the next bail-out of banks.

http://business.financialpost.com/2014/06/11/moodys-downgrades-outlook-for-some-of-canadian-bank-debt-over-bail-in-regime/

An invaluable lesson for U.S. Citizens from the bank confiscation in Cyprus

http://www.sovereignman.com/finance/invaluable-lesson-bank-confiscation-cyprus-13858/

US Fed to get greater powers: Bernanke

As usual, the headlines are misleading.  The Fed is enacting laws--in conjunction with the International Monetary Fund--to prevent a taxpayer-funded bank bailout at the onset of the next financial crisis.  It sounds reasonable and noble enough, given the plundering of tax funds to recapitalize the collapsed banking industry in 2008.

The problem is the solutions they are now proposing, but are not being reported to the masses, include bank bail-ins, which target credit holders and "investors" in the bank.  In other words, they will raid customer deposits.

http://www.heraldsun.com.au/business/breaking-news/us-fed-to-get-greater-powers-bernanke/story-fni0xqe4-1226756295740

Bail-out Is Out, Bail-in Is In: Time for Some Publicly Owned Banks

http://www.huffingtonpost.com/ellen-brown/bailout-is-out-bailin-is-_b_3178702.html

Take Your Money Out of the Bank!

http://youtu.be/M-2eJQqXm7s

Caveat Depositor

http://www.sprott.com/markets-at-a-glance/caveat-depositor/

“If there is a risk in a bank, our first question should be: ‘Ok, what are you the bank going to do about that? What can you do to recapitalise yourself?’ If the bank can’t do it, then we’ll talk to the shareholders and the bondholders. We’ll ask them to contribute in recapitalising the bank. And if necessary the uninsured deposit holders: ‘What can you do in order to save your own banks?’” – Jeroen Dijsselbloem, March 26, 2013 ¹

A deal has just been struck with Cyprus. However, it was not the deal that Cyprus saw other countries receive. This was not the deal received by Greece, Italy and Spain. There were no bailed out banks in the aftermath. There was no transfer of risk from over-levered banks to the taxpayers. The risk was pushed back onto the banks. Their equity was wiped out. Their bondholders were wiped out. Their uninsured depositors saw their accounts raided for additional liquidity. It wasn’t just that the rules of the game had changed, the game itself changed. By raiding the depositors’ accounts, a major central bank has gone where they would not previously have dared. The Rubicon has been crossed. Going forward, this is expected to be the “template” for dealing with risky, over-levered banks and the countries which support them.

Australia Plans Cyprus-Style “Bail-In” Of Banks In 2013-14 Budget

Coming to all developed countries:  the government will confiscate your bank deposits to save banks from collapsing.

http://barnabyisright.com/2013/07/10/australia-plans-cyprus-style-bail-in-of-banks-in-2013-14-budget/

EU makes bank creditors bear losses as Cyprus bail-in becomes blue-print for rescues

This answers any doubts as to whether depositors will be on the hook when their bank collapses.  Taxpayers funded the last round of bank bailouts.  Depositors will be next.

http://www.telegraph.co.uk/finance/financialcrisis/10145355/EU-makes-bank-creditors-bear-losses-as-Cyprus-bail-in-becomes-blue-print-for-rescues.html

Regulating Large Financial Institutions

http://federalreserve.gov/newsevents/speech/stein20130417a.htm 

"Thank you. I'm delighted to be here, and want to thank the International Monetary Fund and the organizers of the conference for including me in a discussion of these important topics. I will focus my remarks today on the ongoing regulatory challenges associated with large, systemically important financial institutions, or SIFIs.¹  In part, this focus amounts to asking a question that seems to be on everyone's mind these days: Where do we stand with respect to fixing the problem of "too big to fail" (TBTF)? Are we making satisfactory progress, or it is time to think about further measures?

I should note at the outset that solving the TBTF problem has two distinct aspects. First, and most obviously, one goal is to get to the point where all market participants understand with certainty that if a large SIFI were to fail, the losses would fall on its shareholders and creditors, and taxpayers would have no exposure. However, this is only a necessary condition for success, but not a sufficient one. A second aim is that the failure of a SIFI must not impose significant spillovers on the rest of the financial system, in the form of contagion effects, fire sales, widespread credit crunches, and the like. Clearly, these two goals are closely related. If policy does a better job of mitigating spillovers, it becomes more credible to claim that a SIFI will be allowed to fail without government bailout." - Jeremy Stein, Federal Reserve Governor

U.S. Banks Present Industry-Led Crisis Plan To Federal Reserve

The sleepy-eyed US media is finally reporting about bank bail-ins.  This policy of saving banks from collapse is coming.

http://www.valuewalk.com/2013/06/u-s-banks-crisis-plan-fed/

The bail-in mechanism would be designed to place a greater burden on creditors, as opposed to the tax payers, in the event of a bank’s collapse.

Euro zone ministers to discuss bail-in rules in bank rescues

http://in.reuters.com/article/2013/06/17/eurozone-esm-bailin-idINDEE95G0FS20130617

The Real Story of the Cyprus Debt Crisis (Part 1)

http://charleshughsmith.blogspot.com/2013/06/the-real-story-of-cyprus-debt-crisis.html

Why do the debt crisis in Cyprus and the subsequent "bail-in" confiscation of bank depositors' money matter? They matter for two reasons:

1. The banking/debt crisis in Cyprus shares many characteristics with other banking/debt crises.

2. The official Eurozone resolution of the crisis--the "bail-in" confiscation of 60% of bank depositors' cash in an involuntary exchange for shares in the bank (which are unlikely to have any future value)--may provide a template for future official resolutions of other banking/debt crises.

In other words, since the banking/debt crisis in Cyprus is hardly unique, we can anticipate the resolution (confiscation of deposits) may be applied elsewhere.

No Paper Is Safe From A Bail-In: FSB

http://www.bullionbullscanada.com/intl-commentary/26112-no-paper-is-safe-from-a-bail-in-fsb

ECB Coeure: Moving from Bail-Out to Bail-In Environment

What is a bail-in vs. a bail-out, you ask?  The bank bail-outs were funded by governments (i.e. tax payers).  Bail-ins will come from bank depositors.  That means YOU.

http://online.wsj.com/article/BT-CO-20130612-704910.html

BERLIN--Europe is currently moving from a bail-out environment to a bail-in environment when it comes to rescuing failing banks, a member of the European Central Bank's executive board said Wednesday.

In designing a common bank resolution mechanism for Europe, European Central Bank policymaker Benoit Coeure said making shareholders and investors, rather than taxpayers, pay for the mistakes made by banks will lead to a fairer and sounder environment.

"Before deciding on the architecture of resolution and recovery, we need to know who's going to pay," Mr Coeure said.

Cautioning that Europe lacks urgency on creating a more resilient central governance and reform to spur growth, the central banker said "it seems like it's going to take decades. This is a worry--we don't have decades."

Separately, Mr Coeure said that central bank independence is under strain in Europe, as "we see a rise of nationalistic temptations everywhere in Europe."

Mr. Coeure made the remarks during a panel discussion at an event on German-American dialogue in Berlin.

He also said inflation expectations for the euro zone are anchored at 2%.

EU draft bank rescue law would not shield big deposits

All the skeptics insisted the Cyprus "bail-in" of banks by depositors losing out was a one-off event.  The naysayers are naive.  The Cyprus bail-in is the blueprint for the rest of the banking world.

http://www.reuters.com/article/2013/05/20/us-eu-banks-idUSBRE94J0AC20130520