I wonder how many actually have any memory of what happened in Cyprus?
- It was not that long ago, and already the UK, US, EU, Canada, Australia, and New Zealand have mechanisms ready and in place for bail-ins.
Still doubt?
- Then note that the recent "Future of Banking..." conference just confirmed that bail-ins [read: deposit confiscation] will be used. No more bail-outs, it's going to be bail-ins from now forward.
The next time a Bank gets into trouble because it was stupid, depositor funds will be confiscated [read: stolen]to get the Bank out of trouble.
Of course, it is being called a "resolution tool" because that sounds much nicer than calling it what it is...theft.
- It reminds me of how 'sociopath' is often used instead of 'psychopath' because it sounds nicer while meaning the same thing.
Wednesday, 4 December 2013
Remember Cyprus?......................from Rico
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Depositor's accounts will be confiscated in a bank bail-in. They then will be reimbursed in shares of the affected bank(like anyone will want that stock). My question is, are you still an unsecured creditor? All stocks are basically owned by DTC (Depository Trust Co.) to ensure quick electronic trading. They have/own the title to the shares. You are the 'beneficial owners' of shares. You do not have the title! In a bankrupcy sale the title will mean a lot. So does this mean unsecured creditors are doubly screwed?
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