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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (101680)	6/28/2013 12:59:12 PM
From: Riskmgmt	Read Replies (3) \| Respond to of 217574

One would think gold would shoot up $100 on this news. Am I the only one who thinks this is a big deal? I mean isn't depositor insurance (FDIC in US) there to promote confidence and prevent bank runs? Surely this is a reversal of that. Keeping over 100,000 Euros in the bank means you risk losing savings. Great for the banks they get to leverage that money and play at the great interest swaps casino and if they win big, then big performance bonuses all around. What if they loose? The tab is yours dear savers!! You would have to be crazy to keep money there. EUROPEAN PARLIAMENT TO PUSH FOR DEPOSITORS WITH ABOVE 100,000 EUROS TO FACE BAIL-IN UNDER NEW BANK RESOLUTION LAW - EU LAWMAKER - RTRS The European Parliament will demand that big savers take losses if their banks run into trouble, a senior lawmaker told Reuters, adding momentum to a policy unveiled as part of a Cypriot bailout. Although some policymakers have sought to portray Cyprus and the losses suffered by depositors at two of its banks as a one-off, many experts believe it marks a dramatic change in tack in how Europe deals with troubled banks, to spare taxpayers who have been on the hook for previous bailouts. Jeroen Dijsselbloem, head of the Eurogroup of euro zone finance ministers, said on Monday that in future, the currency bloc should first ask banks to recapitalise themselves, then look to shareholders and bondholders and then "if necessary" to uninsured deposit holders. Now the likelihood is rising that tough treatment of big depositors will be written into a new EU law, making losses for large savers a permanent feature of future banking crises. "You need to be able to do the bail-in as well with deposits," said Gunnar Hokmark, an influential member of the European Parliament, who is leading negotiations with EU countries to finalise a law for winding up problem banks. The European Parliament has an equal say alongside EU countries when deciding who must bear the brunt of future bank failures such as those now being seen on Cyprus. "Deposits below 100,000 euros are protected ... deposits above 100,000 euros are not protected and shall be treated as part of the capital that can be bailed in," Hokmark told Reuters, adding that he was confident a majority of his peers in the parliament backed this line. http://www.zerohedge.com/news/2013-03-26/here-we-go-again-eu-lawmaker-push-bail-resolution-law-deposits-over-€100k