Shares and stocks are tumbling around the world, with investors worried that the next global crisis has already begun. There is considerable uncertainty and nervousness amongst economists and trend forecasters. Government’s sooth jittery markets with misinformation in the hope that confidence does not evaporate and their legitimacy with it.
If another crisis gets underway — do you think that the money you have earned, paid tax on and put in a bank for a rainy day or for an unexpected bill is safe? Because if you do, you’re wrong.
Automated grand theft on an unprecedented scale has been agreed with unelected EU officials, the Bank of England and US authorities.
In a Joint paper issued by the US Federal Deposit Scheme and the Bank of England dated 10th December 2012 a statement included the words; “deposit schemes may have to contribute to the recapitalisation of a failed bank”.
“The U.K. has also given consideration to the recapitalization process in a scenario in which Systemically Important Financial Institution (SIFI) liabilities do not include much debt issuance at the holding company or parent bank level but instead comprise insured retail deposits held in the operating subsidiaries. Under such a scenario, deposit guarantee schemes may be required to contribute to the recapitalization of the firm“.
This 2012 paper puts in place procedures in the event of the failure of a systemically important bank. It clearly states that depositors are to be protected — that is, until options have ceased to exist. Next time, the state will be last in line, not first. Depositor bail-in schemes are now a reality.