Back in September we published an article \u201cGrand Theft Auto \u2014 UK and EU Bank Depositor Bail-In Regime Implemented\u201d in which we described how banks throughout the EU would simply steal your deposits if any of them failed.<\/p>\n
The first paragraph stated \u201cShares 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\u2019s sooth jittery markets with misinformation in the hope that confidence does not evaporate and their legitimacy with it.\u201d<\/p>\n
On the first day of 2016 all banks located within the EU follow the \u2018Anglosphere\u2019 nations of Britain, America, Australia, New Zealand and Canada into an agreement, where the next bank failure and bail-in could cost depositors all their money.<\/p>\n
Think it won\u2019t happen. Six years after the last financial calamity caused by reckless bankers aided by negligent politicians in late 2014, one in five European banks failed basic stress tests that would see bankruptcy on the first hint of trouble. What did they need to get past that stress test? Twenty four thousand million euros.<\/p>\n
One should not forget that the Bank of Cyprus passed its stress test with flying colours just before it crashed and burned. That bail-out and bail-in came in at \u00e2\u201a\u00ac23 billion to the taxpayer but it also took 47.5% of depositors money over \u00e2\u201a\u00ac100k as well.<\/p>\n
Think it won\u2019t happen to British Banks? This from the Financial Times \u201cThe Bank of England\u2019s stress tests of the banking sector have been attacked as \u201cfatally flawed\u201d for setting hurdles that are too easy to clear and giving false comfort about the safety of the financial system.\u201d<\/p>\n