Wednesday, December 30, 2015

“Bail-in Directive” Begins January 1st 2016 Throughout Europe

A new bail-in system, the experimental program imposed on Cyprus to avert a banking crisis, will be implemented throughout Europe on January 1st 2016. The bail-in system, modeled after that Cyprus bail-in, executed without much of protest from the masses, grabs deposits rather than taxpayer funds such as Emergency Stabilization Act of 2008. This new-and-improved policy, a clever shell game that grabs money directly from taxpayers' bank deposits greater than 100,000 Euros rather than indirectly through taxation, thus, saving face for politicians if the banking system implodes, changes nothing. Grabbing deposits or taxpayer funds are simply two sides of the same coin.

On a positive note, nobody cares really cares, so the media's not covering it. That is, until the banks start failing and deposits start disappearing.

Headline: Deal reached on bank “bail-in directive”

Parliament and Council Presidency negotiators reached a political agreement Wednesday on the draft bank recovery and resolution directive, the first step towards setting up an EU system to deal with struggling banks. This directive will introduce the “bail-in” principle by January 2016, thereby ensuring that taxpayers will not be first in line to pay for bank failures.

The directive is to enter into force on 1 Jauary 2015 and the bail-in system is to take effect on 1 January 2016.

Welcoming the deal, Gunnar Hokmark (EPP, SE), the MEP who steered the legislation through Parliament, said "We now have a strong bail-in system which sends a clear message that bank shareholders and creditors will be the ones to bear the losses on rainy days, not taxpayers. At the same time we also established clear rules to deal with the most exceptional cases, in which overall financial stability is in danger."



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