Bankers Want Your Savings As Part of Their Next Bail-Out

More on "bail-ins"--

http://www.dailykos.com/story/2014/12/03/1348957/-Bankers-Want-Your-Savings-As-Part-of-Their-Next-Bail-Out#

Enter the Financial Stability Board. In her blog post "New G20 Rules:Cyprus-Style Bail-Ins to Hit Depositors and Pensioners" http://ellenbrown.com/... Ellen Brown explains:

At the G20 meeting last month in Australia, the FSB presented and received approval for their latest plan for conducting the "resolution proceeding", i.e. bankruptcy, for a troubled TBTF bank. Cutting to the chase, the pertinent part for my dear readers is that instead of their tax money going to bail out the banks, it will potentially be their bank deposit money! The FSB recommended that governments make statutory the confiscation of depositors' money (also known as unsecured debt) if the assets of the bank plus all secured debt is insufficient to keep them afloat. This has come to be known as a bail-in.

Further, the FSB has put our pension funds at risk as well. They require banks to hold a buffer of securities to be liquidated to prevent insolvency ahead of resorting to deposits. Among other instruments in these buffers are bonds in which pension funds are invested.

Let's suppose you have a good amount of cash in a Wells Fargo savings account. Furthermore, your pension fund is invested in bonds which WF owns in their emergency buffer account. The next financial crash occurs. The TBTF banks, now with greater risk exposure than ever, start tumbling. Heading for insolvency, bank regulators force WF to liquidate its assets and it's secured debt to raise cash. If that is insufficient the buffer securities will be sold off next. There goes a chunk of your pension fund's money. And if THAT is insufficient the regulators will go after the cash in large deposit accounts first, then, perhaps, get to yours.

The bottom line is, the government is preparing to legitimize the theft of our savings in order to prop up irresponsible and unscrupulous bankers. A far better solution, still, is to break up the TBTF banks proactively, thus avoiding the bankruptcies and the need to save the banks on the backs of the people.