Think Your Money is Safe in an Insured Bank Account? Think Again.


WEB OF DEBT BLOG

A trend to shift responsibility for bank losses onto blameless depositors lets banks gamble away your money.

When Dutch Finance Minister Jeroen Dijsselbloem told reporters on March 13, 2013, that the Cyprus deposit confiscation scheme would be the template for future European bank bailouts, the statement caused so much furor that he had to retract it. But the “bail in” of depositor funds is now being made official EU policy. On June 26, 2013, The New York Times reported that EU finance ministers have agreed on a plan that shifts the responsibility for bank losses from governments to bank investors, creditors and uninsured depositors.

Insured deposits (those under €100,000, or about $130,000) will allegedly be “fully protected.” But protected by whom? The national insurance funds designed to protect them are inadequate to cover another system-wide banking crisis, and the court of the European Free Trade Association ruled in the case…

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3 responses to “Think Your Money is Safe in an Insured Bank Account? Think Again.”

  1. Barneysday says :

    There have been sporadic reports by our weak-kneed press of a similar plan in the US. The big banks have conceptualized that depositors have “lent them money” and our deposit receipts are little more than an IOU. Given the shoddy performances by JP Morgan-Chase, Bank America, Wells Fargo, CitiBank, et al, I’d be running to get my money out and into a Credit Union.

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