New Bank Bailout Plan: Depositors Pay

Bank of America deposit slip

Will your deposits be safe? How solvent is your bank? Are they derivatives players?

New Bailout Plan: Depositors Pay

The European Finance Ministers have now set the precedent that when banks go broke and need a bank bailout, then  the depositors are the funding source.

What’s wrong with this picture?  When corporations go insolvent it is supposed to be their shareholders lose, not their customers.

Michael Snyder’s analysis of the ongoing fallout of the Cyprus levy tax on deposit holders is one that I will be following in my research. –No Name Attorney

Michael has a B.S. in Commerce from the University of Virginia, a law degree (J.D.) and a Masters of Law in Taxation (LL.M.) from the University of Florida School of Law.

The Global Elite Are Very Clearly Telling Us That They Plan To Raid Our Bank Accounts

By Michael, on March 27th, 2013

Don’t be surprised when the global elite confiscate money from your bank account one day. They are already very clearly telling you that they are going to do it. Dutch Finance Minister Jeroen Dijsselbloem is the president of the Eurogroup – an organization of eurozone finance ministers that was instrumental in putting together the Cyprus “deal” – and he has said publicly that what has just happened in Cyprus will serve as a blueprint for future bank bailouts. What that means is that when the chips are down, they are going to come after YOUR money. So why should anyone put a large amount of money in the bank at this point? Perhaps you can make one or two percent on your money if you shop around for a really good deal, but there is also a chance that 40 percent (or more) of your money will be confiscated if the bank fails. And considering the fact that there are vast numbers of banks all over the United States and Europe that are teetering on the verge of insolvency, why would anyone want to take such a risk? What the global elite have done is that they have messed around with the fundamental trust that people have in the banking system. In order for any financial system to work, people must have faith in the safety and security of that financial system. People put their money in the bank because they think that it will be safe there. If you take away that feeling of safety, you jeopardize the entire system.

So exactly how did the big banks in Cyprus get into so much trouble? Well, they have been doing exactly what hundreds of other large banks all over the U.S. and Europe have been doing. They have been gambling with our money. In particular, the big banks in Cyprus made huge bets on Greek sovereign debt which ended up failing.

But what happened in Cyprus is just the tip of the iceberg. All over the planet major financial institutions are being incredibly reckless with client money. They are leveraged to the hilt and they have transformed the global financial system into a gigantic casino.

If they win on their bets, they become fabulously wealthy.

If they lose on their bets, they know that the politicians won’t let the banks fail. They know that they will get bailed out one way or another.

And who pays?

We do.

Either our tax dollars are used to fund a government-sponsored bailout, or as we have just witnessed in Cyprus, money is directly confiscated from our bank accounts.

And then the game begins again.

People need to understand that the precedent that has just been set in Cyprus is a game changer.

The next time that a major bank fails in Greece or Italy or Spain (or in the United States for that matter), the precedent that has been set in Cyprus will be looked to as a “template” for how to handle the situation.

Eurogroup president Jeroen Dijsselbloem has even publicly admitted that what just happened in Cyprus will serve as a model for future bank bailouts. Just check out what he said a few days ago

“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’. If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders”

Dijsselbloem insists that this will cause people “to think about the risks” before they put their money somewhere…

“It will force all financial institutions, as well as investors, to think about the risks they are taking on because they will now have to realise that it may also hurt them. The risks might come towards them.”

Well, as depositors in Cyprus just found out, there is a risk that you could lose 40 percent (and that is the best case scenario) of your money if you put it in the bank.

Read More Here….

 

Destructive and Crazy Says Steve Forbes About Cyprus Bank Levy

Destructive and Crazy Says Steve Forbes About Cyprus Bank Levy

I am not a Steve Forbes fan.  Nevertheless, I try to be objective and give credit where it is due.  The Cyprus Bank Levy was an insane idea by the EU, Merkel, banksters or whoever was behind it.

The public is already on edge about the economy.  There are governmental actions taking place that despite all the alternative reasons being given by government spokesmen, could be arguable that preparation is occurring for a possible economic meltdown: Excessive government purchase of  hollowed point bullets with enough of them to shoot every citizen several times, NDAA, buying large stockpiles of freeze dried foods, Bernake’s open spigot quantitative easing, jumping on the unfortunate Sandy Hook situation and going on a massive offensive to take as many guns as they can out of citizens’ hands, etc.

So people are already nervous.  And whether the banking and financial industry likes it or not, the public’s trust of them continues southward.  Most Americans are bitter, upset or dismayed about the 2008 Wall Street bailout to pay for the wrongful or negligent conduct of others in which we had no role.

Europeans are saying similar things about their government and the European Economic Community.

So why in the world would you fast and quietly try to impose up to a 10% levy on the public’s private bank accounts?  They’re already suffering for the sins of another, the banking, financial and government conduct. 

Bernake and co-horts can tell you that nothing like this can happen with our financial system.  They tout that since instituting the FDIC insurance no one has lost any money.

One of the problems that they have with this argument is that we are in uncharted territory.  What went on in the past is not parallel today to the unethical derivatives, credit default swaps and liar loans.  The amount of world debt was not the astronomical level it is today to the worlds’s GDP.  Then we were not as integrated in the “world economy” as we are now with the decades of pushing towards globalism. 

Moreover, think what happened to the MF Global customers.  Jon Corzine and minions took MF Global depositors’ monies out of their accounts and gave it to JP Morgan.  These customers were supposedly insured by the CFTC.  However, the CFTC has failed to make good on the situation and customers had to hire attorneys to go to bankruptcy court.  Even though their money was stolen from their accounts, they will be lucky if they get 25 cents on the dollar.  (I hope I am wrong on this as what was done to them was so outrageous!)  Their monies have not been returned or reimbursed in full.

Then there was the “glitch” that JP Morgan had this week that zeroed out their customer accounts for about two hours.  It shows us how vulnerable we all are in this electronic banking age.

Which situation do you think more relevant to the times? Do you have an apple being compared to an orange?

If you need to keep your monies at a banking institution, do you think it would be safer to have those accounts at more local banks (who did not get bailed out, engage in irresponsible derivatives, credit default swaps) or credit unions than to keep in those “too big to fail” banks that are one of the primary causes of the 2008 financial meltdown?

So share your thoughts below…Do you think that in our future is a Cyprus Bank “Levy” or wealth tax moment?

Think about it!—No Name Attorney

Steve Forbes: Cyprus Bank Levy Is ‘Crazy’ and ‘Destructive’

Wednesday, 20 Mar 2013 07:58 AM

By Michelle Smith of Moneynews.com

Imposing a levy on bank deposits as a condition for a bailout is “crazy” and “destructive,” writes Steve Forbes, chairman and editor-in-chief of Forbes Media, warning that this idea could be disastrous for everyone.

Cyprus is seeking 10 billion euros ($12.9 billions) for fiscal needs, bank restructuring and to provide support for the nation’s economy, according to a statement from the Cypriot finance ministry.

The nation actually needs a bailout of 17 billion euros CNN says the Financial Times revealed. But a group of potential creditor nations have proposed a one-time levy on bank deposits to reduce the nation’s need for outside funding.

Essentially what was proposed was to take a certain percentage of money from the accounts of people who have made deposits in good faith, a move that many have likened to stealing.

Forbes noted that the seizing of peoples’ bank deposits is the kind of thing one would expect from “Argentina or other kleptocractic third-world governments.”

The germane fact is that it was Western Europe, supposedly a strong believer in the rule of law, that engaged in this Hugo Chavez-like move, he writes.

Forbes warns that having such an idea come from Europe is disastrous in part because it affects the thoughts of people elsewhere. If Europeans leaders could come up with such an idea, an American leader, such as President Barack Obama, could propose a measure such as raiding 401(k)s to help fund Social Security, says Forbes. And in a panic Congress could jump on board.

Furthermore, Forbes says this bank levy business guarantees that there will be disastrous runs on banks and money market funds when we have another financial crisis. And he is sure that another crisis lies ahead because authorities really don’t know what they are doing on the economic front, he added.

Don’t think the US would be immune in a crisis, Forbes said. When fears rise, people clutch cash first as trust and faith in authority melts away.

Read More Here…

The Stealing By Banksters Must Stop

The Stealing By Banksters Must Stop

I hate to admit but I think Michael is right.  Cyprus just might be a test case to see how the public will react to the banksters (with government assistance) doing a shakedown of the public for their misconduct.

Bank holidays are coming to America at some point.  It has happened before during the 1930’s.  It can happen again.  This time we could have our own version of a “wealth tax”.

Nevertheless, please explain to me how it is just to have a third party pay for the crimes of another?  Why should we be paying for the derivatives, liar loans, credit default swaps of these mega financial institutions?

Why isn’t the government putting these mega financial institutions into receivership, bankruptcy or trying to liquidate them?  Would we be better off if the government temporarily seized them and brought in a new crowd of “experts” to start afresh?  If there was a stockbroker or investment firm committing fraud on its customers, the SEC would not waste any time getting an injunction and taking the business over. 

This malfeasance or misconduct will continue as long as the public allows it.  If we want to stop it we need to stop playing their game.  Did your bank gamble with derivatives?  Did they have liar loans?  Or were they engaged in credit default swaps?  If you don’t know, then you need to do your homework and find out.

There’s a legal concept called ratification.  Check it out.  Ask yourself:

  • Does my bank receive funds from the Federal Reserve based upon their customers deposits and savings? 
  • Do they use my money to get money from the Federal Reserve under our fractional banking system? 
  • If so, then why am I indirectly endorsing or ratifying their conduct by keeping your financial assets there? 
  • Shouldn’t I find a bank that did not have any connection to the 2008 financial fiasco or “mismanagement”?

There are credit unions and banks that have “clean hands” about the 2008 Wall Street mess.  Why don’t you find them and support their business ethics by removing your checking and savings accounts from those who have “dirty hands”?  If we vote with our dollars those who acted inappropriately will feel the pinch and hear our voices.

Think about it!–No Name Attorney

P.S.  This is part of Michael’s series of covering the Bankster heist from bank accounts.  Michael has a B.S. in Commerce from the University of Virginia, a law degree (J.D.) and a Masters of Law in Taxation (LL.M.) from the University of Florida School of Law.  He has agreed to contribute his work to this website.  Michael’s research probes and sharpens one’s analysis (iron sharpens iron).

After The Banksters Steal Money From Bank Accounts In Cyprus They Will Start Doing It EVERYWHERE

By Michael, on March 17th, 2013

If The Banksters Will Steal Money From Bank Accounts In Cyprus Then They Will Do It ANYWHERE

Image from www.economiccollapseblog.com. Do you think that this is an accurate photo as to what is happening to bank customers because of the bankers’ misconduct?

Cyprus is a beta test.  The banksters are trying to commit bank robbery in broad daylight, and they are eager to see if the rest of the world will let them get away with it.  Cyprus was probably chosen because it is very small (therefore nobody will care too much about it) and because there is a lot of foreign (i.e. Russian) money parked there.  The IMF and the EU could have easily bailed out Cyprus without any trouble whatsoever, but they purposely decided not to do that.  Instead, they decided that this would be a great time to test the idea of a “wealth tax”.  The government of Cyprus was given two options by the IMF and the EU – either they could confiscate money from private bank accounts or they could leave the eurozone.  Apparently this was presented as a “take it or leave it” proposition, and many are using the world “blackmail” to describe what has happened.  Sadly, this decision is going to set a very ominous precedent for the future and it is going to have ripple effects far beyond Cyprus.  After the banksters steal money from bank accounts in Cyprus they will start doing it everywhere.  If this “bank robbery” goes well, it will only be a matter of time before depositors in nations such as Greece, Italy, Spain and Portugal are asked to take “haircuts” as well.  And what will happen one day when the U.S. financial system collapses?  Will U.S. bank accounts also be hit with a “one time” wealth tax?  That is very frightening to think about.

Cyprus is a very small nation, so it is not the amount of money involved that is such a big deal.  Rather, the reason why this is all so troubling is that this “wealth tax” is shattering confidence in the European banking system.  Never before have the banksters come directly after bank accounts.

If everything goes according to plan, every bank account in Cyprus will be hit with a “one time fee” this week.  Accounts with less than 100,000 euros will be hit with a 6.75% tax, and accounts with more than 100,000 euros will be hit with a 9.9% tax.

How would you feel if something like this happened where you live?

How would you feel if the banksters suddenly demanded that you hand over 10 percent of all the money that you had in the bank?

And why would anyone want to still put money into the bank in nations such as Greece, Italy, Spain or Portugal after all of this?

One writer for Forbes has called this “probably the single most inexplicably irresponsible decision in banking supervision in the advanced world since the 1930s.”  And I would agree with that statement.  I certainly did not expect to see anything like this in Europe.  This is going to cause people to pull money out of banks all over the continent.  If I was living in Europe (and especially if I was living in one of the more financially-troubled countries) that is exactly what I would be doing.

The bank runs that we witnessed in Cyprus over the weekend may just be a preview of what is coming.  When this “wealth tax” was announced, it triggered a run on the ATMs and many of them ran out of cash very rapidly.  A bank holiday was declared for Monday, and all electronic transfers of money were banned.

Read More Here…