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joe_momma
29th November 2010, 09:57 AM
(Zerohedge is one of the better economic blogs)

Following Hungary And Ireland, France Is Next To Seize Pension Funds


If the recent Hungarian "appropriation" of pension funds, and today's laughable Irish bailout courtesy of domestic pension funds sourcing 20% of the "new" money was not enough to convince the world just how bankrupt the entire European experiment has become, enter France. Financial News explains how France has "seized" €36 billion worth of pension assets:

"Asset managers will have the chance to get billions of euros in mandates in the next few months for the €36bn Fonds de Réserve pour les Retraites (FRR), the French reserve pension fund, after the French parliament last week passed a law to use its assets to pay off the debts of France’s welfare system. The assets have been transferred into the state’s social debt sinking fund Cades. The FRR will continue to control the assets, but as a third-party manager on behalf of Cades." FN condemns the action as follows: "The move reflects a willingness by governments to use long-term assets to fill short-term deficits, including Ireland’s announcement last week that it would use the country’s €24bn National Pensions Reserve Fund “to support the exchequer’s funding programme” and Hungary’s bid to claw $15bn of private pension funds back to the state system."

In other words, with the ECB still unwilling to go into full fiat printing overdrive mode, insolvent governments, France most certainly included, are resorting to whatever piggybanks they can find. Hopefully this is not a harbinger of what Tim Geithner plans to do with the trillions in various 401(k) funds on this side of the Atlantic.

http://www.zerohedge.com/article/following-hungary-and-ireland-france-next-seize-pension-funds

Hatha Sunahara
15th December 2010, 01:28 PM
Its time for Americans to cash out their IRAs, 401Ks and tax deferred pension plans. We're next. TPTB want to rob us of our retirement security before they make the money worthless. All those retirement funds they are seizing are going to the banksters to fatten them up.

Hatha

Dogman
15th December 2010, 01:51 PM
(Zerohedge is one of the better economic blogs)

Following Hungary And Ireland, France Is Next To Seize Pension Funds


If the recent Hungarian "appropriation" of pension funds, and today's laughable Irish bailout courtesy of domestic pension funds sourcing 20% of the "new" money was not enough to convince the world just how bankrupt the entire European experiment has become, enter France. Financial News explains how France has "seized" €36 billion worth of pension assets:

"Asset managers will have the chance to get billions of euros in mandates in the next few months for the €36bn Fonds de Réserve pour les Retraites (FRR), the French reserve pension fund, after the French parliament last week passed a law to use its assets to pay off the debts of France’s welfare system. The assets have been transferred into the state’s social debt sinking fund Cades. The FRR will continue to control the assets, but as a third-party manager on behalf of Cades." FN condemns the action as follows: "The move reflects a willingness by governments to use long-term assets to fill short-term deficits, including Ireland’s announcement last week that it would use the country’s €24bn National Pensions Reserve Fund “to support the exchequer’s funding programme” and Hungary’s bid to claw $15bn of private pension funds back to the state system."

In other words, with the ECB still unwilling to go into full fiat printing overdrive mode, insolvent governments, France most certainly included, are resorting to whatever piggybanks they can find. Hopefully this is not a harbinger of what Tim Geithner plans to do with the trillions in various 401(k) funds on this side of the Atlantic.

http://www.zerohedge.com/article/following-hungary-and-ireland-france-next-seize-pension-funds


If they did try it would be interesting to say the least on how they would try to do it. Make law that first locks the fund so one can not close or withdraw from them? Or out of the blue, freeze everything and say sorry about that! I suspect if there is a hint that the gov was planning to do such a thing, the rats would leave the ship, well before there was proof the ship was sinking.

It makes a nice thought "What If" thingy..

undgrd
15th December 2010, 05:46 PM
Why would the super rich care if the peasants lose their 401k's? Do you believe the super rich even HAVE 401k's?

Glass
15th December 2010, 09:39 PM
They are going to transfer them and issue guaranteed annuities.


The Obama administration is weighing how the government can encourage workers to turn their savings into guaranteed income streams following a collapse in retiree accounts when the stock market plunged.

Link (http://curtislowe.wordpress.com/2010/01/11/when-you-hear-obama-start-talking-about-retirement-annuities)

Then they will trash the value of the money they pay you but the actual $ amount won't adjust for this so you will go backwards.

and another one:


The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.
Business week (http://www.businessweek.com/investor/content/jan2010/pi2010018_130737.htm)

In Australia there is a constitutional court case underway where a businessman is arguing that there are no consitutional grounds for the Fed Govt to force someone to spend their money in a particular way i.e. put min 9% in to a retirement plan or superannuation plan as we call them down here. See where is says Annuation plan? Meaning it is already an annuity.