Canada just added Cyprus haircut to their banks (ouch)

[Large Sarge]

http://www.silverdoctors.com/canada-includes-bail-in-provision-for-systemically-important-banks-in-2013-budget/

The U.S. must be next

[Libertarian_Guard]

Brilliant, liabilities become a$$ets with the stroke of a pen.

Only downside being, accountants are obsolete in this environment.

[Carl]

The U.S.A. never "guaranteed" anything over the FDIC limit so, the ability to poof out of existence anything above that limit has always been the reality here. And even with the FDIC "guarantee", there's a real good chance you won't get anything anyway.

[vacuum]

Lets make a list of all the countries doing this so far:

- Cyprus
- New Zealand
- Spain
- Italy
- Canada

[Large Sarge]

Lets make a list of all the countries doing this so far:

- Cyprus
- New Zealand
- Spain
- Italy
- Canada

also I believe Britain is on the list as well.....

and Australia has a law in place that if an account is inactive for 3 years or more, it become property of the state (think about kids college funds, or retirement accts)

[mick silver]

it maybe time to remove more paper from the bank and add more silver

[Glass]

also I believe Britain is on the list as well.....

and Australia has a law in place that if an account is inactive for 3 years or more, it become property of the state (think about kids college funds, or retirement accts)

I think paying in counts as activities. We have had capital controls down here for maybe 10 - 15 years now. It used to be $10K. Now anything $5K + requires a declaration to be completed and sent in. There are daily withdrawal limits on all accounts. Banks set their own independent limits although the Govt stipulates they must have limits. Now it ranges between $0.5K and $1.5K per day at the ATM. Between $1K and $5K per day for electronic.

[Horn]

This requires strong prudential oversight and a robust set of
options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.”

What are you complaining about LG, your Government is finally looking out for you the way you always wanted?

[Carl]

"Regulatory Capital", good one...

Anybody know what "Regulatory Capital" is?

[mick silver]

no i dont carl but tell us . i am glad to see your posting more

[Carl]

"Regulatory Capital"

All banks must meet regulatory capitalization requirements, when they fail to meet those requirements they are effectively insolvent/bankrupt. In this condition, all accounts held are a bank's liability, their debt. In other words, your bank deposits cease to exist as credit in your account and become debt on the bank's liability sheet. "Regulatory Capital" is the process of shaving a bank's debt obligations, its liabilities, until they meet capitalization requirements and are rendered solvent again, and the easiest way to do this is to shave the liabilities that were formerly known as your bank account. In the end, you're out a portion of your deposits (instead of all of your deposits) and the bank is back functing again.

There you have it; "Regulatory Capital".

Of course, you're still expected to meet all debt obligations you may have with that bank at full value...No brakes for you, get back to work!

[Libertarian_Guard]

"Regulatory Capital"

The bank has full authority to regulate (think steal) your capital.

[7th trump]

"Regulatory Capital", good one...

Anybody know what "Regulatory Capital" is?
Should we call in palani to tell us his interpretation of what regulatory capital is?

I'd love to hear is version.....or versions that is.

[Carl]

"Regulatory Capital"

The bank has full authority to regulate (think steal) your capital.
Actually, they stole your capital from day one and replaced it with credit, a promise to pay. We've been passing around bank's promises to pay for so long, we've forgotten what is supposed to be attached to them, and they like it that way.

[Libertarian_Guard]

Actually, they stole your capital from day one and replaced it with credit, a promise to pay. We've been passing around bank's promises to pay for so long, we've forgotten what is supposed to be attached to them, and they like it that way.

Do you have a degree in semantics? If not, I offer my apologies, you're good.

[chad]

Should we call in palani to tell us his interpretation of what regulatory capital is?

I'd love to hear is version.....or versions that is.

stop acting like a douche bag. not every thread has to turn in to you and palani arguing over social security cards, the constitution/scans from google's 1978 document history file, and what money, blah, blah, blah is.

yeah, i said it.

[Hatha Sunahara]

So all the sheep are going to get another haircut? TPTB are gathering wool. I wonder how long it will be before they start eating mutton?

I would bet that even the most heavily armed sheep in America will tolerate a haircut as well.


Hatha