I've been talking about the risks of being exposed to the banking system for many years now. A lot of people have been saying that I am a fear monger, but since I started talking Bail In right after 2013 Cyprus Bail-In, there have been several other Bail-Ins. The G20 working group that works for hand in hand with the FSB not the Russian CIA, but the Financial Stability Board with the head Mark Carney the Carney man that he is.
There has been Bailins in Austria, Germany, Spain, Italy and Portugal. https://quifinanza.it/soldi/fallimento-banche-in-austria-il-primo-caso-di-bail-in-europeo/62945/ These Bail-ins didn't necessarily hit the depositors, but it hit the senior bondholders of those banks that lost mostly all of their money. http://icebergfinanza.finanza.com/2015/03/05/austria-hypo-alpe-adria-bank-bail-in-good-news/ Meanwhile, the banks were bought up for nothing by their competitors further centralizing banking power. https://uk.reuters.com/article/uk-italy-veneto-banks/italy-rules-out-bail-in-for-investors-in-veneto-banks-rescue-idUKKBN18L16N An example was the Bailin on Spanish Banko Popular that did a bondholder recapitalization and was sold to Banco Santander for €1. https://seekingalpha.com/article/4079869-banco-popular-espanol-europes-first-bail-in-test
Since the G20 put together the framework for the bail-in regime or bank recapitalization as it is also called many countries has specific legislation talking about the implementation of Bailins. Canada was the first country in 2013 to implement a Bailin strategy. Since the 2013 budget, they have renewed the legislation all the way to the 2017 budget. Under I have added info about the Bailin legislations in countries around the world. Bailins is seen as a new idea, but a book I read back in 2016, I found the Bailin legislation being mentioned as a possible implementation policy for the future. The book is from 1998. That tells us the banksters have been working on these forever.
https://academic.oup.com/jfr/article/1/1/3/2357875
https://cepr.org/sites/default/files/news/GenevaSpecialReport4.pdf
https://cba.ca/faq-what-is-a-bail-in-regime
https://www.aph.gov.au/DocumentStore.ashx?id=657b5e40-1458-49fa-b8c6-939d47b95629&subId=562244
https://www.newyorkfed.org/medialibrary/media/research/epr/2014/1412somm.pdf
Bailins sounds great as it looks like it'll hurt the bank's shareholders aka. Bondholders, but it also talks about utilizing bank liabilities as well. Just to mention a bank liability is a deposit account you have with them. As soon as you put your money into your electronic bank account, the money is not yours anymore it is the banks! Banks use your deposited money to invest then and borrow to others through fractional reserve lending. Before there used to be savings and loans banks like the ones portrayed in the movie Its A Wonderful Life and then there were the Investment banks where you knew you took the risk giving your money to the banksters.
Today the two types of banks have combined you have a bank that does savings, loans and investment banking, but without 95% of the populace knowing that your deposits are being used to buy speculative Credit Default Swap bets by the banksters.
In 2008 the banks had a very elaborate scheme. They took mortgages that they had on their books. They bundled the mortgages into a Special Purpose Entity/Vehicle to take the risk off their books. They put multiple SPE's and SPV's together in what is called a Mortgage Backed Security. Then these MBS's were bundled in different tranches within what is called a Collateralized Debt Obligation. After that they got rating agencies like S&P and Moody's to rate the investment to AAA or Aaa which is Prime investment grade that lets pension funds invest in them.
After they had created this elaborate scheme, they used yet another derivative a Credit Default Swap designed by none other than the worlds most corrupt female banker who ranks with Dimon and Blankfein. Her name is Blythe Masters. What she did to keep the derivative from being regulated under insurance was to call it Credit Default Swap and not Credit Default Insurance which it is. These CDS allowed 100's of investors to insure the same asset. Think about it this way. It would be like 100 people were allowed to protect your house and as it burned down the 100 people including you would get the insurance payout. This sounds wild, but that is precisely the scheme that Masters created.
To show you how the Banksters went the step further with this derivative they used the CDS to bet against their CDO's investments they sold to pension funds which thought they had bought a Prime rated investment, not a Junk investment that these CDO's should have been rated. The next thing that happened was that the debt(mortgages) that was the underlying "asset" of the derivative SPE/V or the CDO collapsed as the people who were lent money could not pay their debt and they went into foreclosure. That caused the debt in the CDO's tranches to default and drained up the Return on Investment, and eventually, there was no more money left, and the derivatives became worthless.
The banks had now bet against this with their CDS instruments on the AIG derivatives platform, and AIG was now on the hook for billions of dollars in CDS payouts to the banksters who created the problem in the first place.
This greed ended up in the failure of Bear Sterns and Lehman Brothers. Many other banks were in delinquency as well. What the US Treasury and the FED decided to do next was a "rescue operation" of historical scale. As banks in the US were on the verge of collapse the meltdown of these derivatives spread around the world as fools all over the world held these bad investments. AIG got bankrupted from the CDS as 1000's of banksters used the CDS instruments to bet against the very investments they sold. Hank Poulson former Goldman Sachs helped sell the Timberwolf CDO's to Russian funds all the way till when the system came down, and he became the treasury secretary of the US government where he used mob tactics to threaten the government saying the world would end if they didn't bail out the big banks.
What came next was an epic bailout of banks all around the world. Banks in Europe, Asia and Canada were bailed out through the secretive TARP fund the Troubled Asset Relief Program. 1000's of banks should have collapsed together with a monetary fiat currency collapse, but this never happened. Banks continued their malpractices. Instead of lowering risks there are now on the high end as much as $1.2 Quadrillion in derivatives worldwide. Banks are more reckless than ever having the Central Banksters which they many times own bailing them out through their Quantitative Easing programs buying up lousy debt putting it on their books and leaving the banks with fresh cash to create more terrible derivatives.
Today banks have invented many more derivatives. Collateralized Loan Obligations that is corporate debt. Auto Backed Securities which is car loans packaged the same way as the CDO. They have just used different debt to create the same damaging products they had before. But now they are getting a global bailout from the central banks. The banking system is insolvent and you being stuck in a bank account is very risky! This is, of course, my opinion as I am not a "licenced" Financial Advisor, but I bet you your Financial advisor have no clue about most of the above structure as they only get taught to be salespeople for the prominent organizations.
This brings me back to the Bailin regime. Remember what happened in Cyprus in 2013? Here is an excerpt of what happened in Cyprus.
Memorandum of Understanding
On 16 March 2013, the Eurogroup, European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) agreed on a €10 billion deal with Cyprus,[11] making it the fifth country—after Greece, Ireland, Portugal and Spain—to receive money from the EU-IMF. As part of the deal, a one-off bank deposit levy of 6.7% for deposits up to €100,000 and 9.9% for higher deposits, was announced on all domestic bank accounts. Savers were due to be compensated with shares in their banks. Measures were put in place to prevent withdrawal or transfer of moneys representing the prescribed levy.
The levy was what other countries call recapitalization or bail-in of depositors money they thought was insured. As you can see above. The banks Larnaka bank and Cyprus Bank took 6.7% of depositors money that had bank accounts under €100k Euro. This should come to a shocker to people who think their deposits under $100k is insured or whatever in other currencies local banks supposedly have guaranteed. This brings us to Deposit insurance!
Deposit insurance is what banks and credit unions claim to have to protect depositors under $100k from losing their money. The problem is that the so-called deposit insurance funds have little to nothing to protect depositors from bank default. Especially big national banks. In Canada the numbers are bleak. The CDIC Canada Deposit and Insurance Corporation holds only 0.39% of the money needed to insure deposits under $100k. We are living in ignorance believing that the Ponzi scheming banksters have our best interest in the place. They couldn't care less about you. They just want your money, and other institutions in other countries similar to the Canadian like CDIC and the FDIC in the US have similar amounts of money.
That is why they have created the bail-in regime legislations worldwide. They know their insurance funds don't protect depositors. If you lose your deposit fraudulently, you are not covered by the CDIC as it says on their webpage.
The banks are waiting to bail-in bank accounts in the next crisis. We will see you assets frozen over a bank holiday. Most likely to happen on a Friday. Then banks might or might not reopen again, but with most, if not all of your money is gone. If you had a lot of money in your bank account, you might find yourself restricted to only get maybe $60 a day out of the ATM's. That is the reason why more and more rich people store physical cash in vaults around the world together with their precious metal investment.
This time around it might not only be the banks, the insurance giants getting stricken. From a dinner, James Rickards had with CEO of Blackrock he found that they had met with regulators to plan an asset freeze of their $220B+ asset holdings. And lately, he is pushing that people should get back into stock markets as they need more money income. He says in the interview in the article that people are afraid and they have all the rights as he wants to exit from investments, and you need buyers. Diversification real diversification can get you away from risks from banks, investment funds and others.
Lesson learned should try to mitigate your exposure to bail-ins and to come asset freezes coming in the next economic crash!
You need to protect your wealth, and I highly suggest you read one of my latest articles on how real diversification of money works. Not the diversification banksters like Larry Fink and others tell you!
https://steemit.com/money/@theeconomictruth/diversification-the-king-of-all-investment-strategies
Peace, Love, Voluntarism!
John