EU Completes “Single Resolution Mechanism” for Suicidal Bail-out and Bail-in of Bankrupt Banking System

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The EU reached a “final solution” to the Euro banking system bankruptcy yesterday after an all-night session. German Finance Minister Wolfgang Schaeuble was drawn into the talks around 5:30 a.m. to sign off on the deal. The Single Resolution Mechanism (SRM) will need formal approval by the European Parliament and by national governments, which they intend to accomplish by the end of the EP plenary session in Strasbourg in made-April, the last session before the European elections in May.

The Irish Times reports that the big breakthrough came when they agreed that bail-in will be applied equally — suicide in one nation will be the same as in any other nation. The SRM will have a Euro 55 billion bail-out fund, supposedly to be contributed by the banks over 8 years, but backed by governments in the meantime, to be used together with bail-in to carry out the EU’s intention of shutting down a significant number of the 120 largest banks, bail out and/or bail-in the bad debt, and absorb these failed banks into the Too Big To Fail banks. This assumes that the coming bank crisis will be relatively small and one-by-one, rather than the reality of the pending systemic collapse.

larouchepac.com

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Published in: on March 26, 2014 at 21:00  Leave a Comment  
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