Britain’s Banking Industry To Implement Depositor Bail-in Scheme? The Confiscation of Bank Deposits

serveimage
On the first day of 2016 all banks located within the EU follow the ‘Anglosphere’ nations of Britain, America, Australia, New Zealand and Canada into an agreement, where the next bank failure and bail-in could cost depositors all their money.

Think it won’t happen. Six years after the last financial calamity caused by reckless bankers aided by negligent politicians in late 2014, one in five European banks failed basic stress tests that would see bankruptcy on the first hint of trouble. What did they need to get past that stress test? Twenty four thousand million euros.

One should not forget that the Bank of Cyprus passed its stress test with flying colours just before it crashed and burned. That bail-out and bail-in came in at €23 billion to the taxpayer but it also took 47.5% of depositors money over €100k as well.

Think it won’t happen to British Banks? This from the Financial Times:

“The Bank of England’s stress tests of the banking sector have been attacked as “fatally flawed” for setting hurdles that are too easy to clear and giving false comfort about the safety of the financial system.”

A report published by the Adam Smith Institute, a free market think-tank, calls for the BoE annual stress tests to be scrapped, arguing they are “worse than useless” because they disguise weakness in the UK banking system.

The BoE has said that banks will be required to meet a minimum 3 per cent leverage ratio to pass 2015 tests. If it had done so in 2014’s tests, half the banks would have failed: Lloyds Banking Group, Royal Bank of Scotland, the Co-op Bank and Santander UK.

An article in right-wing The Telegraph, opined – “Punishing the banking industry punishes the UK as a whole” where it postulates that in 2014 the banking industry contributed over £30bn to the treasury. What this article fails to say is that half of that tax paid was employee taxation, and only £1.6bn paid as corporation tax …. for the entire industry. Don’t forget that banks are still paying billions in fines, used to offset even more tax contributions.
Read more at globalresearch.ca

Advertisements
Published in: on January 11, 2016 at 12:46  Leave a Comment  
Tags: , ,

The URI to TrackBack this entry is: https://sooth2012.wordpress.com/2016/01/11/britains-banking-industry-to-implement-depositor-bail-in-scheme-the-confiscation-of-bank-deposits/trackback/

RSS feed for comments on this post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: