Confiscation of Savings in Canada - Cyprus-Style “Bail-Ins” Proposed by Government
The politicians of the western world are coming after your bank accounts. In fact, Cyprus-style “bail-ins” are actually proposed in the new Canadian government budget. When I first heard about this I was quite skeptical, so I went and looked it up for myself. And guess what? It is right there in black and white on pages 144 and 145 of “Economic Action Plan 2013″ which the Harper government has already submitted to the House of Commons.This new budget actually proposes "to implement a ‘bail-in' regime for systemically important banks" in Canada. "Economic Action Plan 2013″ was submitted on March 21st, which means that this "bail-in regime" was likely being planned long before the crisis in Cyprus ever erupted. So exactly what in the world is going on here? In addition, as you will see below, it is being reported that the European Parliament will soon be voting on a law which would require that large banks be "bailed in" when they fail. In other words, that new law would make Cyprus-style bank account confiscation the law of the land for the entire EU. I can't even begin to describe how serious all of this is. From now on, when major banks fail they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the western world.
Canada Economic Action Plan 2013 - Full PDF: pages 144 and 145
Establishing a Risk Management Framework for Domestic
Systemically Important Banks
Economic Action Plan 2013 will implement a comprehensive risk management
framework for Canada’s systemically important banks.
Canada’s large banks are a source of strength for the Canadian economy.
Our large banks have become increasingly successful in international
markets, creating jobs at home.
The Government also recognizes the need to manage the risks associated
with systemically important banks—those banks whose distress or failure
could cause a disruption to the financial system and, in turn, negative impacts
on the economy. 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.
The Government intends to implement a comprehensive risk management
framework for Canada’s systemically important banks. This framework will
be consistent with reforms in other countries and key international standards,
such as the Financial Stability Board’s Key Attributes of Effective Resolution
Regimes for Financial Institutions, and will work alongside the existing Canadian
regulatory capital regime. The risk management framework will include the
Systemically important banks will face a higher capital requirement,
as determined by the Superintendent of Financial Institutions. Supporting Jobs and Growth
Helping Manufacturers and Businesses Succeed in the Global Economy
E C O N O M I C A C T I O N P L A N 2013 145
The Government proposes to implement a ―bail-in‖ regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its
capital, the bank can be recapitalized and returned to viability through the
very rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult
stakeholders on how best to implement a bail-in regime in Canada.
Implementation timelines will allow for a smooth transition for affected
institutions, investors and other market participants.
Systemically important banks will continue to be subject to existing risk
management requirements, including enhanced supervision and recovery
and resolution plans.
This risk management framework will limit the unfair advantage that could
be gained by Canada’s systemically important banks through the mistaken
belief by investors and other market participants that these institutions are
―too big to fail.‖
Source: Global Research