Jim Flaherty’s Cyprus-style bank rescue plan: Walkom
Thomas Walkom | www.thestar.com | April 4, 2013
… Ottawa is preparing a new set of what it called bail-in rules that it could impose should one of the country’s big banks face collapse.
… would allow federal regulators to seize unspecified bank liabilities — including, perhaps, the savings of uninsured depositors — and use them to prop up a faltering institution.
… exactly what Cyprus’ government did to deal with its banking crisis. …
… The budget says Flaherty will follow the recommendations set out in a 2011 report by the Financial Stability Board, a new international body headed by Bank of Canada Governor Mark Carney.
And those recommendations are blunt. Insured deposits would be protected. But uninsured deposits, including savings over the $100,000 limit and mutual funds, would be fair game. …
If $100,000 theft is okay – it’s not – then what’s to stop them taking smaller amounts?
How are conservatives handling this? Spinning? Just reflexively defending whatever the government does?
Where did this outrageous policy come from?
… Flaherty will follow the recommendations set out in a 2011 report by the Financial Stability Board, a new international body…
Where do all the other policies come from?
Related, more info:
- Appears to be provision for Cyprus style “bail-ins” in the Canadian federal budget
- Another writer interprets Canadian federal budget “bail-in” as allowing for Cyprus-style confiscation of bank deposits
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