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?

International bankers.

… 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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