European Union Plans to Repeat Cyprus Plan: Take Depositors Money

posted by Jael Ever @ 19:51 PM
July 11, 2013

hands-off-cyprus        Economists agree:  European Union’s (EU) banking system is in dire straits.  In anticipation of failing banks, EU finance ministers stealthily plan to following what they did in Cyprus––confiscate bank deposits over 100,000 euros ($129,000).

The Guardian wrote on May 14, 2013:  “Depositors with less than €100,000 in a bank that is being closed down will get all their money back, EU finance ministers agreed on Tuesday, and most supported the idea that bigger depositors would get privileged status.”  That language ‘privileged’ leaves obvious questions.

Some banking commissioners indicate the issue is not fully settled, but Tom Fairless of the Wall Street Journal writes:  “German Finance Minister Wolfgang Schäuble, along with his Dutch and Danish counterparts, backed a tough approach in which uninsured depositors would contribute on the same level as senior bondholders when problems arose.”

Fairless further quotes Germany’s Finance Minister:  “Mr. Schäuble did signal a willingness to compromise. He said uninsured depositors could be given preference, but certainly shouldn’t be excluded from taking losses.”  Fairless then quotes Schäuble:”It’s a matter of when, not a matter of whether” uninsured depositors should take losses, he said.  Germany and northern European countries seem intent on the right to take depositors funds as they will.

Michael Snyder argues in ‘New EU Plan Will Make Every Bank Account In Europe Vulnerable To Cyprus-Style Wealth Confiscation’:  “Did you actually believe that they were not going to use the precedent that they set in Cyprus? bank-fraud

“On Thursday, EU finance ministers agreed to a shocking new plan that will make every bank account in Europe vulnerable to Cyprus-style bail-ins.  In other words, the wealth confiscation that we just witnessed in Cyprus will now be used as a template for future bank failures all over Europe. That means that if you have a bank account in Europe, you could wake up some morning and every penny in that account over 100,000 euros could be gone.”

Because EU countries have different rules, European Central Bank commissioner Jörg Asmussen repeatedly argues:  “We want a single European resolution regime, together with a single resolution agency and a single resolution fund that is financed by a levy from the banking industry.”

But Mr. Schäuble strongly disagrees:  “Current treaties don’t give enough foundation for a European restructuring authority.”  In other words, Germany wants new “treaties” giving it authority over EU citizens and their finances.

This is an economic war!  Non-German EU countries are losing that war.  Hitler’s nation wants most EU members to be in the same position as Israel when Jeremiah cried in wholesale Christian Bibles:  “We have drunken our water for money; our wood is sold unto us (Lamentations 5: 4).”  To that extend Germany will own all assets of other EU nations and then charge them for their use.

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