Bank Deposits Can Be Used To Bail Out Canadian Banks! Yes, ’It Can Happen Here’.
31 March 2013
(CRC)—When the president of the so-called Eurogroup, the Netherlands Finance Minister Jeroen Dijsselbloem let the cat out of the bag in terms of bankers future plans following the theft of Cypriots bank deposits, all hell broke loose in Europe as the financial press headlined that the seizing of bank deposits of Cypriots would become a “template for other European Union countries”.
What Dijsselbloem had said in that recent Reuters interview was not an opinion, a mistake or a misquote. All bank deposits worldwide, not just in Europe, are now at risk as per the policy directives issued by the Basel-based Financial Stability Board (FSB) to the G20 countries in October 2011.The 45 pages FSB guidelines entitled “ Key Attributes of Effective Resolution Regimes for Financial Institutions dealt with the risks associated with "systemically important financial institutions" (SIFI). A more recent, December 10, 2012, joint paper by the US Federal Deposit Insurance Corporation (FDIC) and the Bank of England (BOE) called “ Resolving Globally Active, Systemically Important, Financial Institutions ” goes back to the period of the passage of the Dodd-Frank Act in June 2010. "The Dodd-Frank Title II, Orderly Liquidation Authority, and those who voted for it were voting to trash the principles of Glass-Steagall organization and regulation of commercial banking."
Is it any surprise that Canada has already put into law the FSB directive? Not if you consider that Mark Carney, who was appointed November 4, 2011 president of the Financial Stability Board at the Bank for International Settlement (BIS) is the “enforcer” of the policy. Carney came in just a few days after the FSB guidelines were announced in October 2011 under the watch of Mario Draghi who, like Carney, is a former executive at Goldman Sachs. In the meanwhile, Minister of Finance Jim Flaherty has included in his recent budget Economic Action Plan 2013, on pages 144-145, directives to implement a “bail-in regime” for systemically important banks in Canada:
Glass-Steagall or Die
Only a global Glass-Steagall system can prevent the genocide levels of austerity presently in the implementation stage and bring about a more just new worldwide credit system capable of issuing large amounts of productive public credit for world reconstruction. [GG]