It Can Happen Here: The Confiscation Scheme Planned For U.S. And U.K. Depositors

[grahamhgreen]

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few eurozone "troika" officials scrambling to salvage their balance sheets. A joint paper by the U.S. Federal Deposit Insurance Corporation and the Bank of England dated Dec. 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.....

Can They Do That?

Although few depositors realize it, legally the bank owns the depositor's funds as soon as they are put in the bank. Our money becomes the bank's, and we become unsecured creditors holding IOUs or promises to pay (see here and here). But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into "bank equity." The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.

MORE: http://seekingalpha.com/article/1306931-it-can-happen-here-the-confiscation-scheme-planned-for-u-s-and-u-k-depositors?source=email_the_daily_dispatch&ifp=0

[kenny blankenship]

1. Theft like this has already happened to Spanish depositors, as well

In the case of Spain, the banksters tricked depositors into thinking they could convert their deposits into shares, ie. "bank equity" that were safe like deposits. This was a preemptive screwjob compared to the rule changes buried in that FDIC-Bunk'o' England memorandum.

But when TSHTF mainly in the plain in Spain, these deposits/equity were vaporized, leaving no trace that the depositors might ever glimpse again, aside from the Mercedes cars and Gulfstream jets belonging to the bankers.
http://www.nakedcapitalism.com/2012/07/eurozone-screws-spains-citizens.html

It would be foolish to think that sort of thing can't happen here. (Just count the prosecutions of our criminal bankers, if you doubt it) Converting deposits in banks into worthless stock is cut from the very same template that was used in Spain.

In country after country, and episode after episode, the politically connected financial class are proving they can rig it so that they jet away free and clear with all the loot when their pyramids of fraud and shit collapse, and it will be everyone else -depositors, workers, taxpayers, penisoners- who gets left holding the bag.

[dkf]

3. That sounds like a pure con job to me.

If you need to convince depositors to convert to equity, that should be the warning sign. I wonder what kind of disclosure these people got.

[ms.smiler]

2. Canada now has plans as well for what is called a "bail in."

See this discussion in the Economy forum: http://www.democraticunderground.com/111632967

The Canadian Budget Document:
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf#page=154

If you are a bank depositor, your hard earned money may one day be needed to recapitalize failed banks.

Sleep well.

[BeHereNow]

4. There is already a thread in GD from Dixiegrrrl on this check it out-

I just kicked it back to the top because it MATTERS.
BHN

Here you go-
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=2580104