{"id":16063,"date":"2016-01-05T20:37:24","date_gmt":"2016-01-06T01:37:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16063"},"modified":"2016-01-05T20:37:48","modified_gmt":"2016-01-06T01:37:48","slug":"brave-new-world-of-bank-bail-ins-as-of-january-1st","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16063","title":{"rendered":"Brave New World of Bank Bail-Ins As Of January 1st"},"content":{"rendered":"

Brave New World of Bank Bail-Ins As Of January 1st<\/a><\/h3>\n
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On January 1st, 2016, the new bail-in regime\u00a0became law putting at risk the deposits of savers and companies in the EU.<\/div>\n
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EU countries join the UK, the U.S., Canada, Australia and New Zealand in having plans for bail-ins in the event of banks and other large financial institutions getting into difficulty. It is now the case that in the event of bank failure, personal and\u00a0corporate deposits could be confiscated<\/a>.<\/p>\n

The bail-in architecture was seen in the Cyprus bank bail-ins that were seen in 2003. Then, deposits of over \u20ac100,000 were confiscated in \u201chaircuts\u201d in order to bail out banks in Cyprus.\u00a0 Now the exact same principles that were used in Cyprus \u2013 which we were told was unique and a one off \u2013 are going to apply to all of Europe.<\/p>\n

Bail-ins and the risks they pose have largely been ignored in most of the media. In one of the very few articles on bail-ins in recent days, Hugh Dixon of Reuters Breaking Views has looked at bail-ins but has focused on the \u201cpolitical risks\u201d rather than that posed to savers and indeed company depositors:<\/p>\n

The European Union entered a brave new world of bank \u201cbail-ins\u201d at the start of 2016. Europe has wasted so much taxpayers\u2019 money on bailing out bust banks in recent years that it is right to try to get investors to help foot the bills in future. However, the tough new regime carries big political risks.<\/em><\/p><\/blockquote>\n

\"bail-ins-considerations\"<\/a><\/p>\n

The\u00a0article,\u00a0\u2018EU enters brave new world of bank bail-ins\u2019<\/em>, is interesting despite ignoring the financial and economic risk of bail-ins \u2013 \u00a0they would likely be very deflationary in a world already beset by deflation \u2013 and can be accessed\u00a0here<\/a>
\nDownload Our\u00a0Must Read\u00a0Bail-In Guides<\/span>\u00a0Here:<\/p>\n

Protecting Your Savings In The Coming Bail-In Era<\/a><\/p>\n

From Bail-Outs To Bail-Ins: Risks and Ramifications<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Brave New World of Bank Bail-Ins As Of January 1st On January 1st, 2016, the new bail-in regime\u00a0became law putting at risk the deposits of savers and companies in the EU. EU countries join the UK, the U.S., Canada, Australia and New Zealand in having plans for bail-ins in the event of banks and other […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[41,46,11289,63,103,2016,281,8689,11511,4002,820,834],"class_list":["post-16063","post","type-post","status-publish","format-standard","hentry","category-economics","tag-australia","tag-bail-in","tag-bank-bail-in","tag-banks","tag-canada","tag-cyprus","tag-europe","tag-goldcore-com","tag-mark-obyrne","tag-new-zealand","tag-uk","tag-us"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16063"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16063\/revisions"}],"predecessor-version":[{"id":16065,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16063\/revisions\/16065"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}