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Europe Unable To Break Impasse On Who Pays When Banks Fail

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http://uk.reuters.com/article/2013/06/22/uk-eu-banking-costs-idUKBRE95L02I20130622

Europe failed to agree on how to share the cost of bank collapses on Saturday, as Germany resisted attempts by France to water down rules designed to spare taxpayers in future crises.

Almost 20 hours of talks late into the night could not forge a way for countries to set up an EU-wide regime that would first impose losses on shareholders and bondholders when a bank fails, followed by depositors with more than 100,000 euros (85,559 pounds).

Ministers will make a fresh attempt to break the impasse at a meeting on Wednesday, on the eve of an EU leaders summit, and resolve one of the most difficult questions posed by Europe's banking crisis - how to shut failed banks without sowing panic or burdening taxpayers.

"I think we can reach a deal if we take a few more days," said Michel Barnier, the European commissioner in charge of regulation. "We are not far off now from a political agreement."

Excellent deciding who pays in a capitalist system. This is the question we as taxpayers all need answering, which European taxpayer gets to pick up the tab for market failure....

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Almost 20 hours of talks late into the night could not forge a way for countries to set up an EU-wide regime that would first impose losses on shareholders and bondholders when a bank fails, followed by depositors with more than 100,000 euros (85,559 pounds).

Innovative.

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Well we know from Cyprus the EU/ECB come first in getting their money back. So it wont be them...

Unlike the UK where it's the Russians and Arabs as well as the BoE and the UK Gov. At least in Cyprus some of the speculators took the hit.

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Unlike the UK where it's the Russians and Arabs as well as the BoE and the UK Gov. At least in Cyprus some of the speculators took the hit.

You dont think it a bit off that they disregarded hundreds of years of history and just decided a few particular bondholders should get priority over depositors?

The germans/ECB keep pushing this debt on them. Theyre the ones who should take the hit.

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Well at least we know who won't be paying if any banks fail- bankers. They will just sit back on their bonus's and pensions and have a bloody good laugh at the peasants running around trying to clear up their mess.

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Send the bill to Greece. If they don't pay up we invade and steal all their olives. Parkwell for EU president.

They are setting up labour camps in Greece where those who fail to pay their debts will work them off instead- it'll be like old times over there- almost like the Nazis never left.

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... an impossible problem because everybody has already paid when they're blowing their credit bubbles, which they will continue to do until we stop letting them create the money supply as private credit...

blah... grr.... as if anybody cares. Im sounding like a broken record these days.

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blah... grr.... as if anybody cares. Im sounding like a broken record these days.

:lol: I know the feeling. I occasionally stumble across a post in some old thread that has been revived and sit there sharing the outrage of that poster until I realise it's one of my own from years before- some long forgotten rant that reads like it was written yesterday. :unsure:

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You dont think it a bit off that they disregarded hundreds of years of history and just decided a few particular bondholders should get priority over depositors?

The germans/ECB keep pushing this debt on them. Theyre the ones who should take the hit.

Bondholders did not get priority over depositors.

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Bondholders did not get priority over depositors.

True, there was no need for that as the taxpayers bailed them all out! :rolleyes:

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True, there was no need for that as the taxpayers bailed them all out! :rolleyes:

You are incorrect. Bondholders were not bailed out. They were bailed in.

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You are incorrect. Bondholders were not bailed out. They were bailed in.

Bailed in?...does that mean they lost it all?

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Innovative.

Exactly. Wtf are they debating? This was the standard practice in the first place until politicians started meddling.

Edited by Traktion

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... an impossible problem because everybody has already paid when they're blowing their credit bubbles, which they will continue to do until we stop letting them create the money supply as private credit...

blah... grr.... as if anybody cares. Im sounding like a broken record these days.

Don't give up.

Check out: http://www.positivemoney.org.uk

The people running Positive Money are highly intelligent, well educated, strongly motivated and dedicated to taking forward the cause of monetary reform.

It will no doubt be a long hard road but the memes are spreading and gaining real traction and momentum in the MSM. Even some bankers and politicians have taken notice.

Edited by The Spaniard

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Don't give up.

Check out: http://www.positivemoney.org.uk

The people running Positive Money are highly intelligent, well educated, strongly motivated and dedicated to taking forward the cause of monetary reform.

It will no doubt be a long hard road but the memes are spreading and gaining real traction and momentum in the MSM. Even some bankers and politicians have taken notice.

sadly, MMT is much easier on the vote bag of Politicians

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sadly, MMT is much easier on the vote bag of Politicians

Yep, MMT allows for easier troughing and zero transparency. If there's an alt sytem that'll be migrated to, that's the one.

Things will likely get MORE crooked going forward, not less.

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Bailed in?...does that mean they lost it all?

I am not entirely sure whether they have lost the lot or are being treated pari passu (i.e. equally) as those with savings in excess of EUR 100,000. However, what I am sure about is that they have been bailed-in.

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Exactly. Wtf are they debating? This was the standard practice in the first place until politicians started meddling.

Bail-in is a fairly new concept. It is a forced debt for equity swap to allow a bank to be recapitalised and continue trading.

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Bail-in is a fairly new concept. It is a forced debt for equity swap to allow a bank to be recapitalised and continue trading.

"... first impose losses on shareholders and bondholders when a bank fails, followed by depositors with more than 100,000 euros (85,559 pounds)"

I was talking about that part - the deposit guarantee limit and the fact that it only covers depositors was clear from the start. The conclusion being that shareholders and bondholders take the hit ahead of non-guaranteed deposits.

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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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