Short video explaining Bail-In (Main Board)

by Pepe the Programmer @, Süm Fäggöt and Disloyal Actual Retard, Sunday, July 26, 2020, 13:46 (15 days ago) @ Hillarys Colon
edited by Pepe the Programmer, Sunday, July 26, 2020, 14:43



A "bail out" would be a cash infusion into a failing financial institution like a bank. Doing so protects the assets of both the shareholders as well as the depositors.

Conversely, a "bail in" is basically the practice of giving high-balance depositors a haircut on their deposits. It is the same concept of a "bail out", but done with that bank's depositor's own money.

In Cyprus supposedly this was done at the level of their national bank depositor's insurance (similar to FDIC deposit coverage here in the US.) Any deposits on hand over 100K euros per depositor were converted into that bank's shares.

This is an international standard for dealing with bank insolvency so you can't get away from it.

Instead of tax monies or government debt covering an insolvency, certain levels of deposits are basically liquidated into shares of the bank.

What I've read is that as a depositor the law in 2012 was written that defines you as a CREDITOR of a bank when you deposit funds. When you deposit $1000 you are giving a LOAN of $1000 to that bank. As a CREDITOR you are in line with all other B2B and personal CREDITORS if there is financial difficulty.

I can see why this was done. If the FDIC gets raided for multiple bank failures, this bypasses congressional re-funding debates and votes, etc and makes the banks able to deal with the problem themselves locally.

The SYSTEM is protected. The INDIVIDUALS get the shaft.

So check the solvency, lending practices, and risk exposures of any bank you "deposit" with.


I vill trransmit this information to Vladimir.

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