Loop Hole Around FDIC Protection is Coming?
This sounds ominous! Greece was first but now it looks like Bail in's are coming with a twist!
serf
http://www.bis.org/bcbs/publ/wp27.pdf
Enhanced liquidity requirements are encouraging groups to hold liquid reserves at the parent level, but it is unclear when and how these reserves should be made available to subsidiaries and branches?
http://investmentwatchblog.com/nov-16-2014-g20-to-implement-a-new-policy-that-makes-bank-deposits-on-par-with-paper-investments/
On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks' capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a "bank run."
"Large deposits at banks are no longer money, as this legislation will formally push them down through the capital structure to a position of material capital risk in any `failing' institution. In our last financial crisis, deposits were de facto guaranteed by the state, but from November 16th holders of large-scale deposits will be, both de facto and de jure, just another creditor squabbling over their share of the assets.
http://www.dw.de/uk-warns-of-bleak-world-economic-prospects/a-18069059
Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy," the prime minister said in an opinion piece after returning from the G-20 summit in Australia.
serf
http://www.bis.org/bcbs/publ/wp27.pdf
Enhanced liquidity requirements are encouraging groups to hold liquid reserves at the parent level, but it is unclear when and how these reserves should be made available to subsidiaries and branches?
http://investmentwatchblog.com/nov-16-2014-g20-to-implement-a-new-policy-that-makes-bank-deposits-on-par-with-paper-investments/
On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks' capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a "bank run."
"Large deposits at banks are no longer money, as this legislation will formally push them down through the capital structure to a position of material capital risk in any `failing' institution. In our last financial crisis, deposits were de facto guaranteed by the state, but from November 16th holders of large-scale deposits will be, both de facto and de jure, just another creditor squabbling over their share of the assets.
http://www.dw.de/uk-warns-of-bleak-world-economic-prospects/a-18069059
Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy," the prime minister said in an opinion piece after returning from the G-20 summit in Australia.
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