06/06/2015 - Financial Repression Risk: Bank Bailins Are Coming!
Financial Repression Risk:
Bank Bailins Are Coming!
GoldCore update on bank bail-in financial repression developments .
– 11 countries face legal action if bail-in rules
are not enacted within 2 months
– Bail-in legislation aims at removing state responsibility
when banks collapse
– Rules place burden on creditors
– among whom depositors are counted
– Austria abolished bank deposit guarantee in April
– “Bail-in regimes” coming globally
The European Commission has ordered 11 EU countries to enact the Bank Recovery and Resolution Directive (BRRD) within two months or be hauled before the EU Court of Justice – The countries are Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France & Italy .. the idea of bank bail-ins is to so that governments do not have to bailout banks again on the next financial crisis.
