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Only in Europe could this seem reasonable. This is a horrible precedent and I wonder how much money will move out of EU banks.
by youngerdryas 14y ago
Only in Europe could this seem reasonable. This is a horrible precedent and I wonder how much money will move out of EU banks.
- arethuza 14y agoSo you suggest that the banks should have been allowed to fail and only deposits up to 100K Euro would be guaranteed?
- bitcartel 14y agoEven if you are prudent and spread your savings across different banks, you might still find yourself one day seeking taxpayer help. In December 2012, the FDIC and Bank of England published a paper saying: "deposit guarantee schemes may be required to contribute to the recapitalization of the firm... insofar as a bail-in provides for continuity in operations and preserves value, losses to a deposit guarantee scheme in a bail in should be much lower than in liquidation."[1] In a nutshell: "...the new system raids the Deposit Protection scheme, gives it to the bank instead of you and when that fails to save the bank…then what? The bank fails again and there is no money left in the Deposit Guarantee scheme."[2] [1] http://www.bankofengland.co.uk/publications/Documents/news/2012/nr156.pdf http://www.bankofengland.co.uk/publications/Documents/news/2... [2] http://www.golemxiv.co.uk/2013/03/plunderball-the-new-euro-banking-game/ http://www.golemxiv.co.uk/2013/03/plunderball-the-new-euro-b...