a Cyprus-like scenario would happen here too. Saving big banks who give away credit cards like confetti and beg even kids just out of their teens to start borrowing without giving two hoots about how they will make good on loans, is more important to Jim Flaherty and his boss Stephen Harper, than the stupid citizens who have voted them to power.
Yup .... your Conservative govt. in action, stealth action .... against YOU !!!
Brian Lilley writing at his blog:
.....I started asking on Monday, and again on Tuesday, whether the confiscation of money from private bank accounts could happen in Canada the way it has happened in Cyprus. My argument was that yes it could, especially given that Cyprus is a modern European nation and that the decision to dip into accounts was made by finance ministers and officials from countries such as Germany, France and Italy.
This was not a Robert Mugabe theft of cash. If it can happen there then it can happen here.
Little did I know that the answer was already in the budget on page 145 (155 of the PDF) ...................
.....“Bail-in” is exactly how Eurozone officials described what happened in Cyprus (details here and here). In order for the country to get the bail-out from the EU, the banks needed to get a bail-in from their depositors. At first this meant every depositor and then just those with deposits over €100,000.
I asked officials from Finance Minister Jim Flaherty’s for comment on what this section means to them, here is the response from Flaherty’s Director of Communications Dan Miles.
“Bail-in arrangements are NOT ‘bail-out’ arrangements∙No denial in there that depositors will be asked to pay up if Canadian banks fail. Some think that is a probability that will never happen but obviously the Finance Department thinks it could happen or it would not devise rules. The Big Six Banks were also recently told to ................
Under a ‘bail-out’ arrangements, taxpayers money has to be used to save a failing financial institution∙
Under a ‘bail-in’ arrangements, a failing financial institution has to tap into their own special reserves or assets (which they have been forced to put aside) to keep their operations going∙
This keeps the financial institution in tract, without risking taxpayer money. This is what Canada is doing, in line with recent international agreements.”