Have you seen the film or read the book THE BIG SHORT? Both are vivid accounts of the stock market bubble which burst in 2008 and caused a financial catastrophe. Congress considered the event serious enough to create legislation to prevent a recurrence. And with the input from a lot of Wall Street lobbyists, the Dodd- Frank bill known as The Wall Street Reform and Consumer Protection Act was passed into law in 2010. All 848 pages of it.
Already the longest bill in US history, another 8,843 pages was added to it in July 2012. The final version is expected to be 30,000 pages long, the equivalent of reading Proust's complete IN SEARCH OF LOST TIME (3.032 pages) ten times I doubt any single member of Congress read the entire bill. This is Congressional transparency?
Under the banner heading of No more bailouts, we now have a structure for bail-ins. The accounts I've read about this law, the most concise information coming from Chris Vermeulen, all boil down to three main points.
1.) FDIC will now recapitalize failed financial institutions by confiscating customer deposits. Depositors are legally defined as an unsecured creditor of the institution.
2.) Claims against a failed institution are to be paid in this order:
I.) Administrative costs
II.) The Government
III.) Employee wages, salaries, or commissions
IV.) Contributions to employee benefit plans
V.) Any other senior liability
VI.) Junior liabilities
VII.) Salaries of executives and directors (keep in mind, this is a failed business)
VIII.) Obligations to shareholders, members, general partners or other equity holders
So after everyone else is paid, you get whatever is left of your savings and checking accounts.
3.) As explained by Mr. Vermeulen, 'money you deposit into a savings or checking account no longer belongs to you. Technically and legally, [your money] becomes the property of the bank, and the bank issues you what amounts to an IOU.
Such a thing would never happen. you say? It happened in Cypress. It happened in Greece. Now the confiscation of your wealth has been made legal here.
Read. Learn. Take defensive action.
Already the longest bill in US history, another 8,843 pages was added to it in July 2012. The final version is expected to be 30,000 pages long, the equivalent of reading Proust's complete IN SEARCH OF LOST TIME (3.032 pages) ten times I doubt any single member of Congress read the entire bill. This is Congressional transparency?
Under the banner heading of No more bailouts, we now have a structure for bail-ins. The accounts I've read about this law, the most concise information coming from Chris Vermeulen, all boil down to three main points.
1.) FDIC will now recapitalize failed financial institutions by confiscating customer deposits. Depositors are legally defined as an unsecured creditor of the institution.
2.) Claims against a failed institution are to be paid in this order:
I.) Administrative costs
II.) The Government
III.) Employee wages, salaries, or commissions
IV.) Contributions to employee benefit plans
V.) Any other senior liability
VI.) Junior liabilities
VII.) Salaries of executives and directors (keep in mind, this is a failed business)
VIII.) Obligations to shareholders, members, general partners or other equity holders
So after everyone else is paid, you get whatever is left of your savings and checking accounts.
3.) As explained by Mr. Vermeulen, 'money you deposit into a savings or checking account no longer belongs to you. Technically and legally, [your money] becomes the property of the bank, and the bank issues you what amounts to an IOU.
Such a thing would never happen. you say? It happened in Cypress. It happened in Greece. Now the confiscation of your wealth has been made legal here.
Read. Learn. Take defensive action.
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