Looks like the idea may be spreading.
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.
Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.
“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.
A sense of humor is absolutely essential to survival.
Absolutely correct OTG, it was on last nights news also. I withdrew all my savings from my accounts months ago in preparation for economy troubles both here and globally. In light of our current "worst in 72 years" drought, the effects this alone will have on our relatively small economy & trade compared to other countries, and " financial settlements" that have seen massive amounts of money and funding dished out freely to ridiculous and un-neccessary groups and parties with interests in our country, it could lead to our Reserve Bank with some very big problems. This is no longer the "land of milk and honey" it has long been known for.
When the banks in the US started closing their doors, we pulled everything we had except for enough money to run the household with.
We haven't been putting savings in the bank since.
Whenever we reach a predetermined balance, we pull the excess and tuck it away from view.
If something were to happen here, our losses will be minimized.
Denob your savings are depreciating at the rate of inflation. Buy Gold and Silver.
Denob your savings are depreciating at the rate of inflation. Buy Gold and Silver.
And inflation is considerably higher than the 'official' figures - it's true rate is presently about 8%.
Another report on it.
http://www.stuff.co.nz/business/money/8446573/Kiwis-could-face-Cyprus-style-trim
I think it's outrageous, myself. If so called professional bankers (banksters) screw up then they should be made to pay. Otherwise what's the incentive to be careful and do due diligence? 😈