Austrian bail ins OMG!

[kakia-designs-uk-shop]

Has anyone else seen this? It's all over the internet but not on mainstream news. Apparently the Eu past a law last week to allow bank bail ins in the EU. Some Austrian banks have gone bust and taken depositors money and this is legal ! Can you imagine having savings or even just being in credit at the bank then it's just taken from you and it's legal. Very very scarey.

[kazeran]

Ohhhh! can you tell me where you saw this?
I am a bit of a fan of Max Kaiser and he has been saying this sort of thing would happen for quite some time now.

[kazeran]

Can you tell me where you saw this?
I am a bit of a fan of Max Kaiser and he has been saying this sort of thing would happen for quite some time now.

[kazeran]

Sorry, did not mean to post twice. I pressed the post button and it said the post had been rejected, so I removed the first bit and posted?
Even the powerseller board has glitches....?

[kakia-designs-uk-shop]

I love Max Kaiser he is brilliant especilly the way he tells it !  I saw it initally on youtube. I'm not sure how I stumbled on it but it's out there. Personally I don't fully understand the ins and outs of it all, but it is a very scarey thought that banks can now legally do this - well those in the EU, however, I think it can also happen with banks in the US, but I could be wrong.

[kazeran]

I will have a search on the internet and see what is out there, thank you for bringing this to the forums 🙂
I think I read somewhere that ithe bail in option is in the small print of all US banking contracts?
The bail in option is a complete infringement of the individuals liberty, but unfortunatley it is a reality of the banking business.

[evoman3957]

http://www.telegraph.co.uk/finance/economics/12076186/Europes-trillion-euro-bank-bail-outs-are-over....

It states Britain will not be subject to the rules.

[upthecreekyetagain]

I dont understand what is wrong with idea of bail-ins - far better than bail-outs.

A bail-in is essentially stating that investors in a bank should be responsible for any losses a bank makes rather than tax payers in the event of a collapse - the regulations stipulate that the first 8% of a bank's liabilities must be covered by investors before governments can support a bank with tax payer's money.

What's wrong with that?

[kazeran]

Do you have money in a bank account?

[upthecreekyetagain]

Not more than £100,000 I don't!

[timetravellertoys]

Senior bondholders and depositors over €100,000 will be in line to be "bailed-in"anyone with over 100k in one institution would be mad , about time shareholder took  risk as well as dividends

[******lynda******]

Don't keep more than £75,000 in any one bank in the uk, because that is what is protected if the bank goes bust. You lose the rest. It used to be 30k before the crisis, and it may go down again in future

[colinsfoto]

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@kakia-designs-uk-shop wrote:

Has anyone else seen this? It's all over the internet but not on mainstream news. Apparently the Eu past a law last week to allow bank bail ins in the EU. Some Austrian banks have gone bust and taken depositors money and this is legal ! Can you imagine having savings or even just being in credit at the bank then it's just taken from you and it's legal. Very very scarey.

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Hardly "scarey". Individual deposits up to 100,000 EUR  in banks are protected under EU banking regs.

So far as I am aware, "bail ins" have always been an option for EU banks above that threshold.

All that has changed is that governments of the member states will now not be able to bail failing banks out using taxpayers money. Sounds good to me. If you have more than 100,000 EUR in your back pocket you simply spread it around to keep it safe. Nothing has changed there 🙂

[colinsfoto]

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@******lynda****** wrote:
Don't keep more than £75,000 in any one bank in the uk, because that is what is protected if the bank goes bust. You lose the rest. It used to be 30k before the crisis, and it may go down again in future

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It was £85k for years but the stirling limit is based on EUR100k. Due to the ever falling value of the pound against the EUR, the UK limit was recently revised to £75K.

[******lynda******]

It was raised to 85k after the 2007 crash. Before that, I think it was only 30k.

[evoman3957]

That's why I have always had money invested through " Insurance " based plans & not through Bank based investment port folios. See link......Bank based compensation has gone down from £85,000 to £75,000 ( EU Law, which ALL member states must comply with ).......but Insurance based Investments have been increased to 100%......ALL your money back.........it used to be 95% I believe.

http://www.castlefield.com/media-library/blog/changes-to-the-financial-services-compensation-scheme-...