Galt's Gulch

Fed Vice Chair Fischer On U.S. Bailin "Proposals"

Posted by freedomforall 9 years, 7 months ago to Business
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the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding--this cushion is known as a "gone concern" buffer.”
Text of speech:
http://www.federalreserve.gov/newsevents...
SOURCE URL: http://www.zerohedge.com/node/492827

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  • Posted by straightlinelogic 9 years, 7 months ago
    Beware the Cypriot solution: bail ins by depositors. Coming soon to an insolvent bank near you. Remember, legally a demand or time deposit (checking or savings account) is nothing more than a bank's unsecured debt. But for the FDIC, which in no way could handle massive bank runs, all you've got from your bank is a promise to pay you back, if it can, and if it can satisfy all its other creditors, including the government, before it pays you back.
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