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A Crisis Worse than ISIS? Bank “Bail-Ins” Begin - ”Your Life Savings Could be Wiped out in a Massive Derivatives Collapse”

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The gist of this story:

http://www.globalresearch.ca/a-crisis-worse-than-isis-bank-bail-ins-begin-your-life-savings-could-be-wiped-out-in-a-massive-derivatives-collapse/5498376

A Crisis Worse than ISIS?
Bank “Bail-Ins” Begin… ”Your Life Savings Could be Wiped out in a
Massive Derivatives Collapse”

By Ellen Brown
Global Research, December 29, 2015

is this:

================
According to former hedge fund manager Shah Gilani, writing for Money
Morning, there is. In a November 30th article titled “Why I’m Closing My
Bank Accounts While I Still Can,” he writes:

It is entirely possible in the next banking crisis that depositors in
giant too-big-to-fail failing banks could have their money confiscated
and turned into equity shares. . . .

If your too-big-to-fail (TBTF) bank is failing because they can’t pay
off derivative bets they made, and the government refuses to bail them
out, under a mandate titled “Adequacy of Loss-Absorbing Capacity of
Global Systemically Important Banks in Resolution,” approved on Nov. 16,
2014, by the G20’s Financial Stability Board, they can take your
deposited money and turn it into shares of equity capital to try and
keep your TBTF bank from failing.

Once your money is deposited in the bank, it legally becomes the
property of the bank. Gilani explains:

Your deposited cash is an unsecured debt obligation of your bank. It
owes you that money back. If you bank with one of the country’s biggest
banks, who collectively have trillions of dollars of derivatives they
hold “off balance sheet” (meaning those debts aren’t recorded on banks’
GAAP balance sheets), those debt bets have a superior legal standing to
your deposits and get paid back before you get any of your cash.

Big banks got that language inserted into the 2010 Dodd-Frank law meant
to rein in dangerous bank behavior.

The banks inserted the language and the legislators signed it, without
necessarily understanding it or even reading it. At over 2,300 pages and
still growing, the Dodd Frank Act is currently the longest and most
complicated bill ever passed by the US legislature.
==================

What's unfortunate about this article is that even though this article
comes from:

=============
www.globalresearch.ca

The Centre for Research on Globalization (CRG) is an independent
research and media organization based in Montreal.  The CRG is a
registered non-profit organization in the province of Quebec, Canada.
=============

The article does not explain the concept of depositor bail-in in
Canadian terms.

Here we have our own Canadian think tanks and journalists writing about
US financial structures, threats and risks, and not a whisper on how
similar or different the situation is in Canada.

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A Crisis Worse than ISIS? Bank “Bail-Ins” Begin -  ”Your Life Savings Could be Wiped out in a Massive  Derivatives Collapse” Some Man <Some@Man.works> - 2016-02-07 10:48 -0500

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