Is any one familiar with the term "bail in"

baileyn45

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Dec 2, 2015
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I heard one commentator say this is "Too big to fail on steroids"

This article is from 2013 but is informative.

Dodd-Frank Kills: How The U.S. Joined The International Bail-In Regime


"Hearings continue taking place in the House and Senate to review what exactly was voted into law with the 2010 Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) even as the rules for implementing the law are still being written. According to LaRouchePAC and EIR sources on Capitol Hill, there is little to no recognition of the key fact of Dodd-Frank. Namely, Title II of the Act to establish an Orderly Liquidation Authority, vests the FDIC with the authority to conduct a European-style bail-in. The preamble to the Dodd-Frank Act claims “to protect the American taxpayer by ending bailouts.” This is done, however, through bail-in, a critical feature of the internationally established regime of what is called cross-border bank resolution.

Bail-in, in its simplest terms, is the inverse policy of what was done under Franklin D. Roosevelt’s Glass-Steagall Act and the 1933 Banking Act generally. Under bail-in the bank survives, the depositors do not. As is stated in an IMF review of the policy from April 2012, “The statutory bail-in power is intended to achieve a prompt recapitalization and restructuring of the distressed institution.” In the case of resolving a distressed globally active, systemically important, financial institution (GSIFI), bank creditors, specifically those whose assets exceed the FDIC insurance cap, will be subject to expropriation. This is not normal bankruptcy. Accounts and assets are seized and/or converted to stock under the resolution authority. The institution is prevented from failing. Values of securities are not written down through sale on the open market. And this is done to guarantee the continued operation of the financial institution and the “stability” of the financial system."


This is a full length interview 24:19
If you can't watch watch the whole thing I'd suggest the first 6:00 is incredible. If you can, watch the whole thing. Another segment which is " must see" 11:40 - 19:00.

I'm not familiar with USAwatchdog.org but after a quick check on Ellen Brown she seems pretty legit.
.I put a quick wiki check on her below



Ellen Hodgson Brown is an American author, political candidate, attorney, public speaker, and advocate of alternative medicine and financial reform, most prominently public banking. Brown is the founder[1] and president[2] of the Public Banking Institute, a nonpartisan think tank devoted to the creation of publicly run banks. She is also the president of Third Millennium Press,[3] and is the author of twelve books, including Web of Debt and The Public Bank Solution, as well as over 200 published articles. She has appeared on cable and network television, radio, and internet podcasts,[4] including a discussion on the Fox Business Network concerning student loan debt with the Cato Institute's Neil McCluskey,[5] a feature story on derivatives and debt on the Russian network RT,[6] and the Thom Hartmann Show's "Conversations with Great Minds."[7] Ellen Brown ran for California Treasurer in the California June 2014 Statewide Primary election.[8]
 
Assets in excess of FDIC have always been at the mercy of the institutions.

This is nothing new.
 
Assets in excess of FDIC have always been at the mercy of the institutions.

This is nothing new.
I appreciate the input. I'm curious though from the video it almost sounds like the order in which parties get paid has been changed. In a bankruptcy the assets of the bank are liquidated to pay off the creditors. In a bail in the creditors money is taken in order to keep the bank going. Again from the video, derivative holders have "super superiority " over creditors. Bond holders, share holders and depositors. As Ms Brown says "we get to die and the bank lives" instead of the opposite in a bankruptcy. They speak of this having been done in Cyprus.
 
Assets in excess of FDIC have always been at the mercy of the institutions.

This is nothing new.
I appreciate the input. I'm curious though from the video it almost sounds like the order in which parties get paid has been changed. In a bankruptcy the assets of the bank are liquidated to pay off the creditors. In a bail in the creditors money is taken in order to keep the bank going. Again from the video, derivative holders have "super superiority " over creditors. Bond holders, share holders and depositors. As Ms Brown says "we get to die and the bank lives" instead of the opposite in a bankruptcy. They speak of this having been done in Cyprus.
Oh, yeah, the bank will always fuck over their customers into order to save the shareholders.

Unions and corporations do the same thing. In case of bankruptcy, management always gets first, full payout and then the rest, if any, is proportionally paid out.
 
Assets in excess of FDIC have always been at the mercy of the institutions.

This is nothing new.
I appreciate the input. I'm curious though from the video it almost sounds like the order in which parties get paid has been changed. In a bankruptcy the assets of the bank are liquidated to pay off the creditors. In a bail in the creditors money is taken in order to keep the bank going. Again from the video, derivative holders have "super superiority " over creditors. Bond holders, share holders and depositors. As Ms Brown says "we get to die and the bank lives" instead of the opposite in a bankruptcy. They speak of this having been done in Cyprus.
Oh, yeah, the bank will always fuck over their customers into order to save the shareholders.

Unions and corporations do the same thing. In case of bankruptcy, management always gets first, full payout and then the rest, if any, is proportionally paid out.
Actually that's what's throwing me, the shareholders get screwed as well. They speak of the derivatives as if they were almost a party unto themselves. I'm thinking a derivative is a financial instrument that would be held by the bank. And therefore by the shareholders and bondholders. I always thought I had a decent lay mans grasp of this stuff, leave it to the powers that be to throw me a curve ball.
 
. I'm thinking a derivative is a financial instrument that would be held by the bank..

unless they say exactly what it is you don't know. It could be held by bank or anybody else.
Ah, that makes sense. Ms Brown was specifically noting that they (derivative holders) get paid first
before any creditors. I now see her concerns
.
 
A financial derivative contract is valued per its performance of a particular unit or entity.
 
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Is any one familiar with the term "bail in"?


Ya mean like...

... Sarah Bailin?

Or like...

... when the basement floods...

... Granny be bailin' the water out?

Uncle Ferd thinks it means when ya don't show up in court...

... yer bail gets forfeited an' den the bail bondsman gotta come...

... an' get yer butt an' drag ya a-fore the judge.

Izzat close?

possum thinks it pertains to Marty Balin...

... former lead guitar fer...

... Jefferson Airplane/Starship.
 
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