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PRESS RELEASE

There Are No Rules in Bank Bail-In;
Only the ‘Principle’ of Theft

January 2016

The Troika at work.

Dec. 31, 2015 (EIRNS)—In yet another warning of the coming chaotic looting of the "bank bail-ins," posted on several sites yesterday, economic blogger Michael Snyder says, "Now the exact same principles that were used in Cyprus are going to apply to all of Europe. And with the entire global financial system teetering on the brink of chaos, that is not good news for those that have money stashed in shaky European banks."

The bail-in "principle" is: theft by expropriation of bondholders and depositors, to provide "recapitalization" to an insolvent bank which should, instead, be shut down. Beyond that lawless "principle," there are in fact no "bail-in rules" that resolution authorities in London, Brussels, and Washington are bound to follow. Various rules have been thrown out the window in each bail-in crisis, from Cyprus, to Spain’s Bankia, to Italy and Portugal. One institutional investor expropriated in Portugal’s Novo Banco bail-in yesterday protested, "In the event of bail-in the Central Bank claims the right to change all the rules." The Portuguese Central Bank was being directed by the European Central Bank to, in this case, ignore the rule of so-called "equal treatment" for unsecured creditors.