Ollie Rehn – Depositors To Take Hit If An EU Bank Fails Under Planned Law

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Hey, here’s a great idea, let’s make the Cyprus solution official. Ollie Rehn has disclosed that the EU plans to make it official in law for governments to steal your money when banks go bankrupt. Looks like the Dutch Finance Minister wasn’t alone in thinking this was a great idea after all.

(Reuters) – Big bank depositors could take a hit under planned European Union law if a bank fails, the EU’s economic affairs chief Olli Rehn said on Saturday, but noted that Cyprus’s bailout model was exceptional.

“Cyprus was a special case … but the upcoming directive assumes that investor and depositor liability will be carried out in case of a bank restructuring or a wind-down,” Rehn, the European Economic and Monetary Affairs Commissioner, said in a TV interview with Finland’s national broadcaster YLE.

“But there is a very clear hierarchy, at first the shareholders, then possibly the unprotected investments and deposits. However, the limit of 84,890 pounds is sacred, deposits smaller than that are always safe.”

The European Commission is currently drafting a directive on bank safety which would incorporate the issue of investor liability in member states’ legislation.

To secure a 10 billion euro EU/IMF bailout last month, Cyprus forced heavy losses on wealthier depositors. Initially it had also pledged to introduce a levy on deposits of less than 84,890 pounds – even though they are supposedly protected by state guarantees – before reneging in the face of widespread protests.

Source: Reuters


Precious Metal Purchasing Act – SB3341

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The Precious Metals Purchasing Actis a very disturbing move which is recently introduced by Illinois to keep a close eye on precious metal buyers and sellers.

So let me get this straight.  First they want gun registration and now precious metal registration?  I’m sure the government would only use such information in our best interests, because as we all know: Your Government Loves You.  Sounds reasonable, after all, only “terrorists” buy guns and gold anyway.

Meet the ” Precious Metal Purchasing Act” or SB3341, brought to you by the lovely folks at the Illinois 97th General Assembly:

Synopsis As Introduced
Creates the Precious Metal Purchasing Act. Provides that a person who is in the business of purchasing precious metal shall obtain a proof of ownership, create a record of the sale, and verify the identity of the seller. Provides that a person who is in the business of purchasing precious metal shall not pay for the precious metal in cash and shall record the method of payment. Requires the purchaser to keep a record of the sale for one year or, if the purchase amount is over $500, for 5 years.

Read more on the bill here.

Click here to get Rick Santelli’s reaction (always interesting).

Source: libertyblitzkrieg.com

Hungary Set to Repeal Its New Law On Central Bank

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The Hungarian Foreign Minister Janos Martonyi spoke about repealing the law it recently introduced on its Central Bank as it bowed to pressure. Its bond yields have risen significantly, currency has collapsed and CDSs have surged to new records. As Hungary positions itself for a bailout it is open to negotiations on the new law which it brought in to have more control over its Central Bank.

Reuters reported

“Hungary’s government is ready to consider modifying disputed legislation if the European Commission deems it necessary, Foreign Minister Janos Martonyi told the bloc’s executive and European Union partners. “We fully respect the authority of the European Commission, the guardian of the EU treaties,”

ZeroHedge reported

 Hungary, which wants to secure a multibillion euro financing deal with the International Monetary Fund and the European Union, is locked in a legal dispute with the European Central Bank and Brussels over a new central bank law.

 The European Commission last month asked for the law, which it worried will compromise the bank’s independence, to be repealed.

 Martonyi said the government was ready to conduct dialogue with anyone who raised concrete concerns.

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