NZ turning Cypriot - Confiscation contagion?

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CriticalSilver

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Any body in NZ know about this story?
The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill English's favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank's bail out.

"Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand - a solution that will see small depositors lose some of their savings to fund big bank bailouts," said Green Party Co-leader Dr Russel Norman.

"The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.

"Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.

"While the details are still to be finalised, nearly all depositors will see their savings reduced by the same proportions.

More: http://www.voxy.co.nz/politics/national-planning-cyprus-style-solution-greens/5/150410
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Then, Jim Sinclair is suggesting the extension of this Cyprus "bail-in" model was planned to replace QE as a bail-out mechanism and this inside information has seen the historic shorting of gold drive its price down in the face of increasing global uncertainty.
http://www.jsmineset.com

So, importantly, is there any truth to the NZ story?
 
Hi Gino, I think JulieW posted something like this a few hours ago from a different source I think.

At first glimpse it would appear to be true but I can't confirm for sure
 
When you think about it... this "bail-in" (as opposed to bail-out) process may return some sanity to the banking sector.

Customers will think twice about which bank they put their money into if they suspect there's a chance they'll lose it. It'll reward banks that follow prudential lending and investment practises.
 
Clawhammer said:
When you think about it... this "bail-in" (as opposed to bail-out) process may return some sanity to the banking sector.

Customers will think twice about which bank they put their money into if they suspect there's a chance they'll lose it. It'll reward banks that follow prudential lending and investment practises.
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+1. The more of these scares the more the mainstream view will change (unfortunately the knee-jerk will probably be to boost the level of intervention by central banks :( )

The only problem is that the banking system itself is fundamentally unreliable because of FRB and even the "safest", most conservative bank is still heavily reliant on a reputation built on propaganda and perception of safety. If "sophisticated" investors can't even predict a Lehmann event with any significant warning what hope does the average punter using the bank as an alternative place to store depreciating fiat?
 
Once the precedent is set deposits won't be safe in any bank, regardless of country.
 
Jonesy said:
willrocks said:
Once the precedent is set deposits won't be safe in any bank, regardless of country.
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ANZ Bank. Close to home? You bet.
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Closer than you may think. The BIG 4 in Australia own the BIG 4 in New Zealand

ANZ - in both Australia and NZ
WESTPAC - in both Australia and NZ
BNZ - owned by NAB
ASB - owned by COMMBANK

There are 2 other banks in NZ smaller than the BIG 4
TSB - Independent
Kiwibank - Government owned
 
The USA federal reserve bailed out two of Australia's biggest banks in 07/08 to the tune of over $4 bullion.

MSM was very quiet on the matter!

Maybe if NZ lets the nuke subs in, they too might get a bailout? :)

Regards Errol 43
 
Simple really, keep only the bare minimum of cash in the bank and the rest in hard assets that they can't steal off you in a hurry.
 
Damn that is a little close for comfort!

My Self Managed Super Fund uses ANZ by default, fortunately as money comes it in it converted to precious metals but I wonder if accounts in a SMSF would be protected in the case of an electronic heist.

I have some money in an offset account against the mortgage, might as well pay it into the mortgage if this is the case, at least when I am in debt I am safe from confiscation.
 
Emanance said:
Making it's way into the MSM...
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10872361
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10872285
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Kiwis with money in the bank could see their nest eggs and savings dwindle in a government move the Greens say is a "Cyprus-style solution" to help out failing banks.

New Zealand banks are readying their IT systems for Open Bank Resolution, a Reserve Bank policy that in extreme cases like insolvency would see a bank's losses shouldered in part by its shareholders and creditors - including everyday depositors.

The Reserve Bank has the power to freeze bank deposits but up to now has lacked the technical infrastructure to implement it - hence their requirement for banks with retail deposits of more than $1 billion to change their systems and meet their requirements by July 1.
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This is so typical. They run these insane scenarios through the smaller countries first (like the CO2 tax) and slowly build up a base of adoption to counter any opposition in the larger more significant economies. It sounds to me like they have been working on this quietly for some time as Jim Sinclair observes, obviously so in New Zealand, and then saw an opportunity to rush it into the Cyprus situation, albeit prematurely. A calculated risk, that backfired because they didn't consider the fallout of screwing the Russians, perhaps.

But now with the rejection of this policy in Cyprus, they will fall back to the slow and steady approach to boiling frogs, by focusing on first NZ, then extending the policy to Australia and so on.

This is not the end, but just the beginning. Cyprus was a just a failure of an opportunistic application of the policy. NZ is the proof of concept and test case for these criminals, which of course means that the Australian Banks and RBA are right on board and already fully aware of the policy direction.

Is it Tony or Julia? Can Rudd come through and extract revenge? Is Carr the dark horse that will win in the end? Stay tuned to the Days of our Politics ... and pay no attention while They prepare the ground work to steal your savings.

Is there any clearer example of why politics doesn't matter?
 
Sorry, I don't know how we got two threads here.

It is the issue with a fractional reserve banking system, that it is aways prone to collapse as there are never sufficient reserves to cover their loans.

But instead of managing themselves appropriately and regulating them for the interests of the community, they will soon be able to just steal the money they need if push comes to shove.

Wake up NZ! Stop it before it spreads.

And if you don't think reinstating the role of gold into our banking system is important for restoring honesty and integrity to it, don't sign the petition to repatriate Australia's Gold. Anybody else, please give it some serious thought and if you believe in it, feel free to promote it through your networks.
 
Australia is a big country but a small population so it is ideal as a test bed.

I remember eBay decided to set the only acceptable payments for auctions as Paypal, a company they own. Where did they try that out? Australia!

The small group of Australian eBayers kicked up such a fuss that they canned the idea but obviously if you pay by any other method they will not give you any support if it goes wrong.

If it had worked in Australia I am sure they would have had a few more trials.

We owe it to the rest of the world not to cave in to these people!
 
Its why i am slowly reducing cash at bank holdings. Let someone else lose money on a bank's failings.
 
Spain, NZ and Cyprus. It's just a coincidence! Definitely no global banking conspiracy to steal people's savings.! :lol:
 
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