From New Zealand’s Scoop.com:
National planning Cyprus-style solution for New Zealand
Tuesday, 19 March 2013, 11:32 am
Press Release: Green Party
19 March 2013
National planning Cyprus-style solution for New Zealand
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.
Again, an excellent idea — raiding the accounts of those who had nothing to do with the fiscal management of a given banking institution(s) — but who only made the mistake of having their accounts present at same.
You see? I said the concept would take off. Great ideas like this are starting to make their rounds and will spill over into other countries. Viral ideas for Leftists, anyone? ATM runs in New Zealand, anyone? And with ideas like this, why put money in a bank if it’s nothing but fodder for capricious government raids?
How long until DC gets the idea as “their own”?
BZ
New Zealand will probably back off of this, especially after seeing Cyprus do the same. The consequences are too great but you are right that the Leftists are salivating at the idea. They will probably try to get “creative” and figure out something similar but not so blatant.
My best guess? This really WILL go viral in a week or less.
BZ
Once again we lead the world. Why bother with piddling little depositors when you can TARF the entire tax paying base?
I find this an amazing abrogation of most EVERYone’s rights.
BZ
Governments all over the world are now into grabbing any pool of money that they can get their hands on!
Some day they may push, and rouse something of a “pushback.”
BZ