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