viernes, 28 de marzo de 2014

EU Completes ‘Single Resolution Mechanism’ for Suicidal Bail-out and Bail-in of Bankrupt Banking System

Fuentes:

http://www.davidicke.com/headlines/eu-completes-single-resolution-mechanism-for-suicidal-bail-out-and-bail-in-of-bankrupt-banking-system/

http://larouchepac.com/node/30248

Información:

EU Completes ‘Single Resolution Mechanism’ for Suicidal Bail-out and Bail-in of Bankrupt Banking System

Wednesday 26 March 2014
‘The SRM will have a Euro 55 billion bail-out fund, supposedly to be contributed by the banks over 8 years, but backed by governments in the meantime, to be used together with bail-in to carry out the EU’s intention of shutting down a significant number of the 120 largest banks, bail out and/or bail-in the bad debt, and absorb these failed banks into the Too Big To Fail banks. This assumes that the coming bank crisis will be relatively small and one-by-one, rather than the reality of the pending systemic collapse.’
EU Completes "Single Resolution Mechanism" for Suicidal Bail-out and Bail-in of Bankrupt Banking System
March 21, 2014 • 1:59PM
The EU reached a "final solution" to the Euro banking system bankruptcy yesterday after an all-night session. German Finance Minister Wolfgang Schaeuble was drawn into the talks around 5:30 a.m. to sign off on the deal. The Single Resolution Mechanism (SRM) will need formal approval by the European Parliament and by national governments, which they intend to accomplish by the end of the EP plenary session in Strasbourg in made-April, the last session before the European elections in May.
The Irish Times reports that the big breakthrough came when they agreed that bail-in will be applied equally — suicide in one nation will be the same as in any other nation. The SRM will have a Euro 55 billion bail-out fund, supposedly to be contributed by the banks over 8 years, but backed by governments in the meantime, to be used together with bail-in to carry out the EU's intention of shutting down a significant number of the 120 largest banks, bail out and/or bail-in the bad debt, and absorb these failed banks into the Too Big To Fail banks. This assumes that the coming bank crisis will be relatively small and one-by-one, rather than the reality of the pending systemic collapse.
The fund will be consolidated from national funds to a joint fund over the eight years. According to Dutch MEP Corienn Wortmann-Kool, this will create a resolution process that would treat banks equally, regardless of the size of the country they were based in. "We want bail-in of creditors and investors to be applied in the same way to all banks irrespective of the member states these banks are located in," she said, using the example of Ireland as compared to larger states such as Germany and France.
The Irish Times reports proudly: "While the plan agreed in December would have meant that a French or German bank, for example, with a large fund behind them would have been able to implement a moderate bail-in, an Irish bank with a smaller national fund would be forced into a deeper bail-in, leading to higher funding costs, she said."
Sovereignty is further intentionally undermined: "The agreement also envisages that the European commission will approve decisions made by the SRM board on resolving banks, rather than member states, though finance ministers will still have the right to intervene in certain cases. MEPs had been trying to limit the power of member states to interfere in the decision-making process, amid fears of political interference."
The fund will also have a borrowing capacity, in case anyone was worried that Euro 55 billion can not cover the $1.4 quadrillion bubble.
The process was described as "democracy at work" by Wortmann-Kool.