They're Planning the First Legal "Bank Robbery" in U.S. History

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So-called "bail-ins," which give banks the right to dip into your savings to pay for their lousy financial decisions, have been on the table for years, ever since Cyprus tested the idea.

But they're moving beyond the "testing phase" now.

The latest clue came from a seemingly benign banking conference on December 2, when one man revealed some frightening central government intentions.

And anyone taking careful notes understands the consequences.

They're huge.

You see, the most direct impact will be felt by the biggest account holders. But the indirect impact will hit everyone.

401(k)s… IRAs… Individual brokerage accounts…

The market will not like the newfound acceptance for bail-ins. And it won't get any warning – neither will we. Not from the mainstream financial outlets, anyway.

They're not even covering it.

First, here's the frightening – and all-too-real – scenario….

Get Ready for Too Big To Fail 2.0

When the 2008-2009 financial crisis hit, it was unprecedented in scale and scope. Governments and central banks worldwide acted in concert to save "systemically important" banks through bailouts using trillions in taxpayer money.

Then came Cyprus, and the formula changed.

The fix in that case was a trial balloon, and a successful one at that, and I'll describe it below.

Again just recently, we had the latest evidence this "new approach" is going mainstream, and I can't believe it's not being talked about.

It's already gathering steam, so get ready now…

You're Not Getting the Full Story

Back in June, under the Irish Presidency, European finance ministers met to hash out banking reform. They agreed on the bank recovery and resolution proposal (BRR) and laid out a framework for a Single Resolution Mechanism.

They're aiming to create a central agency that will have the ability to rescue ailing banks without using taxpayer money… in theory. The idea is for the European Union to integrate its banking system to the point where one overarching authority can act as a watchdog and resolve any problems across the entire union.

"Resolution tools" have been proposed in order to deal with future banking crises. These will include logical actions such as the sale of businesses, bridge banks, and asset separation tools. You know, the normal ways of dealing with a distressed business.

That would be benign, if it stopped there…

No One Reported the "December Slip"

On December 10, European finance ministers held marathon talks. Their goal was to reach an agreement by year's end, so measures can be enacted before the current European Parliament's term expires in May.

But some crucial elements of the agreement were left out of the story presented by the Associated Press.

It said the ministers have made headway towards a Europe-wide bailout fund. Whether that fund is to be built up through assessing fees on the banks and member states, and how much control over contributions each country would have, has yet to be finalized.

Here's what wasn't reported…

On December 2, Michael Noonan, Ireland's Minister for Finance, dropped a bombshell at the Future of Banking in Europe Conference. Yet you'd be hard pressed to find any mention of it in mainstream media.

He discussed the need for a "toolkit" aimed at dealing with failing banks, while preserving essential bank operations and minimizing taxpayers' exposure to losses.

The shocker was when a smirking Noonan said "I think the new key phrase is 'bail-in is going to replace bail-out,' with all the implications that that carries."

And it's not just a threat to the European Union…

Join the conversation. Click here to jump to comments…

About the Author

Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.

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  1. Richard | December 18, 2013

    Is this bail in legal, and what kind of accounts are ata risk and at what dollar level?

    • Sandra | December 18, 2013

      Good question Richard. I have funds in a 401K, 3 accounts with my broker (IRA, Roth IRA and just a regular trade account), and ofcourse a Saving account with my bank. I am wondering if these accounts at risk?

      Hopefully we can get an answer.

      Sandra

    • Jerry | December 18, 2013

      That's the $100,000 question Richard! (get it? :-)

    • VedShastry | December 19, 2013

      yes, Dodd Frank legalizes it. you may want to read the paper from FDIC + BoE on global systemic banks aka, GSIFI. US hasn't given an exception to what bank accounts and what dollar level. I suspect @ this stage everything.

    • Mike | January 1, 2014

      … "legal" is whatever Congressional "legal" staff write into legislation passed into law by HR Representatives and Senators who didn't even read the soon-to-be voted "new legislation".

      The bottom line is … neither bank accounts nor "safety" deposit boxes are safe places to put your money any more. The "legal" thieves are even more dangerous than the ones walking the street instead of remaining in prison where they belong.

      Unfortunately … this is all the fault of those who voted … twice … for the most corrupt and incompetent government in American history.

  2. Dave | December 18, 2013

    I suspect that the accounts subject to bail-ins will be similar in nature to those that suffered in Cyprus. I've been reading about this for some time and yes, it is hard to find anyone talking about it.

  3. Gordan finch | December 18, 2013

    The information related to new banking regulation was released quite a while back. it included Bail-in on just about every page and made quite clear that depositors money will be used to prop up failing financial institutions.

    As you said taxpayers will not be made to fund bail-outs.

    If I remember correctly I had read the same information above from BOA and ECB. I also recall the legal concept being the ECB, just a corporate entity partnering with central banks to impliment into ?questionable law, regulations that are just that. invented by banks.

    There certaily is no legal basis to the ECB and central banks having any such rights to steal depositors money.

    Governments will though allow banks to use depositors money instead. The lesson for everyone here is do not put money in banks it is certainly not safe, in any BANK SAFE.

  4. Sandra | December 18, 2013

    I just became a member about 3 weeks ago. I have a question. I followed the links in the article above "Become your own central bank" to the real estate link and I as wondering why VNO is not on the portfolio?

    Sandra

  5. yngso | December 18, 2013

    Richard, they will make it "legal" if it isn´t already.
    I wonder how safe offshore banks in the Carribean, Switzerland and so on – and I´m not suggesting using them as a tax shelter – will be. How big a problem, if any, is it for the IRS or tax offices in other countries if we "export" money?
    Yes, we need to "diversify or die". Can you help us with more details on how to, practical steps to take?

    • Harold | December 23, 2013

      yngso, The fed is ahead of you. there is very few countries you can run to. They all have to report
      back to the IRS your cash or they don't even allow you to open an account. hb

  6. 000057794747 | December 18, 2013

    …and can our ownership in the stock market be in danger, our brokerage accounts?
    Pandora´s box is open, revealing lots of cans of worms being opened. Any information you can share with us will be greatly appreciated, not only by me I´m sure.

  7. fallingman | December 18, 2013

    The rule of law is dead. What's legal is what the Powers That Be say is legal.

    Thanks Mr. Krauth for drawing attention to this impending heist. You're certainly correct in pointing out that the enemedia has failed to cover any of this. Why is that, one might ask? Because the corporatist insider "elite" that would benefit from the ripoff control what news gets covered and what doesn't and how the news that does get covered gets spun.

    EXIT THE SYSTEM NOW. They have you set up for the shearing. All it'll take is a triggering event or two. The plan is playing out perfectly…for the bad guys. Hello serfdom. Here we come…unless you own real stuff they can't get at, that is.

  8. Vortex | December 18, 2013

    I see by the few replies that Americans are as cowardly and sheepish as ever. What a disgustion collection of apathetic humans that remain on thier knees before thier political NWO masters.

    Oh how I feel for my lost nation, but not tears for the many. The great leveling is now underway.

    America and her people deserve the living hell that they will receive via the bankers and politicians.

    You had it, but you were too lazy the fight and keep it!

    • fallingman | December 19, 2013

      You have no idea the years, the traveling, the door to door, the meetings, the editorial conferences, not to mention the buckets of ink and and ocean of dollars I, personally, dedicated to stopping the fascists. Had to say it in a more diplomatic way. It was all pointless.

      The coup is now complete.

      The people reading your comments get it. The problem is the legion of people in the general public who could be more in the dark.

      When you're banker types intent on controlling everything, it helps to own the phude growing and processing network, the medical complex, the insuarnce biz, Big Pharma, the skools, the media, and best of all a central bank, a government with a police force and a military that now look about the same, and all its pretend regulators.

    • Marcus | December 19, 2013

      We never had it my friend, we never had it. Before ever setting foot on America the settlers already sold out to the banks to pay for their loaned trip to America. No, we never actually made it out of tyranny.

      • Brad M | December 19, 2013

        I do not know about that one. Maybe many of them left so they would not have to pay the bank any longer. What, back then a bank would have able to track them and it would have been feasible to send someone overseas to get the payment? Doubt it! To escape the tyranny of the bank of england was also a huge part of the flight to the colonies.

    • H. Craig Bradley | December 19, 2013

      LIVING WITH THE COMING AUSTERITY

      Nobody "deserves" what is probably headed our way, soon. In the same way, Job did not receive the destruction that all the other inhabitants of Sodom and Gomorrah received ( total destruction). Job and his family were spared ( his wife disobeyed and looked back, thus becoming a "pillar of salt" ).

      Job's family lived a happy if not austere life ever after in a rural cave. The luxuries and sensuality of their past in former urban residences were gone forever. However, their lives were spared. We should expect no less and deserve no different.

      • H. Craig Bradley | December 19, 2013

        I'm sorry. It was LOT, not Job, who was advised to leave town while he could. ( He did not want to)

  9. Austin | December 19, 2013

    Why give false information…?
    all depositors in the affected banks, whose account balance exceeded the 100,000-euro insured maximum, take at least a 47.5% haircut on their deposits.

    The cut was actually 9.9%
    As part of the deal, a one-off bank deposit levy of 6.7% for deposits up to €100,000 and 9.9% for higher deposits, was announced on all domestic bank accounts

    FEAR MONGERS !!!!

    • Joseph | December 24, 2013

      @Austin
      No, what you describe was the original plan.
      Eventually this was replaced by the 47,5% cut.

  10. Andy | December 20, 2013

    I read some where about 9 rules or quotes from Jesseys Livermore's book Reminesces of a stock operator, where can I get the link.?

    Many Thanks
    Andy

  11. jacob o 3d myers | December 21, 2013

    I know there going after unpaid taxes from years past because they have been warning about this for years , the sad thing is they will not go after the illegal immigrant , or the non paying immigrant , that refuses to join us in paying even though they are now citizens , I'm an Cheyenne Indian entitled to exemption , but don't because I believe in what this country stands for , but our founding fathers founded the bill of rights , and it is now trampling on their graves , the scandals that would have hung and impeached any other president . why do they tolerate this nonsense , and the defaming of this nations greatest leaders , because of the race tag that is applied to every question about his tactics and tendencies , why cant this president be subjected to the scrutiny that is applied to this office ? or an objection to his taking the jet specifically before the job is done ? the demands for the keys of this country should be getting louder and louder until the white house is locked , and posted guard's bar his entry, closed for lack of payment.

  12. RUSS SMITH, CA | December 22, 2013

    Hi!, Patrons Of Money Morning Et Al:

    The most important reason for Bitcoin is to lesson the demand for gold and put gold miners out of a job?

  13. EastGhostCom | December 24, 2013

    Hilarious how not one person, even "experts", mentions that in order to have a One World New World Order, all the "old" order must be sacrificed, and that includes your wealth, your possessions. Look into AGENDA 21 and understand this "grab" does not begin nor end with money alone.

  14. EastGhostCom | December 24, 2013

    You might consider this information – quotes from the founders of the New World Order – researched by zealots and presented directly. Youtube video by Walter Veith, reading UN / NWO quotes — http://www.youtube.com/watch?v=vQnH4waAXGc

  15. RAEBURN MOORE | December 26, 2013

    this could be the beginning of the end the bible speaks of in the book of revelation. ONE WORLD GOVERNMENT , THE STAMP OF 666 STAMPED ON EVERY ONE OR YOU CANNOT BUY OR SELL. THEN WORLD COLLAPESE.

  16. WILLIAM | December 30, 2013

    THIS IS A VERY GOOD ARTICLE. YES, MORE PEOPLE SHOULD KNOW THIS.

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