Off topic: Cdn. bank 'bail in' legislation Canada ‘bail in’.
All Canadians should be alert to the following info via Ed Steer's blog:
https://www.caseyresearch.com/gsd/edition/nick-barisheff-can-a-cyprus-like-bail-in-occur-with-gold
"... People are worried...about interest rates...the banks...Cyprus...you name it. The idea of making a buck is still part of the buying equation, but it has become the secondary reason to buy since the Cyprus incident...especially considering the revelation that the Canadian government is considering the same policy with its own "too-big-to-fail" banks.
Here is a short note that I sent my Member of Parliament on Monday...and I'll be meeting with him next weekend on this issue...
01 April 2013
The Honourable Mike Lake, M.P.
9225-28 Avenue NW
Edmonton, Alberta T6N 1N1
Subject: Canada's 2013 Budget
Hi Mike,
…. Several Canadian readers of the almost 40,000 world-wide subscribers to my daily blog sent me copies of Canada's latest budget that came down just recently. They had some concerns about it...and so do I.
I refer you to pages 144/145 of this document [page 154/155 on the pdf counter] where "Systemically Important Canadian Banks" are discussed. The first bullet point on page 145 [pdf page 155] reads as follows...
"The Government proposes to implement a "bail-in" regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants." [Emphasis is mine. - Ed]
Based on what happened to the banks in Cyprus last week, I'm wondering if you can define what is meant by "certain bank liabilities"? As a starting point, every bank account in Canada is a "bank liability"...your bank accounts, and mine, included.
When [not if] this "proposed" legislation becomes the law of the land, and has to be implemented, will currently-in-place deposit insurance cover any portion of the savings that you and I have in our respective bank accounts...and what kind of capital controls can we expect when this occurs?
One last question I have is regarding the time line for all of this. How soon can we expect our government to draft this legislation and get it passed into law?
I look forward to hearing from you on this matter at your earliest convenience.
With best wishes,
Ed Steer
Edmonton, Alberta
P.S. Just as a "heads up"...and I'm only speculating at this point...but the first bank that will probably require the largess of the Canadian government/taxpayer to bail them out is Scotiabank...as their precious metals division, Scotia Mocatta...along with JPMorgan Chase in the U.S.A...are massively short both gold and silver on the COMEX at the moment...and the amount of money it will cost the Bank of Nova Scotia to extricate themselves from this situation will make your eyes glaze over.