Pandora’s Box has been opened.
And all the demons of lawlessness – shrieking “Do what thou wilt” and “Might beats Right” – have flown out.
From the New Zealand Herald:
Kiwis with money in the bank could see their nest eggs and savings dwindle in a government move the Greens say is a “Cyprus-style solution” to help out failing banks.
New Zealand banks are readying their IT systems for Open Bank Resolution, a Reserve Bank policy that in extreme cases like insolvency would see a bank’s losses shouldered in part by its shareholders and creditors – including everyday depositors.
The Reserve Bank has the power to freeze bank deposits but up to now has lacked the technical infrastructure to implement it – hence their requirement for banks with retail deposits of more than $1 billion to change their systems and meet their requirements by July 1.
Under the policy, which can only be activated by the Minister of Finance, if a bank fails a statutory manager is appointed to calculate the bank’s liabilities.
The statutory manager can then freeze a percentage of customers’ bank deposits to cover those liabilities before it reopens the next trading day.
But the Green Party’s co-leader Russel Norman said OBR was a “Cyprus-style solution” that would see small depositors suffer to fund big bank bailouts.
“Bill English is wrong to assume everyday people are able to judge the soundness of their bank,” he said. “Not even sophisticated investors like Merrill Lynch saw the global financial crisis coming.
Prime Minister John Key said the OBR policy was a “last-resort facility” and when told that few people seemed to know about it he responded that it was unlikely to be used.
Where have we heard that before?
Oh yes, that’s right. Cyprus.
Where the Finance Minister told the people on March 1st that: “There is really no more stupid an idea even to consider […] a haircut on bank deposits.”
Only days later, a 10% “haircut” on deposits is a very ‘live’ option.
Now you know just how much you can trust the politico-bankster “unholy alliance” to safeguard your savings.
There is an old saying: “Possession is 9/10ths of the law.”
Clearly, this “logical rule of force that has been recognized across ages” is now the new (old) standard for law and order.
They have it. And you don’t.
Find somewhere else to stash your cash.