as part of it’s Economic Action Plan 2013.
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…
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
See the top of page 145 in the above document. For those unfamiliar with bank accounting, deposits are liabilities to a bank. Conversion of deposits to capital means theft of people’s savings. The U.S. Government has already stated its priority for “systemically important” banks. If you think that bail-ins can’t happen here, think again. Bernanke did not say that they couldn’t happen here.
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