Canada Already Has Bail-In Framework

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…

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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