Friends, Following is a good explanation of some features of
the Dodd - Frank bill and the problems they allow. I sent out a info on
this when the bill was passed. You can stick your head in the sand and
say they will never use it. Then why have it??? I would not want
to have large amounts of money in banks that hold a lot of derivatives.
It is not mentioned here but there are accounts that are considered asset
backed and I believe are not subject to this. Do your own checking but I think
accounts that are non interest bering and can not be converted to interest
bering, may be considered asset backed. Wells Fargo has an account called
'Way to Save' that I think qualifies. The Elite always leave a loop whole
for them selves.
Keep in mind that when you deposit money in the bank, the bank can
pretty much do what ever they want to with that money and you are an unsecured
creditor and last to get paid if there is a problem. So choose your banks
and credit unions carefully. I think that a sound community bank or a
Credit Union is safer than the big guys. And/or study up on Bitcoin, and
put enough in it to get you thru a crisis. Bitcoin is an internet
based currency that IRS has ruled is a personal asset. It is only a few
years old but has possibilities.
Ball-In is when they take money out of your account to bail
out the bank as Cyprus did. The FDIC is broke and if under Basell III we
can't print more fiat money, what then?
Thoughts on "Bail-Ins" by SpecialAgentGibbs Late
Wednesday PM
08/20/2014
[SpecialAgentGibbs]
Here's the post that is causing the stir.....
[SpecialAgentGibbs] Vinman August 20, 2014 Be careful to navigate the traps from the bank bail-ins projected on Sept. 2 Watch US Fed calendar for Sept 2 changes after 9am.
[sagefemme] what the hell is a bail in.... i understand bail out but bail in please explain if you can
[SpecialAgentGibbs] Here's a synopsis posted by Sednet1....<<< Please be aware; The Frank/Dodd Act is law. The top five banks: Bank of America, Chase, Citi, Wells-Fargo and 5th Third all have trillions of dollars invested in derivative trades. The courts have ruled that banks involved in derivative trades are required by law to place the derivative trade ahead of all depositors.
....
[SpecialAgentGibbs] Vinman August 20, 2014 Be careful to navigate the traps from the bank bail-ins projected on Sept. 2 Watch US Fed calendar for Sept 2 changes after 9am.
[sagefemme] what the hell is a bail in.... i understand bail out but bail in please explain if you can
[SpecialAgentGibbs] Here's a synopsis posted by Sednet1....<<< Please be aware; The Frank/Dodd Act is law. The top five banks: Bank of America, Chase, Citi, Wells-Fargo and 5th Third all have trillions of dollars invested in derivative trades. The courts have ruled that banks involved in derivative trades are required by law to place the derivative trade ahead of all depositors.
....
In
English this means if a derivative trade comes in for payment the bank is
obligated by law to pay the claim. The bank has the legal right to
reach into all depositors accounts from $1.00 to $100,000,000.00 and use all
deposits to cover the derivative claim.
The bank by law can replace all seized deposits with shares of bank stock to replace the depositor funds seized. When you exchange your funds at the bank if you intend to leave funds with the bank I would ask the bank, "How can I protect this deposit against a bank bail in? Again only a suggestion. Take care, stay well and God bless. So on September 2nd if you have your money in the Bank the Cabal steals it all from you if it is a bank that did derivatives. So do your homework. You have been WARNED!!!!
[SpecialAgentGibbs] So, shall we have a look into this???
[SpecialAgentGibbs] How Dodd-Frank sets up ‘bail-in’ for U.S. banks to follow Cyprus....
[SpecialAgentGibbs] A 2010 financial-reform law sets up a “bail-in” program that puts U.S. bank depositors at risk, according to a new report. “The Dodd-Frank Act of 2010, among other things, codifies a bail-in. It ensures that the United States can conduct the type of bail-in that we saw in Cyprus in the end of March this year,” said Leandra Bernstein, of LaRouchePAC. “In the language of the preamble of Dodd-Frank, it claims to protect the American taxpayer by ending bailouts. That is done by implementing bail-in,” she said.
[SpecialAgentGibbs] To stave off financial collapse, Cyprus bank deposits exceeding 100,000 Euros were seized by the government. Customers lost roughly half of those overage amounts and were issued non-tradable stock for the remainder. Title II of Dodd-Frank establishes an “Orderly Liquidation Authority” – a U.S. bank bail-in program patterned after Cyprus’ action. Instead of repeating the widely unpopular bank bailouts of 2008 and 2009, Dodd-Frank authorizes the Federal Deposit Insurance Corp. to recapitalize failed financial institutions by confiscating customers' deposits.
[SpecialAgentGibbs] YES, by CONFISCATING customer's deposits
[SpecialAgentGibbs] “Such a strategy would apply a single receivership at the top-tier holding company, assign losses to shareholders and unsecured creditors of the holding company, and transfer sound operating subsidiaries to a new solvent entity or entities,” Bernstein said. "Dodd-Frank provides for the creation of a bridge financial company, which is capitalized through the bailing-in of that financial institution -- namely, the unsecured creditors, and also anyone who has investments in that company,” she explained Monday. Bernstein said Dodd-Frank -- named after former Sen. Chris Dodd, D-Conn., and former Rep. Barney Frank, D-Mass. -- undermines U.S. sovereignty. “Essentially you're looking at an international bail-in regime to conduct a cross-border bail-in," she said, outlining one hypothetical scenario:
[SpecialAgentGibbs] “The United States has large exposure to banks in the United Kingdom. If the bail-in mechanism were to be triggered in the United Kingdom, that would directly affect us. If they were to trigger that, as opposed to the United States triggering that, then we would be sucked into bail-in, under the provisions of Dodd-Frank, at the behest of the triggering of the bail-in mechanism by the United Kingdom.” Bernstein said under the current global financial system, banks that would be subject to cross-border resolutions are “highly leveraged, wildly undercapitalized, and rely on classes of what they call assets, which are in the forms of, for example, derivatives, collateralized debt obligations and other contracts, where the propping up of the value of those contracts amount to the appearance of stability, or in the banks' case, solvency.” She said restoring America's Glass-Steagall banking act is crucial to protecting U.S. depositors by rebuilding the wall of separation between commercial banks and investment banking.
[SpecialAgentGibbs] Glass-Steagall was repealed by Congress and President Clinton in 1999 under pressure from Wall Street speculators who needed access to Main Street’s commercial bank deposits. Less than 10 years later, Wall Street suffered a financial collapse that required hundreds of billions in taxpayer bailouts to the country's largest banks. Dodd Frank was passed in the aftermath of the crisis, ostensibly to avoid another speculative bubble. But critics liken it to a band-aid over a festering boil. “If implemented as an act of the United States, an act of the sovereignty of the United States, (Glass-Steagall) would effectively override Dodd-Frank. It would override this bail-in regime as soon as it is implemented,” Bernstein said.
[SpecialAgentGibbs] Now, let's see just what the bill itself actually says, shall we?
[SpecialAgentGibbs] Introduction: Title II, the Orderly Liquidation provision of the Dodd-Frank Act, provides a process to quickly and efficiently liquidate a large, complex financial company that is close to failing. Title II provides an alternative to bankruptcy, in which the Federal Deposit Insurance Corporation (FDIC) is appointed as a receiver to carry out the liquidation and wind-up of the company. The FDIC is given certain powers as receiver, and a three to five year time frame in which to finish the liquidation process. Title II is aimed at protecting the financial stability of the American economy, forcing shareholders and creditors to bear the losses of the failed financial company, removing management that was responsible for the financial condition of the company, and ensuring that payout to claimants is at least as much as the claimants would have received under a bankruptcy liquidation.
[SpecialAgentGibbs] PROVISIONS: Placing a Financial Company in Receivership In determining when a financial company should be placed in receivership under Title II, the Secretary of the Treasury applies a two part test. See 12 U.S.C. § 5383 (Dodd-Frank Act § 203). First, the Secretary looks at whether the company is in default, or in danger of default. See id. A company is in default when it is likely to file for bankruptcy, has incurred debts that will deplete all or most of its capital, has greater debts than assets, or will likely be unable to pay its debts in the normal course of business. See id. (Dodd Frank Act § 203(c)(4)). Second, the Secretary must evaluate the systemic risk involved in the potential default of the financial company. See id. (Dodd Frank Act § 203). Therefore, the Secretary must consider the effect of default on financial stability, low income, minority, or underserved communities, and on creditors, shareholders, and counterparties. See id. (Dodd-Frank Act § 203(b)). The Secretary also considers the likelihood of bankruptcy or private sector alternatives, and what future actions can be taken. See id. If these issues are considered, and the FDIC believes it should be appointed as receiver, the FDIC will take control of the assets, obligations, and operations of the company.
[SpecialAgentGibbs] Receiver Duties of the FDIC As a receiver, the FDIC takes on the duties of transferring or selling assets, creating bridge financial organizations that can help assume assets or liabilities during the liquidation process, and approving valid claims against the company that will need to be paid. To help fund the liquidation process, Title II creates the Orderly Liquidation Fund, a separate fund created by the U.S. Treasury to cover the administrative costs of liquidation for companies under this title. See 12 U.S.C. § 5390 (Dodd-Frank Act § 210(n)). The FDIC may avoid or invalidate certain prior transfers, agreements, leases, or compensation to executives that hinder the ability of the FDIC to carry out its duties. See id. (Dodd-Frank Act § 210). If the financial company is a broker or dealer, in addition to the FDIC appointment as receiver, the Securities Investor Protection Corporation (SIPC) is appointed as trustee that will take over managing any assets that are not transferred to a bridge company by the FDIC. See 12 U.S.C. § 5385 (Dodd-Frank Act § 205).
[sagefemme] unbelievable
[SpecialAgentGibbs] BE AWARE IF YOUR BANK DEEMS YOU AS A DEPOSITOR, TO BE A SHAREHOLDER!!!
[SpecialAgentGibbs] Claim Priority Title II provides a claims process to assert claims against a defaulting financial company, and a series of rules to allow for liquidation of assets and the payment of claim holders according to a list of priority payments. See 12 U.S.C. § 5389, 12 U.S.C. § 5390 (Dodd-Frank Act §§ 210(a)(2), 209(b)). Claims are paid in the following order: (1) administrative costs; (2) the government; (3) wages, salaries, or commissions of employees; (4) contributions to employee benefit plans; (5) any other general or senior liability of the company; (6) any junior obligation; (7) salaries of executives and directors of the company; and (8) obligations to shareholders, members, general partners, and other equity holders. See 12 U.S.C. § 5389 (Dodd-Frank Act § 209(b)).
[SpecialAgentGibbs] The priority list helps advance the goal of ensuring that the executives, directors, and shareholders bear the losses of the failed company by being last in line to receive payment. Title II includes other provisions to hold executives liable, including the executive clawback provision, which allows the FDIC to recover incentive payment and other compensation made to executives from up to two years prior to the company’s failure. See 12 U.S.C. § 5390 (Dodd-Frank Act § 210(s)). Directors and management can also be held personally liable for losses in cases of gross negligence and other bad conduct. See id. (Dodd-Frank Act § 210(f)).
[SpecialAgentGibbs] Regardless of how the FDIC conducts the liquidation, certain base requirements must be met. See 12 U.S.C. § 5386 (Dodd-Frank Act § 206). All action under Title II must be taken to preserve the financial stability of the economy as a whole, not merely to preserve the specific company in question. See id. Shareholders cannot receive payment until all other claims against the company and the Orderly Liquidation Fund are paid. See id. Unsecured creditors receive payment in accordance with the priority list, so executives and shareholders receive payment last. See id. Management and board members who were responsible for the financial condition of the company must be removed. See id. And finally, the FDIC cannot take an equity interest in the financial company for which it acts as receiver.
[SpecialAgentGibbs] SO, it appears that these banks now have a license to not only invest into "planned to fail" scenarios BUT, they can also sieze your deposits to help get them out of it.
[SpecialAgentGibbs] In short our GOV passed a law that relieves THEM of bailing OUT the greedy bash turds BUT also allows them to grab YOUR money
[sagefemme] how do we protect our assets then if not in a bank
[sandytob] SpecialAgentGibbs Do you have any suggestions for us?
[Rocky49] Do credit unions offer better protection?
[sandytob] SpecialAgentGibbs So what can we do?
[SpecialAgentGibbs] I have long said that, IMHO, placing assets into foreign currencies (IN their respective countries of origin), AND hard assets would be my personal safekeeping thoughts....
[SpecialAgentGibbs] How YOU decide to protect YOUR assets, is up to YOU and I strongly suggest seeking professional asset protection advice!!!
The bank by law can replace all seized deposits with shares of bank stock to replace the depositor funds seized. When you exchange your funds at the bank if you intend to leave funds with the bank I would ask the bank, "How can I protect this deposit against a bank bail in? Again only a suggestion. Take care, stay well and God bless. So on September 2nd if you have your money in the Bank the Cabal steals it all from you if it is a bank that did derivatives. So do your homework. You have been WARNED!!!!
[SpecialAgentGibbs] So, shall we have a look into this???
[SpecialAgentGibbs] How Dodd-Frank sets up ‘bail-in’ for U.S. banks to follow Cyprus....
[SpecialAgentGibbs] A 2010 financial-reform law sets up a “bail-in” program that puts U.S. bank depositors at risk, according to a new report. “The Dodd-Frank Act of 2010, among other things, codifies a bail-in. It ensures that the United States can conduct the type of bail-in that we saw in Cyprus in the end of March this year,” said Leandra Bernstein, of LaRouchePAC. “In the language of the preamble of Dodd-Frank, it claims to protect the American taxpayer by ending bailouts. That is done by implementing bail-in,” she said.
[SpecialAgentGibbs] To stave off financial collapse, Cyprus bank deposits exceeding 100,000 Euros were seized by the government. Customers lost roughly half of those overage amounts and were issued non-tradable stock for the remainder. Title II of Dodd-Frank establishes an “Orderly Liquidation Authority” – a U.S. bank bail-in program patterned after Cyprus’ action. Instead of repeating the widely unpopular bank bailouts of 2008 and 2009, Dodd-Frank authorizes the Federal Deposit Insurance Corp. to recapitalize failed financial institutions by confiscating customers' deposits.
[SpecialAgentGibbs] YES, by CONFISCATING customer's deposits
[SpecialAgentGibbs] “Such a strategy would apply a single receivership at the top-tier holding company, assign losses to shareholders and unsecured creditors of the holding company, and transfer sound operating subsidiaries to a new solvent entity or entities,” Bernstein said. "Dodd-Frank provides for the creation of a bridge financial company, which is capitalized through the bailing-in of that financial institution -- namely, the unsecured creditors, and also anyone who has investments in that company,” she explained Monday. Bernstein said Dodd-Frank -- named after former Sen. Chris Dodd, D-Conn., and former Rep. Barney Frank, D-Mass. -- undermines U.S. sovereignty. “Essentially you're looking at an international bail-in regime to conduct a cross-border bail-in," she said, outlining one hypothetical scenario:
[SpecialAgentGibbs] “The United States has large exposure to banks in the United Kingdom. If the bail-in mechanism were to be triggered in the United Kingdom, that would directly affect us. If they were to trigger that, as opposed to the United States triggering that, then we would be sucked into bail-in, under the provisions of Dodd-Frank, at the behest of the triggering of the bail-in mechanism by the United Kingdom.” Bernstein said under the current global financial system, banks that would be subject to cross-border resolutions are “highly leveraged, wildly undercapitalized, and rely on classes of what they call assets, which are in the forms of, for example, derivatives, collateralized debt obligations and other contracts, where the propping up of the value of those contracts amount to the appearance of stability, or in the banks' case, solvency.” She said restoring America's Glass-Steagall banking act is crucial to protecting U.S. depositors by rebuilding the wall of separation between commercial banks and investment banking.
[SpecialAgentGibbs] Glass-Steagall was repealed by Congress and President Clinton in 1999 under pressure from Wall Street speculators who needed access to Main Street’s commercial bank deposits. Less than 10 years later, Wall Street suffered a financial collapse that required hundreds of billions in taxpayer bailouts to the country's largest banks. Dodd Frank was passed in the aftermath of the crisis, ostensibly to avoid another speculative bubble. But critics liken it to a band-aid over a festering boil. “If implemented as an act of the United States, an act of the sovereignty of the United States, (Glass-Steagall) would effectively override Dodd-Frank. It would override this bail-in regime as soon as it is implemented,” Bernstein said.
[SpecialAgentGibbs] Now, let's see just what the bill itself actually says, shall we?
[SpecialAgentGibbs] Introduction: Title II, the Orderly Liquidation provision of the Dodd-Frank Act, provides a process to quickly and efficiently liquidate a large, complex financial company that is close to failing. Title II provides an alternative to bankruptcy, in which the Federal Deposit Insurance Corporation (FDIC) is appointed as a receiver to carry out the liquidation and wind-up of the company. The FDIC is given certain powers as receiver, and a three to five year time frame in which to finish the liquidation process. Title II is aimed at protecting the financial stability of the American economy, forcing shareholders and creditors to bear the losses of the failed financial company, removing management that was responsible for the financial condition of the company, and ensuring that payout to claimants is at least as much as the claimants would have received under a bankruptcy liquidation.
[SpecialAgentGibbs] PROVISIONS: Placing a Financial Company in Receivership In determining when a financial company should be placed in receivership under Title II, the Secretary of the Treasury applies a two part test. See 12 U.S.C. § 5383 (Dodd-Frank Act § 203). First, the Secretary looks at whether the company is in default, or in danger of default. See id. A company is in default when it is likely to file for bankruptcy, has incurred debts that will deplete all or most of its capital, has greater debts than assets, or will likely be unable to pay its debts in the normal course of business. See id. (Dodd Frank Act § 203(c)(4)). Second, the Secretary must evaluate the systemic risk involved in the potential default of the financial company. See id. (Dodd Frank Act § 203). Therefore, the Secretary must consider the effect of default on financial stability, low income, minority, or underserved communities, and on creditors, shareholders, and counterparties. See id. (Dodd-Frank Act § 203(b)). The Secretary also considers the likelihood of bankruptcy or private sector alternatives, and what future actions can be taken. See id. If these issues are considered, and the FDIC believes it should be appointed as receiver, the FDIC will take control of the assets, obligations, and operations of the company.
[SpecialAgentGibbs] Receiver Duties of the FDIC As a receiver, the FDIC takes on the duties of transferring or selling assets, creating bridge financial organizations that can help assume assets or liabilities during the liquidation process, and approving valid claims against the company that will need to be paid. To help fund the liquidation process, Title II creates the Orderly Liquidation Fund, a separate fund created by the U.S. Treasury to cover the administrative costs of liquidation for companies under this title. See 12 U.S.C. § 5390 (Dodd-Frank Act § 210(n)). The FDIC may avoid or invalidate certain prior transfers, agreements, leases, or compensation to executives that hinder the ability of the FDIC to carry out its duties. See id. (Dodd-Frank Act § 210). If the financial company is a broker or dealer, in addition to the FDIC appointment as receiver, the Securities Investor Protection Corporation (SIPC) is appointed as trustee that will take over managing any assets that are not transferred to a bridge company by the FDIC. See 12 U.S.C. § 5385 (Dodd-Frank Act § 205).
[sagefemme] unbelievable
[SpecialAgentGibbs] BE AWARE IF YOUR BANK DEEMS YOU AS A DEPOSITOR, TO BE A SHAREHOLDER!!!
[SpecialAgentGibbs] Claim Priority Title II provides a claims process to assert claims against a defaulting financial company, and a series of rules to allow for liquidation of assets and the payment of claim holders according to a list of priority payments. See 12 U.S.C. § 5389, 12 U.S.C. § 5390 (Dodd-Frank Act §§ 210(a)(2), 209(b)). Claims are paid in the following order: (1) administrative costs; (2) the government; (3) wages, salaries, or commissions of employees; (4) contributions to employee benefit plans; (5) any other general or senior liability of the company; (6) any junior obligation; (7) salaries of executives and directors of the company; and (8) obligations to shareholders, members, general partners, and other equity holders. See 12 U.S.C. § 5389 (Dodd-Frank Act § 209(b)).
[SpecialAgentGibbs] The priority list helps advance the goal of ensuring that the executives, directors, and shareholders bear the losses of the failed company by being last in line to receive payment. Title II includes other provisions to hold executives liable, including the executive clawback provision, which allows the FDIC to recover incentive payment and other compensation made to executives from up to two years prior to the company’s failure. See 12 U.S.C. § 5390 (Dodd-Frank Act § 210(s)). Directors and management can also be held personally liable for losses in cases of gross negligence and other bad conduct. See id. (Dodd-Frank Act § 210(f)).
[SpecialAgentGibbs] Regardless of how the FDIC conducts the liquidation, certain base requirements must be met. See 12 U.S.C. § 5386 (Dodd-Frank Act § 206). All action under Title II must be taken to preserve the financial stability of the economy as a whole, not merely to preserve the specific company in question. See id. Shareholders cannot receive payment until all other claims against the company and the Orderly Liquidation Fund are paid. See id. Unsecured creditors receive payment in accordance with the priority list, so executives and shareholders receive payment last. See id. Management and board members who were responsible for the financial condition of the company must be removed. See id. And finally, the FDIC cannot take an equity interest in the financial company for which it acts as receiver.
[SpecialAgentGibbs] SO, it appears that these banks now have a license to not only invest into "planned to fail" scenarios BUT, they can also sieze your deposits to help get them out of it.
[SpecialAgentGibbs] In short our GOV passed a law that relieves THEM of bailing OUT the greedy bash turds BUT also allows them to grab YOUR money
[sagefemme] how do we protect our assets then if not in a bank
[sandytob] SpecialAgentGibbs Do you have any suggestions for us?
[Rocky49] Do credit unions offer better protection?
[sandytob] SpecialAgentGibbs So what can we do?
[SpecialAgentGibbs] I have long said that, IMHO, placing assets into foreign currencies (IN their respective countries of origin), AND hard assets would be my personal safekeeping thoughts....
[SpecialAgentGibbs] How YOU decide to protect YOUR assets, is up to YOU and I strongly suggest seeking professional asset protection advice!!!
|
sandytob] SpecialAgentGibbs What kind of
professionals are skilled in asset protection?
[SpecialAgentGibbs] sandytob Google is your friend [SpecialAgentGibbs] The EDUCATED get richer, the unaware get poorer [SpecialAgentGibbs] SAGOUT |
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