Alex Mashinsky and Ron Deutsch (General Counsel) discuss how bank bail outs work compared with bail ins and where you can read up more on the topic.
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LEARN MORE ABOUT: Bank Failures
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Banks are critical to the smooth functioning of a modern economy. They collect deposits from individuals and businesses and lend them to others who need them. However, like any other business, banks too can face financial difficulties, the consequences of which can ripple far beyond their individual balance sheets. So, when banks face a financial crisis, how should the government respond? Should it bail them out or bail them in?
Bank bailouts refer to the instances where a government uses taxpayers’ money to rescue a struggling bank. This is done by injecting funds into the bank or taking ownership of it, and then restructuring it to restore solvency and stability. During the 2008 global financial crisis, many governments around the world bailed out their banks to prevent a complete collapse of the financial system. The rationale behind this approach was to prevent the domino effect of bank failures that could lead to a wider economic recession.
However, such bailouts have often been criticized as they reward the reckless behavior of bankers and shareholders, who have taken excessive risks without considering the long-term consequences. Moreover, they transfer the burden of the banks’ mistakes from those who were responsible for them to the general public, who did not benefit from them. This creates moral hazard, where banks feel less accountable for their actions as they anticipate government intervention in case of a financial crisis.
In contrast, bail-ins involve a bank regulator or resolution authority cancelling or reducing the value of shareholders’ and creditors’ claims on the bank, using their funds to recapitalize the bank. The goal of bail-ins is to make the stakeholders of the bank pay for their own mistakes, instead of relying on taxpayers’ money. Bail-ins also ensure that losses are distributed fairly among stakeholders, depending on their shareholdings and liabilities, rather than being borne disproportionately by the taxpayers.
Bail-ins were first implemented by the European Union in 2012 as a part of their banking union project. They were included in many countries’ banking laws in the aftermath of the 2008 crisis, as a more sustainable and responsible alternative to bailouts. However, some critics argue that bail-ins could also have negative consequences, especially if they result in a bank run or damage the financial stability of the banking system.
In conclusion, whether it’s a bank bailout or a bail-in, there are pros and cons to both approaches. While bailouts may stabilize the banking system in the short term, they can create moral hazard and socialize losses. Bail-ins, on the other hand, may take a longer time to be effective and could lead to market instability. Ultimately, the choice of which approach to take depends on the specific situation and the severity of the crisis.
Bail in vs 2nd amendment haha not in America
So what happens to the social security with auto deposit
TAKE NOTICE
HOW THE BANKSTERS GOT INTO YOUR BANK ACCOUNT WITHOUT YOU NOTICING.
THE WAR IN UKRAINE IS UNLAWFUL FOR THE FOLLOWING REASONS
The vast majority of people in the UK voted Brexit, the UK is nolonger part of the EU.
To understand the law for the reasons you must start at the Magana Carta. It give total autonomy to "We the people".. Even the king and Royal Assent was and is subordinate to the law.
"We the people" is the "Ultimate Sovereignty" which belongs to "We the people." "We the people are the fee simple absolute owners of the Ultimate Sovereignty for ever. Ultimate Sovereignty is not a commodity to be traded, it is sacrosanct and is the foundation upon all democracy is built. Any one who would try to undermine the Ultimate Sovereignty commits treason.
Parlimentary Sovereignty on the other hand at all times is subordinate to the will of the "Ultimate Sovereignty" of "We the people.
The banking systems are unregulated.
After the financial crisis of the 1920
Senator Glass Steagal had the COMMON SENSE to introduce the Glass Steagal Act of strict banking regulations which placed a firewall between Depositor banking and Investment banking to prevent abuse of the banking system.
Depositor banking is where your savings, mortgages and pensions are kept safe.
Investment banking better known as casino banking gamble on Wall Street
President Bill Clinton repealed the Glass Stegall Act. He took away the firewall which left the banking system unregulated. The Banksters had a field day. They took mortgages used them to raise Collateral to gamble on Wall Street Subprime volitile property market, when it all went belly up caused the 2007 2008 financial crisis. At the same time Gordon Brown UK chancellor of the Exchequer deregulated the pre 1997 strict banking regulations in Britain. The whole system unregulated The TAXPAYER was forced to bail out the banks to the tune of hundreds of billions. The Banksters kept the profits and socialised their losses. Not one of them were put in jail.
The deficit they created austerity spilled over to the now 2022 financial crisis
According to Rishi Sunak PM Liz Trust the sudden tumultuous increase in interest rates and the cost of living is the war in Ukraine. The war is not about the suffering of the Ukrainian people, it is all about money and power..2015 the UK trained 100,000 Ukraine soldiers long before the war started. These soldiers shelled Russia Ukraine people in East pf Ukraine, killed over 15,000. Hence the reason putin had to intervene to stop the aggression. The Pope was moved to say NATO provoked the war in Ukraine.
Biden and Hunter have multiple billions investments in the North Ukraine. Biden proxy war of attrision couldn't care less about the suffering of the people in Ukraine. His proxy war of attrision is to protect his multi billions investment in Ukraine. The war is all about money and power as it has always been.
But you are financing his war through the increase in interest rates in particular your monthly mortgage payments. The extra interest you pay is being used to finance the war in Ukraine over which you have no control, you either pay or default on your mortgage. Government has placed an unlawful unfettered wind fall raid upon your mortgage to pay for Biden's proxy war.
What homeowners must focus on is once the Government can take money out of your bank account without your permission is unlawful.
There is no legal authority to extract money from your bank account by the back door in such a manner.
The majority of homeowners don't realise how the Conservatives could get unfettered access to plunder your bank account.
The solution to the Conservatives rampant abuse of the people mortgages is to reinstate strict banking regulations to prevent such rampant abuse. Also an injunction against tje orders and decisions made to stop further rampant abuse.
When their Ponzi scheme went belly up Gordon Brown and Alastair Darling rushed an application through Parliament to shift the blame onto a Global crisis. But Bill Clinton was the architect who instigated the crisis in the first place.
You cannot simply repeal strict banking regulations.legistlation. Why would one want to do that, unless of course they are up to no good?
There is overwhelming unequivocable evidence to show reasones why they tried to cover up their wrong doings.
And by the way the Glass Stegall Act and pre 1997 strict banking regulations are still on the statute book.
If Banksters want to gamble on Wall Street please use your own money but not with homeowners family homes in volatile markets. It is not your money you are putting at risk it is the homeowners homes you put at risk of repossession and homelessness.
When the USA and UK could.bailout the Banksters to the tune of hundreds of billions why not bail out the homeowners mortgage?
The Banksters caused the mess in the first place
You are being governed by financial terrorists CRIMINALS.
Lol i just found this vid of Scam-shinky talking about bail ins
What gives with suspending xrp staking rewards?
fdic has been bailing out banks since 1933 with no $ lost. Not saying that you should hang your hat on this is but that is longer than Celsius has been around
Hodl CEL !
Are Celsius funds safe from bail-ins?
bail-in's are going to catch everyone off guard / no one realizes that the money they deposit in the banks is not theirs.
First comment what do I win
To the moon!
Awesome