On Oct. 22, the European Commission (EC) indicted six EU nations for not not passing bail-in legislation after both a G20 resolution, and an EC mandate for depositor funded capitalization programs were passed earlier this year.
The purpose behind bail-ins was in response to the taxpayer based bailouts that took place for the banking system following the 2008 credit crisis and the subsequent insolvency of both American and European financial institutions at the time of the bailouts. Costing tens of trillions of dollars to both taxpayers and central banks, governments were excoriated following these bailouts as sovereign legislatures chose to protect banks who had collapsed the system due to their greed and speculation, and founded the new financial paradigm known as ‘too big to fail’.
The European Commission is taking legal action against member states including the Netherlands and Luxembourg, after they failed to implement rules protecting European taxpayers from funding billions in bank rescues.
Six countries will be referred to the European Court of Justice (ECJ) for their continued failure to transpose the EU’s “bail-in” laws into national legislation, the European Commission said on Thursday.
The referral comes after the Commission issued a warning against Poland, the Netherlands, Luxembourg, Sweden, Romania and the Czech Republic for their non-compliance earlier this year.
The rules – known as the Bank Recovery and Resolution Directive (BRRD) – are designed to stop citizens from ever having to foot the bill for saving banks from going bust, preventing a re-run of events that imperiled Spain and Ireland in the wake of the financial crisis. – Telegraph.co.uk
Perhaps what is most interesting is the attempt by the European Commission to separate taxpayers from depositors since in the majority of these instances, they are one in the same. Only now instead of a government having to print money to bailout a failed bank, the institutions are legally allowed to confiscate a depositors savings, checking, money market, and investment monies to re-capitalize the bank under the imposed EC mandates.
Banks as a whole in the West no longer function as a protected facility to hold and secure people’s money, and anyone who trusts in these institutions does so at their own risk thanks to laws and resolutions brought about following the last financial collapse. And with several mainstream economists looking to raise the bar even higher by proposing a ban on cash itself, it appears to be only a matter of time before the zombie banks created out of the Credit Crisis feel the need to use your money and wealth to keep their propped up institutions afloat.