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Monday, August 12, 2013

Cyprus-like capital controls are coming to all of the EU - What to Watch For in Advance

Those fearful of their governments robbing their bank savings may get a clue in advance by reviewing what happened in Cyprus: List of 132 Names Released of Cyprus Elites and Companies Who Emptied Bank Deposits Ahead Of "Confiscation Day" for Commoners. It's probably a good idea not to wait for the 'Confiscation Day', but loosen your reliance on your bank now without panic.

Translated from German
New EU rule savers need to fear credit under 100,000 euros
German Economic News | Posted: 7:08:13, 03:27 

In the case of bankruptcy of the bank also those customers will get massive problems for which the balance to be guaranteed by the official deposit insurance. The current EU proposal provides that customers can withdraw a maximum of only 100 to 200 euro in case of a collapse of its banking daily. This state may last for up to three weeks. Anyone planning major purchases should think in time, as he will get his money. 

These three gentlemen [sic] designing the rules for the banking union, which will be for the savings accounts of every European importance: Herman Van Rompuy (elected by no one), Dalia Grybauskaite (chosen by 68.21 percent of Lithuanians), José Manuel Barroso ( see Van Rompuy). (Photo: Consilium) 

Largely unnoticed by the public, the EU is pushing forward the concrete steps in the event of a banking collapse. A few weeks ago it was decided to carry out banking bailouts surprise attack on a weekend ( here ) and savers over 100,000 euros and shareholders and holders of bonds with a compulsory levy on the banking bailout to participate ( here ). 

Now the Lithuanian Presidency presented the first details of how a bank bailout will actually look like. 

It is extremely unpleasant for those savers who now predominate because of the deposit insurance in safety and believe it will only make "the rich", ie those investors who have more than 100,000 euros. 

The Lithuanian proposal shows that if a bank goes bankrupt, get the small depositors their money not immediately up to four weeks - 20 working days - the savers will have to make do with just the bare necessities., You may withdraw 100 to 200 euros a day - no more. The EU Council under the direction of your chosen anyone in Europe President Herman Van Rompuy originally had proposed to let the saver wait four weeks for their money.

The Parliament was then but this time a little long, demanding deposits of 100,000 euros should be paid within five days. 

However, because the technology is not possible - no bank has so much real money - is the compromise now look like this: 20 days wait for that you get daily 100 to a maximum of 200 Euros from the ATM. 

Three weeks should fear it, as the stock market newspaper quoted from the paper to be up to 2020 for the case in which national supervisors arrive to the conclusion that it does not go faster. In the event that the supervisory authorities have some understanding with the investor or the investor recruit mostly of armed Russians, it will be faster: first 15, then 10 and finally in 2023 seven working days.

In fact, this development means that even those savers who today rely blindly on the commitment of Angela Merkel and Wolfgang Schäuble, that deposits of 100,000 euros are sure to have to tremble or beg their savings., If they really want to keep their money in their hands , need it for major purchases or run a business, the nature of higher spending than 100 € daily - then these savers should consider before, how they want to get their money in the event of a crash their bank.

The current plan shows that in the event of a banking collapse, no one will be able to rely on government commitments. Actually always be "exceptional circumstances" can lead to the savers can also be subject to a penalty tax if they have less than € 100,000 in the bank. 

The Germans, this issue wisely nor denied: The governor of the Lithuanian Central Bank, Vitas Vasiliauskas, told the Reuters news agency that he was aware that the parliamentary elections could delay the process somewhat. But the banks' Union was "the EU a super-priority". 

There is still no agreement on the question of the contribution of banks to pay into the deposit insurance. Here, the EU argues primarily about who calculated the risk presented by the individual banks and the amount of which depends on the post. Here is a remarkable intensification of officials was brought into the document: The contribution "is" now depend on the hazard, while it was said earlier, the contribution "may" be based on the risk.

Be calculated that the contribution to the risk of not "must", as common sense would suggest, is because that national governments will in future be excluded from the calculation of risk. The banks want to control the risks with each other and can therefore set by the European Banking Supervision EBA - that institution that the Belgian Dexia was awarded in a "stress" test as a particularly trustworthy Institute a few months before its spectacular crash.

The EU's plans for the first European bank failures in the age of derivatives and turbo boil down speculation that the crash especially for small investors and savers an existential stress test. For indeed, there are three weeks of dithering, especially for older citizens who have their savings in the bank, a disaster. The failure of a bank is a very grueling process for savers - According to the EU proposal, savers will now have to wait for weeks until they can be sure if they will ever see their money. 

The EU intends to adopt the Banking Union later this year in the most important details.

It will be tight for the savers. 

And, as we now know, not only for the rich.
Original source in German