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Thursday, August 03, 2017

It's Your Money But You Can’t Have It: EU Proposes Account Freezes To Halt Bank Runs

If there is a run on the bank, any bank in the EU, you better be among the first to get your money out.

Although it’s your money, the EU wants to Freeze Accounts to Prevent Runs at Failing Banks.

European Union states are considering measures which would allow them to temporarily stop people withdrawing money from their accounts to prevent bank runs, an EU document reviewed by Reuters revealed.

The move is aimed at helping rescue lenders that are deemed failing or likely to fail, but critics say it could hit confidence and might even hasten withdrawals at the first rumors of a bank being in trouble.

The proposal, which has been in the works since the beginning of this year, comes less than two months after a run on deposits at Banco Popular contributed to the collapse of the Spanish lender.

Giving supervisors the power to temporarily block bank accounts at ailing lenders is “a feasible option,” a paper prepared by the Estonian presidency of the EU said, acknowledging that member states were divided on the issue.

EU countries which already allow a moratorium on bank payouts in insolvency procedures at national level, like Germany, support the measure, officials said.

“The desire is to prevent a bank run, so that when a bank is in a critical situation it is not pushed over the edge,” a person familiar with German government’s thinking said.

The Estonian proposal was discussed by EU envoys on July 13 but no decision was made, an EU official said. Discussions were due to continue in September. Approval of EU lawmakers would be required for any final decision.

Under the plan discussed by EU states, pay-outs could be suspended for five working days and the block could be extended to a maximum of 20 days in exceptional circumstances, the Estonian document said.


Anonymous said...

Elites speeding up the new world order.

Jim said...

This has already happened here-- remember the 'Savings and Loan Crisis'?

If it hits the fan, you will NOT be able to get your money. Maybe for a short time, but probably for a longer time.

They close and lock the doors, and that is that.

lmclain said...

What they REALLY want is for the cash to remain IN THE BANK so elite educated professionals (with the gift of inside info) can get THEIR money out safely before the serfs are told that somehow, in some strange way, their money has mysteriously disappeared.
The PAPER gains on the elite's stocks and bonds MUST be paid FIRST, well before any serf gets to touch the money they have actually EARNED and deposited.
THAT is the plan.
Wait until everyone is fat in the stock market HERE. Then watch as they raid it AGAIN, cashing out their paper gains and crushing the 401(k)'s of the working class.
$70 BILLION just ain't enough. They want all of it.
Keep cheering.

Anonymous said...

You are correct 100% and there are a lot of economists screaming this truth on alternative media, but few will listen.
Most Americans are convinced that MSM tells them the truth about everything.
MSM is telling all of us the Stock Market is safe and will go up forever.
There will never be another recession.

I suggest people buy a safe and keep some of their money at home in currency form.

Anonymous said...

Buy gold in spendable form (coins) NOW. A gold bar won't do you much good at the grocery store.