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overtheedge
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European Banks At Risk Of Bail-Ins In 2015 - Moody's and S&P Warn - Mark O'Byrne - gold.ie

If there is little likelihood of of an adverse outcome, then there is little need to establish contingency plans and buy insurance.
When multiple parties jointly decide on contingency plans and insurance, then instead of the conditional "if" one might want to substitute the word "when".

Now if a system can't protect itself from itself and instead looks to depositors for bail-in monies, then perhaps the depositors might want to look at the current iteration of fractional reserve banking. Deposits rarely exceed 10% and more often less than 5% of the total monies lent out. Ergo, seizing ALL deposits won't cover much more than 5-10% of the quantity of money needed to recapitalize the bank. In other words, the bail-in gambit is pure theft in order to possibly give depositors the idea that their bank will survive when the most basic math effectively proves otherwise. In the meantime, the salaries will continue unabated. Oh, and no accountability.

Banks consider monies lent out to be assets. Ask yourself these questions, "Should I consider that $1000 I lent my dead-beat brother-in-law an asset? Should I look forward to using that asset for another purpose?"
Then remember that the money you lent to the bank WAS lent out to your brother-in-law. Welcome to the "Matrix". Agent Smith will be with you shortly to assist with your re-integration.

First, last and always, cui bono.

Good article. Thanks

Commented 3417 days ago

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Beginning of the headline :Europe's banks are vulnerable in 2015 due to weak macroeconomic conditions, unfinished regulatory hurdles and the risk of bail-ins according to credit rating agencies. The economic outlook for European banks in 2015 will be hampered by weak profits, risks of bail-ins and litigation charges, Moody's Investors Service announced Monday. "Weak macroeconomic conditions will continue to weigh on Europe's banking sector in 2015 and banks' low overall profitability implies that Europe's banking sector ... Read More

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