Jim’s Mailbox

Posted at 10:04 AM (CST) by & filed under Jim's Mailbox.

Mr. Sinclair,

Cyprus-like capital controls are coming to all of the EU.


New EU rule savers need to fear credit under 100,000 euros
Posted: 7:08:13, 03:27 | Updated: 7:08:13, 15:45

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 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.