Economy
Related: About this forumResolution Against the Confiscation of Customer Bank Accounts by “Systemically Important” Banks
Steal it and use it however you like.
All LD and county Democratic Party organizations should consider this resolution
Resolution Against the Confiscation of Customer Bank Accounts by Systemically Important Banks
WHEREAS the 2008 financial bailout has committed American taxpayers to permanent, blind support of an ungovernable, non-regulated, hyper-concentrated new financial system that exacerbates the behavior of bankers that caused the crash; and
WHEREAS Attorney General Eric Holder has publicly stated that he will not prosecute the clearly criminal behavior of large financial institutions because it will have a negative impact on the national economy; and
WHEREAS since the bailout these banks have become even larger and are still engaged in the same risky behavior as before; and
WHEREAS European austerity hawks have recently required Cyprus banks to confiscate money from the accounts of customers to essentially repay what are gambling debts of those banks; and
WHEREAS a joint paper by the U.S. Federal Deposit Insurance Corporation and the Bank of England dated Dec. 10, 2012 recommends the confiscation of customer deposits on the grounds that these institutions no longer have the resources to do a bailout which is expected to be even larger than that of 2008; and
WHEREAS Canada, New Zealand, Spain and other countries have proposed similar policies, indicating that this will be the default policy of the entire global financial elite; and
WHEREAS enabling legislation in the US has not yet been proposed or passed by Congress;
THEREFORE BE IT RESOLVED that _________ call on our Democratic representatives to not only refuse to make American bank depositors liable for the gambling debts of vastly overpaid financial operators, but to originate and pass legislation specifically forbidding this; and
THEREFORE BE IT FURTHER RESOLVED that _________ call on our Democratic representatives to reinstate financial regulation of large banks and investment firms; and
THEREFORE BE IT FURTHER RESOLVED that _________ direct our Democratic National Committee representatives put this issue on the agenda of the DNC; and
THEREFORE BE IT FINALLY RESOLVED that the ________ send copies of this resolution to the members of our Democratic Congressional delegation, Senate Majority Leader Harry Reid, House Minority Leader Nancy Pelosi and Attorney General Eric Holder.
REFERENCES
http://www.fdic.gov/about/srac/2012/gsifi.pdf
http://readersupportednews.org/opinion2/277-75/15395-secret-and-lies-of-the-bailout
http://www.nationofchange.org/it-can-happen-here-confiscation-scheme-planned-us-and-uk-depositors-1364735979
Demeter
(85,373 posts)Get out of Chase, Citi, and Bank of America and into a reputable credit union.
eridani
(51,907 posts)Under the FDIC/BOE joint paper, accounts could be seized by the failing bank and converted to stock equity as part of a bail in scheme although the stock would be worthless because the bank would have already failed.
Don't be deceived into thinking the "bail in" is a European heist. There is a plan to confiscate savings in New Zealand if necessary to save the banks. Canada also has a confiscation plan in the wings should their banks falter. The European Union has just reached an agreement where shareholders and depositors will be tapped to bail in any bank in trouble.
But let's look at the U.S. and imagine what might happen here. Consider that our largest banks have derivative contracts with a notional value of more than $700 trillion (think $700,000 BILLION). The entire world GDP is only $70 trillion, therefore the liabilities of the big banks could not be covered by the entire GDP of the United States.
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Now let's take JP Morgan Chase, which has $1.1 trillion in deposits, and Bank of America, which also has over $1 trillion. Again, remember the gambler, Chase, has about $70 trillion in bets out there, but is holding only about $1 trillion in deposits and another trillion in assets. It has made bets with a value approximately 35 times all the money it has access to. Again, this is YOUR money the bank is betting with, not their money.
Bank of America also has about 30 times its assets in derivative bets. Citigroup and Wells Fargo each have over $900 billion in deposits and also many times their assets in derivative bets. If any one of these big banks fails, they are so interconnected that it is likely to bring down the other large banks. In fact, both Bank of America and JP Morgan Chase have moved their riskiest derivatives from their uninsured trading houses to the FDIC insured subsidiaries, which are their retail banks, putting the funds in those accounts at a significantly increased risk.
oldhippie
(3,249 posts).. while I was watching the Zimmerman meltdown?
eridani
(51,907 posts)No laws specifying that have been enacted, but we should be proactive with our legislators.