Tuesday, April 2, 2013

Bernanke : Cyprus like Bank Confiscation Unlikely In America

I think taking deposits must be the model for bailing out too big too fail banks. If Citibank fails this is how it will be contained. The FDIC can’t handle bank runs on the tbtf. I was wondering what the plan was. I knew there had to be one. Keep your money out of the tbtf banks. I’m sure I’m preaching to the choir here but maybe there are a few slackers here.Also with the changes to bankruptcy laws derivative holders have taken 1st lien position ahead of bond holders in cases of bankruptcy. Why do you think Merrill lynch moved their derivative exposure to the BAC side of Bank of America ? So when it goes down the derivative holders will be made whole from the citizens deposits and we the people will be paid back by the FDIC who has 9-13 cents per dollar they insure. You do the math

Press Conference with Chairman of the FOMC, Ben S. Bernanke : FOMC Press Conference: Ben Bernanke does not say bank or wealth confiscation, like we're seeing in Cyprus, would be impossible here in the U.S. But rather he says it would be extremely unlikely. My question is; Would it have been extremely unlikely for such a thing to happen in Cyprus a few years ago? "The U.S. will never, ever seize any American’s bank deposits under any scenario whatsoever … without exception. We respect the rule of law as the basis for our economy, and we will never do anything which interferes with private property rights." says Ben Bernanke