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IPFS News Link • Central Banks/Banking

Are Bankers Planning Bail-Ins Using Depositors' Money?

•, James Corbett

James Corbett says that, in 2008, banks were bailed out with trillions that left taxpayers on the hook to pay for "too big to fail" banks, but people were critical of the scheme, so governments, instead of holding bankers accountable or allowing banks to fail, devised a new scheme: 'bail ins' that allow banks to take money from its unsecured creditors, including depositors and bank shareholders. Bank depositors now risk losing a portion of their deposits. However, since each account is protected by the Federal Deposit Insurance Corporation up to $250,000, the scheme would covertly revert back to passing the bill to taxpayers who will have to fund the FDIC, which quickly will be bankrupted by the demand for payouts. Businesses that hold larger accounts for cash flow and payroll will not be covered at all by FDIC and, therefore, will be be hit twice. Corbett has much to say about what to expect and offers ideas about how to get your money out of harm's way. -GEG