stevesainty

http://hat4uk.wordpress.com/2013/08/...id-you-notice/

It seems that if any bank within EEC fails, the guarantee of funds up to €100,000 is not worth the paper it is written on.

The debts of the bank will be repaid by confiscating deposits of more than €100,000 within five days.

Depositors with less than €100.000 will expect a penalty tax.

Have the Eurocrats gone mad???

steviedeluxe

This was debated a few months back?

The reason why this is very unlikely in any major country, including Spain. A lot of revenue comes from the buying and selling of property. Indeed many are already complaining about this in Spain. Why would the govt risk losing all that recurring income by a measure that would probably provoke a revolution? It isn't going to happen.

stevesainty

The article said the law was passed on 1st August.

In a barely read piece a month ago, the International Business Times reported on the rapidly drafted new EU law for “overhauling its policy on how banks receive bumper bailouts”. Be aware: this is an EU move, not a eurozone move: it is already law (it passed on August 1st) and although for now it applies only to the eurozone, it is an EU law. Hardly anyone has commented on this, but the approach being taken matches word for word the 3-card trick George Osborne used six weeks ago when he said:

“In future, taxpayers will not be called upon to bail banks out. It will be down to the creditors and the owners”.

olivefarmer

To my mind the Cypriot bank grab was just a softening up exercise for the real thing in years to come.

Many EU countries are basket cases. When the chips are down and money is needed it will be taken from those with money (bank deposits, equities and so on). It may be dressed up in a fancy scheme where you receive some worthless bonds.

The Spanish banks are horribly exposed to Portuguese debt. That wasn't included in the stress tests. Spanish banks have consumed their bailout money. Portugal needs a haircut on its debts otherwise it goes under. A haircut would however be disastrous for Spanish banks.

Don't think that this is just a PIIGS problem. The UK and France are in a mess too.In fact hardly any of the EU bloc aren't in a mess.

Fred James

Why would anyone with 100k want to put it in a bank?

I certainly wouldn't. They pay rubbish interest and usually charge you for the privilege.

Fredbargate

5% ??? no tax ????

Fred James

Where?

Fredbargate

where my pennies are Fred

Gib

Fred James

But it will still be taxed in Spain at up to 27%.

I will stick to the World Mattress Bank for the time being.

A few % lost is nothing compared to losing the lot.

Fredbargate

Gib doesn't have a tax information exchange agreement with Spain

Library Ticket

But the point is that this agreement appears to have been ratified.

If so anyone within the EU who has money in a bank account risks having it confiscated to bail out the bank if it goes bust.

Stevie DL I know it's not logical thinking but it seems that it could happen.

snikpoh

Ah, ha! so you are condoning breaking the law - nice to know. I thought better of you from your previous posts!

jjh

No, he is not and your point is ??????

snikpoh

He mentioned that there was no exchange of info between Gib and Spain - with a wink icon as though he's hiding something.

If he lives in Gib, then I apologise but am confused as to why it would matter if there were exchange of info. If he's not living in Spain then why should they care?

If he's getting 5% and paying no tax then, as requested previously, why can't he share how he's doing it. I have asked previously but he's never answered.

steviedeluxe

Well yes, anything is possible. But if we go back to the Northern Rock incident, the limit was a lot lower, just 30k iirc. The government knew it would create too great problems if it went under, so it took it over. It's happened more recently in Spain with certain Cajas - they became Bankia. And the reason why the bail-outs have been made in Greece, has been not to help the local population, but to make sure creditors (banks) in other countries, who'd lent money to them, didn't lose all of that loan.
There was an Irish bank that wasn't allowed to go bust - the British govt (ie the taxpayer) bailed it out to the sum of billions, in order that other banks who were owed money didn't lose out.
So yes, it could happen, and anywhere. But if it was allowed to happen in a major country. the events would spread to other exposed banks from other countries. Which is why I can't see it being allowed to develop like that.