Tag Archives: banking

CNBC: EU Set For More Cyprus-Style Bail-Ins For Troubled Banks

Despite EU finance ministers failing to reach a banking deal, Jeroen Dijsselbloem, President of the Eurogroup, explains why he still thought the meeting was a success.European finance ministers have reached the basis of an agreement to wind down failing banks and share the costs, Eurogroup President Jeroen Dijsselbloem told CNBC following a 16-hour marathon negotiating session in Brussels.

The agreement is expected to begin with a Cyprus-style “bail-in” process in which major depositors in failing banks are tapped first in an effort to support the lender. (emphasis mine)

CNBC: EU set for more Cyprus-style bail-ins for troubled banks (2013-12-11)

Related Article

ZeroHedge: Part 6 – How Likely Are Bail-Ins? Bank of England Says U.S. “Could Do Today” (2013-12-11)

Unrelated Article

ZeroHedge: Fidelity Now Allowing Bitcoins In IRAs (2013-12-11)

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Filed under Consumer, Economics, Zeitgeist

YouTube: Summary of US Central Banking System from Mike Maloney

This video is a great summary, although it omits any mention of the even-less-well-understood role “shadow banking” (mostly repurchase agreements) plays in currency creation.

Mike sits with Ron Paul and Steve Forbes after the credits roll.

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October 18, 2013 · 7:00 am

Paradox of the Modern Monetary Age

from The Fractal Character Of the Current Bank Run by Jeffrey Snider (RCM, 9/23/2011)

Therein lies the paradox of the modern monetary age. The more the Fed tries to fix the banking system, the more it constrains it within a state of criticality. And owing largely to the myth of protracted nonneutrality, the critical state banking system keeps the real economy in an equally self-similar critical state.

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Filed under Economics, Politics