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Greece, EU Commission try to calm citizens: “Deposits in National Bank & Eurobank are safe”

Greek government spokesman Simos Kedikoglou rushed Monday morning to calm down depositors, concerned about their money in accounts of National Bank and Eurobank after the merger was called off. “Deposits are safe, the banking sector is shielded,” Kedikoglou told a private television channel.

Short time later, EU Commission felt also obliged to assure customers of the two banks. “I don’t see the reason, why customers should worry,” Simon O’ Connor, spokesman of EU Commissioner for financial affairs Olli Rehn told reporters in Brussels, when he was asked whether deposits in National Bank and Eurobank could undergo a haircut, following the bad Cyprus example-template.

Of course, neither O’ Connor, not Kedikoglou have reasons to worry about. They have good paid jobs and do not need to grab their savings to come along during the month.

But if they believe, low-pensioners, jobless and low-incomers would leave their savings to the banks to be seized for the banks rescue, they live on another planet. Because, on this very planet we live on, bad examples and warning messages about bail-ins do nothing else but trigger worries…

 

 

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2 comments

  1. The simple fact that they maintain there is nothing to worry about is extremely worrying. Do these people really think anybody still believes a word they say? They really have got their heads so far up their …. they can’t smell their own shit any longer…
    They need a serious dose of real-world experience, but at this stage they have been living in their self sustaining land of make belief that the shock of experiencing reality by stepping out of it would probably kill them.

  2. Looks like it’s come to a policy of “anything goes” when banks need to save their backsides and those of the “bondholders”.

    ABN AMRO, one of the largest banks in Europe announced in a letter to clients that it would no longer allow clients to take delivery of their precious metals and instead will pay account holders in a paper currency equivalent to the current spot value of the precious metal. Thus, instead of legally owning a risk free, physical asset (a bullion bar or a bullion coin), the bank’s clients are now unsecured creditors and are now exposed to the bank and the financial system – somewhat defeating the purpose of owning precious metals.

    Meaning, you can buy gold, no problem, but they won’t give it to you. they’ll hang on to it and give you the going rate on the day you buy it, in paper money…

    The CEO of Unicredit Federico Ghizzoni said yesterday that it is “acceptable to confiscate savings to save banks.” (Note that he doesn’t even attempt to dress it up as “borrowing” and given shares etc in return, he simply confiscates)
    He said that the savings which are not guaranteed by any protection or insurance could be used in the future to contribute to the rescue of banks who fail and that uninsured deposits could be used in future bank failures provided global policy makers agree on a common approach. This advocate of organized official theft is also a Member of the Board of Directors of Institute of International Finance in Washington, Member of the International Monetary Conference in Washington and Member of the Institut International d’Etudes Bancaires in Brussels.
    This man, whose bank has broken every rule in the banking book is calling for a global coordination of deposit confiscations to rescue failing banks.

    What we cannot accept is differentiation country by country inside the same area. I would strongly suggest to make this decision not only within Europe but within the Basel Committee, where all countries are represented.

    source: Goldcore

    It’s obviously not just Greek deposit holders who need to worry about where this is going. The confiscation of deposits, especially deposits over the €100,000 level seems likely in other European countries and could be seen in indebted nations globally.