Remember how horrified we were when we heard that Cyprus banks were allowed to take private deposits to bail out the banks?
This was called a ‘bail in.’
Well, on June 10 when Harper’s latest omnibus budget bill passed, Canada became the new Cyprus.
Carefully buried on pages 144-145 of the budget bill, banks are allowed to rapidly convert certain bank liabilities (your deposits) into regulatory capital.
So thanks to Conservative legislation, your insured deposits, GICs, retirement savings plan, education funds for grandchildren can all be scooped up by your bank if it fails.
This is now the law of the land. Only Parliament can change the law.
This Canadian government ‘bail in’ legislation says nothing about guaranteeing protection for depositors. This means that government doesn’t have to bail out banks as it did, saving taxpayers a bundle.
Wait a minute, aren’t bank depositors taxpayers?
Boy, I’m sure glad I don’t live on Cyprus.