For those who didn't learn their lesson about not trusting banks back in 2008, Europe is about to make you pay

12:03 PM bail in, bail out, bank, cryptocurrency, deposit, deposit insurance, ecb, gold No Comments

According to the European Central Bank, deposit insurance is 'no longer necessary' as the EU's primary keeper of monetary policy is pushing for banks to remove the insurance requirements that protected bank account holders in the case of a bail-in of their deposits.

Think they know something is coming and desperately need your money for a bail-in?

It is the ‘opinion of the European Central Bank’ that the deposit protection scheme is no longer necessary: 

‘covered deposits and claims under investor compensation schemes should be replaced by limited discretionary exemptions to be granted by the competent authority in order to retain a degree of flexibility.’

To translate the legalese jargon of the ECB bureaucrats this could mean that the current €100,000 (£85,000) deposit level currently protected in the event of a bail-in may soon be no more. 

But worry not fellow savers as the ECB is fully aware of the uproar this may cause so they have been kind enough to propose that: 

“…during a transitional period, depositors should have access to an appropriate amount of their covered deposits to cover the cost of living within five working days of a request.” – GoldCore

With so many alternatives such as gold, gold backed banking accounts, and cryptocurrencies to store your money and wealth, why anyone would trust a bank to store their cash after the bail-ins of 2008, and legislation which saw the institution of the bail-in occur in the aftermath of the financial crisis, is a fool who very much deserves to be departed from their money.