I call on the government to categorically rule out a bail-in and properly fund the bank guarantee scheme.
Transcript
As a servant to the many amazing people who make up our one Queensland community I note that in the last few weeks we have seen with the failure of Silvergate Bank and Silicon Valley Bank what is in aggregate the largest banking collapse in US history. Australia is not America and it is not Europe. If everyone keeps their heads, we will be fine. Our big four banks are bastards, yet they are well capitalised. Nonetheless, it would be wrong to not take this opportunity to revisit how to save a failing bank.
I remind you that there are two choices: bailing out, with a large injection of taxpayer money, increasing debt for everyone, or bailing in, which is where the banks take their depositors’ money to save themselves. A bail-in still requires the bank to close for days or weeks, preventing customers accessing any money left in their accounts. Business are left without money to pay staff or suppliers. The effect on the economy is catastrophic.
Everyday Australians trying to pay for their shopping would find their account empty or their card suspended. Travellers may be stranded.
One Nation introduced a bill to prevent bank bail-ins and to protect the people. Labor and the Liberal-Nationals defeated our bill in 2020. One Nation did lead a successful campaign against the cash ban bill that the Liberals, Nationals and Labor proposed in 2021, so Australians can still use cash in an emergency. This is relevant again because President Biden initially chose to seize half of Silicon Valley Bank depositors’ funds and freeze the rest for up to three years. That’s a bail-in. What followed was a run on all banks, forcing the president to backflip and instead initiate a bailout.
Australia has a bank guarantee scheme, a bailout, but it’s a con trick. There’s no funding and no requirement to use it. It covers only $20 billion per bank—$80 billion total. This is supposed to protect $1 trillion in depositors’ funds. It’s eight per cent. I call on the government to categorically rule out a bail-in and properly fund the bank guarantee scheme.
The guarantee is for anything under 250k. Anything over that is fair game.
This government doesn’t have funds to cover everyone’s deposits so eventually the banks will bail in with funds under 250k as well.
Well, may I suggest one takes their money out then, but then again so many are in debt that they have no money to take out anyway.
It has started….bring in Bail-ins and a rebellion will begin. There will be little chance of peaceful protests, there will be blood if the little people – pensioner or pensioners who do not have superannuation, those who rely of disability assistance, those who rely on New Start etc would rise up against all authority.
If the banks want bail ins – look to those with a great heap of money in their accounts, or to stocks and shares and leave the little people alone. Failure to do so will see these little people as a force to be reckoned with. Most Pensioners have worked hard all of their lives and want a comfortable end to that life. We may be old but by hell you don’t want to piss us off because other family will come to their aid and they will be the ones to watch.
Do not worry Barb, the people you mention would be last on the list to bail in from, because most live from fortnight to fort night and have very little savings to loose. If their bank was in trouble the bail in would start at the over 250k limit. Then if the guarantee of deposit fund did not have enough funds to cover the total amount they would work down from 250k till they did. Plenty of time to change to another bank account with Center link. Center link would stop depositing to a bank if it came out they may bail in. The problem you may have is the people who pay the taxes have no money to pay them. And gov is forced to borrow money to pay entitlements. Also the self funded will be in the boat with you wanting a pension . Bad for us all.
Well said, Barb.My husband and I are ‘little people ‘ , the pension being our only income.
There will be mayhem and murder on the streets…the majority will rise up!
Perhaps the govt have bail in in mind , hence all the military action in some of our towns, plus 15 minute cities?
I get the feeling that the WEF/UN etc are getting desperate and trying to push things through very quickly.e.g. The Voice, Digital Id.
We must stop both!
When was Lehman Bros etcetera errr I think it was 2008.
There is a guy who created fabulous ways through all that. I forget his name..
Jeff ……..
Why doesn’t insurance pay up 👆 in these situations? That industry is a racket.
Insurance/ Reinsurance
They get fatter and fatter, via making it near on impossible to get decent returns on any claim…
Why do banks not compensate clients, when they have systems outages.
How do targeted individuals keep having their accounts , shut off, sometimes accounts removed from electronic banking.
Why are credit card companies allowed to charge a huge margin, above cost of borrowing.
They are pretty much VIRTUAL , so no great overheads, very wealthy executives though… Is there any pressure on them to pay back to the Australian everyday human beings, the excessive margin..
I delved into this at uni in err 2014, I think it was… as part of Strategic Finance… I don’t have those notes anymore.
Maybe your crews have already looked at the anomalies in credi cards.
They badge themselves under banking brands, yet they are separate multinational organisations.
Food for thought.
Thanks again
One 1⃣ NATION
ALL CREWS
🙇 🎾 LOVE WINS 💋
They hand out cards willy nilly to every Tom ,Dick and Harry who wants one. Lots never pay them so the bank makes us who do, pay it instead. They take the profits we take any loss with higher rates. They are not twisting our arms to use their credit. To many people use cards to fill gaps instead of their proper use as an emergency short term lone for say a burned out deep freezer. In the old days you had hirer purchase ,that was worse. Most emergency purchases can be done on interest free over couple years now ,so do not need a card anymore.
Well said, Barb.My husband and I are ‘little people ‘ , the pension being our only income.
There will be mayhem and murder on the streets…the majority will rise up!
Perhaps the govt have bail in in mind , hence all the military action in some of our towns, plus 15 minute cities?
I get the feeling that the WEF/UN etc are getting desperate and trying to push things through very quickly.e.g. The Voice, Digital Id.
We must stop both!