Federal Budget Implements The Financial Stability Board’s Cyprus Styled “Bail In” Program For Banks

I did a report that highlighted how the federal government’s 2013 budget. Is really nothing more than a budget to bring Canada more inline with the United Nations Agenda 21 program.

But now after reading a story titled: Cyprus-Style “Bail-Ins” Are Proposed In The New 2013 Canadian Government Budget!. I have quickly realized that this 2013 budget goes much, much further then just that!

On page 144 and 145 of the budget (which can be read in full Here) it states:

Establishing a Risk Management Framework for Domestic Systemically Important Banks Economic Action Plan 2013 will implement a comprehensive risk management framework for Canada’s systemically important banks.
Canada’s large banks are a source of strength for the Canadian economy.

Our large banks have become increasingly successful in international markets, creating jobs at home. The Government also recognizes the need to manage the risks associated with systemically important banks — those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts
on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable.

The Government intends to implement a comprehensive risk management framework for Canada’s systemically important banks. This framework will be consistent with reforms in other countries and key international standards, such as the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions, and will work alongside the existing Canadian regulatory capital regime.
The risk management framework will include the following elements:

- Systemically important banks will face a higher capital requirement, as determined by the Superintendent of Financial Institutions.

- The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected
institutions, investors and other market participants.

- Systemically important banks will continue to be subject to existing risk management requirements, including
enhanced supervision and recovery and resolution plans.

This new guideline for Canadian banks, falls right in line with what is happening in Cyprus. Which is the most visible at this time, but not the first to have it happen.

“Cyprus is the first country to have received this treatment, but it isn’t the first case of an imposed bail-in. A precedent was set by Denmark, when it imposed losses on senior creditors at tiny Amagerbanken and Fjordbank Mors in 2011. Earlier this year the Dutch government took a much bigger step when it rescued SNS Reaal, a troubled real estate lender, and in doing so, expropriated its subordinated bondholders to recoup about $1.3 billion. At the time, the Dutch Finance Minister Jeroen Dijsselbloem suggested that the government even considered confiscating SNS’s senior bonds, but decided against doing so because of fears of the effect this might have on stock and bondholders of other big Dutch lenders in better health.

Dijsselbloem recently took over as head of the Eurogroup, which brings together top finance officials from the 17 nations that make up the euro zone, and his ambiguous remarks this week about whether the Cyprus bail-in was exceptional or would be the new European norm spooked markets and sent European bank stocks tumbling just hours after that accord was finalized.

“What we’ve done last night is what I call pushing back the risks,” Dijsselbloem told Reuters. Asked what the new approach meant for euro-zone countries with highly leveraged banking sectors, such as Luxembourg and Malta, and for other countries with banking problems like Slovenia, Dijsselbloem said they would have to shrink banks down. “It means deal with it before you get in trouble. Strengthen your banks, fix your balance sheets and realize that if a bank gets in trouble, the response will no longer automatically be that we’ll come and take away your problem.”
Source

The financial stability board (FSB) is working to implement this “Bail-in” policy of robbing the tax payers to pay for the banks mistakes, worldwide! It should also surprise no one that Canada is getting on board with this plan. The Bank of Canada governor, and soon to be Bank of England governor. Mark Carney (or as Max Keiser calls him “Mark Carnage”) is also the current head of the financial stability board.t
Canadians need to understand that between the agenda 21 and “bail-in” aspects of this budget, every aspect of our nation is quickly being handed over to the corporate global government. A government that has no problem stealing your money right out of your banks account. Has no problem taking your land. Lets face it, no problem taking everything that you may have.

Time is running out and The need to rise up and take our nation back has never been greater!