Fed Vice Chairman Warns: Your Bank May Seize Your Money to Recapitalize Itself
This is a Paragraph out of the Fed Meeting Minutes .... Notice he says that a "" INSOLVENT BANK """ can take your Money to RECAPITALIZE Itself ...... How do we Celebrate that kind of LABOR DAY ?????
Additional steps have been taken in some countries. For example, in the United States, capital ratios and liquidity buffers at the largest banks are up considerably, and their reliance on short-term wholesale funding has declined considerably. Work on the use of the resolution mechanisms set out in the Dodd-Frank Act, based on the principle of a single point of entry--though less advanced than the work on capital and liquidity ratios--holds the promise of making it possible to resolve banks in difficulty at no direct cost to the taxpayer. ( pay attention too this sentence ; " As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding--this cushion is known as a "gone concern" buffer ". ) http://www.federalreserve.gov/newsevents/speech/fischer20140811a.htm