U.S. Bail-Ins - Fed Vice Chair Fischer Says "Preparing A
Proposal"
Today’s AM fix was USD 1,311.00, EUR 982.76 and GBP 781.75 per ounce.
Yesterday’s AM fix was USD 1,308.25, EUR 977.33 and GBP 779.37 per ounce.
Yesterday’s AM fix was USD 1,308.25, EUR 977.33 and GBP 779.37 per ounce.
Gold fell $2.30 yesterday to $1,309.10/oz and silver rose $0.07 or 0.35%
to $20.04/oz.
Gold popped higher today as equities fell on news that a Russian aid
convoy is heading to Ukraine and on signs that the new deepening tensions and
risk of conflict with Russia is hurting confidence in the euro zone economy.
The Zew think tank in Germany reported a drop in investor confidence to
its lowest level since 2012 due to the risk that economic sanctions pose to fragile
economies. This helped push European shares and the euro lower, while boosting
German bunds and gold.
Gold is marginally higher in London this morning after gold in Singapore fell to test $1,305/oz overnight again. Futures trading volume was 36% below the average for the past 100 days this morning as Wall Street remains on vacation.
Spot gold was up 0.3% at $1,312.70/oz at 1230 GMT, while U.S. gold
futures for December delivery were up $1.80/oz at $1,312.30.
Silver for immediate delivery rose 0.1% to $20.18 an ounce. Spot
platinum was flat at $1,473.63 an ounce, while palladium edged closer to multi
year nominal highs and was 0.5% higher at $882 an ounce.
Russia said a convoy of 280 trucks had left for Ukraine today carrying
humanitarian aid. U.S., EU and NATO officials warned that the help may be a
pretext for a Russian invasion.
Gold has climbed about 9% this year, mostly on geopolitical tensions
between the West and Russia over Ukraine, and violence in the Middle East. Gold
is seen as a safe haven investment to hedge riskier assets such as equities.
Many market participants are surprised that gold has not seen greater
gains and is flat since February. Given the degree of geopolitical uncertainty
and the fact that this uncertainty is likely to disappear anytime soon, gold
should have seen greater gains.
U.S. Preparing
Bank Bail-Ins - Fed Vice Chair Fischer
Federal Reserve Vice Chairman Stanley Fischer delivered his first speech on the U.S. and global economy in Stockholm, Sweden yesterday.
Federal Reserve Vice Chairman Stanley Fischer delivered his first speech on the U.S. and global economy in Stockholm, Sweden yesterday.
Fischer headed Israel’s central bank from 2005 through 2013 and is now
number two at the Federal Reserve in the U.S. after Janet Yellen.
In a speech entitled, The Great Recession:
Moving Ahead, given at an event sponsored by the Swedish
Ministry of Finance, Fischer said that the economic recovery has been and
remains “disappointing.”
“The recession that began in the United States in December 2007 ended in
June 2009. But the Great Recession is a near-worldwide phenomenon, with the
consequences of which many advanced economies--among them Sweden--continue to
struggle. Its depth and breadth appear to have changed the economic environment
in many ways and to have left the road ahead unclear.”
Speaking about the steps that have been taken internationally in order
to “strengthen the financial system” and to reduce the “probability of future
financial crisis,” Fischer said that the U.S. was preparing proposals for bank
bail-ins for “systemically important banks.”
“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.
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.”
Fischer’s comments that the U.S. is “preparing a proposal” for bail-ins
is at odds with Federal Deposit Insurance Corporation (FDIC) and Bank of
England officials who have said that bail-in legislation could be used today.
The U.S. already has in place plans for bail-ins in
the event of banks failing. Indeed, the U.S. has conducted simulation exercises with the U.K. in 2013 and again this year.
On October 12 2013, Art Murton, the FDIC official in charge of planning for resolutions, and the Bank of
England’s Deputy Governor Paul Tucker, both confirmed that the U.S. system is
ready to handle a big-bank collapse.
The Bank of England’s Tucker, who has worked with U.S. regulators on the
cross-border hurdles to taking down an international bank said that “U.S. authorities could do it today -- and I mean today.”
There is speculation that were Yellen to retire
early Fischer would be anointed as the new Federal
Reserve Chairman.
Fischer who previously was chief economist at the World Bank, also makes
it clear that he expects ultra loose monetary policies to continue in the U.S.
which will be bullish for gold and silver.
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Gonna Retire:So when the 14th
comes and the west lose control of the gold manipulation, derivatives will
collapse and take the corrupt banks down with them and the new system will be
safe from bail ins. Is this what they are waiting for before the GCR is let go?
Out of the matrix:Connect the dots if you will.
You know about the bank problems, correct? Well the banks were and are selling
worthless " commercial paper" (
cede, and dtcc) hold the certificates to the worthless commercial paper, (
titles, birth documents, stocks, bonds, etc.) For example, if you have "
stocks and bonds" you need to hold the actual paper or you own
NOTHING except ' blue sky'.
All fraud that is conceived in
fraud will fall like stock market fraud. All government fraud will fall, Fraud
is fraud is fraud. That is what this shift is all about.
Your assignment for today is write an essay on " COMMERCIAL PAPER"
Cyfer:FYI - a Bail-in occurs when the borrower's
creditors are forced to bear some of the burden by having a portion of their
debt written off. For example, bondholders in Cyprus banks and depositors with
more than 100,000 euros in their accounts were forced to write-off a portion of
their holdings.
Publicado por Dinaresgurus.blogspot.com FORO DINAR GURUS en 12:2
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