Monday, April 14, 2014

What is a Bank Bail-in?

Put simply... if your bank goes bust, a percentage of your deposits or savings could be taken from you to help ensure the solvency of the bank.

Most people don't know it, but a bank depositor (someone with a checking or savings account) is an unsecured creditor to the bank.

If a bank or brokerage goes bust, unsecured depositors are some of the last creditors in line with very little sway in legal proceedings (think MF Global account holders).

Bank bail-ins have already occurred in countries like Cyprus.

Listen to what experts Mike Maloney and Rick Rule (of Sprott Global) had to say when asked...

- Source: James Anderson of Mike Maloney's Gold Silver.com