Walk the World / Digital Finance Analytics video follow up on bank bail-in clauses.
https://youtu.be/NN2PI2lEBwY
Sorry for the unpolished, stuttering delivery. But this banking nerd does his homework so we don't have to.
In summary:
- bank bail-in is only something banks can execute on if it is a specific clause in the contract / terms and conditions when a bank account is created
- The government advisors assure politicians that no bank account T&Cs currently include such a clause
- Politicians therefore can honestly say "Your bank accounts will not get a haircut because your contract with the bank doesnt allow it."
but wait... there's this:
- Within almost every bank account T&C's there is a clause that says the bank can change the T&C's at any time.
- They don't have to make any announcements prior to changing the T&Cs
- They don't have to negotiate with depositors about the new T&Cs
- the new T&C's may apply retroactively
- the new T&C's may include clauses that allow for bank account haircuts, limiting cash withdrawal, and any kind of banking fuckery they can dream up.
- It's all "legal"