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Originally Posted by Ajax
Here in NZ we have a policy called the Open Bank Resolution (OBR) that kicks in when a major bank is about to fail. Essentially what happens is that every customer's savings balance gets a permanent haircut in order to prop up the bank and keep it going. This was brought into play after South Canterbury Finance collapsed in 2010 and taxpayers had to bail out investors to the tune of $NZ1.6 billion. The government of the time was not keen for that to happen on a larger scale with one of the major banks, so they shifted the burden to customers. It's hard to say whether OBR is a good idea but it's better than a total bank failure where customers lose almost everything. |
Its only baby boomers that are cash positive, and they wont be needing their money.