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JAPAN: WE WIll FORCE BANK LOSSES ON INVESTORS VIA BAIL-INS


We now know that ‘muddle through’ is over, and just as we noted here “there may only be painful ways out of this crisis” as we evidenced by Europe’s attack on Cypriot depositors.

With the pillars of Abenomics starting to crumble, it seems plans are afoot to prepare for the bank failures that will come from a BoJ-inspired out-of-control bond market.

As Nikkei reports, Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in.”

http://finance.yahoo.com/news/japan-adopt-bail-ins-force-181947896.html

The FSA report also notes that Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases.

So not only will Japanese banks suffer VaR shock-driven needs to reduce JGB holdings but a weaker deposit base will further exacerbate the de-leveraging.

http://www.zerohedge.com/news/2013-05-19/toyota-pulls-bond-deal-due-soaring-yields-japanese-var-shock-feedback-loop-back

Land Of The Rising Bail In: Deposit Confiscation Coming To Japan Next

We now know that ‘muddle through’ is over, and just as we noted here “there may only be painful ways out of this crisis” as we evidenced by Europe’s attack on Cypriot depositors. With the pillars of Abenomics starting to crumble, it seems plans are afoot to prepare for the bank failures that will come from a BoJ-inspired out-of-control bond market.

As Nikkei reports, Japan’s Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a “bail-in.”

http://www.zerohedge.com/news/2013-06-11/land-rising-bail-deposit-confiscation-coming-japan-next

JAPAN’S NIKKEI 225 FALLS 20% FROM MAY 22 HIGH
JAPAN’S TOPIX INDEX FALLS AS MUCH AS 5.1%
NIKKEI 225 FALLS 6%, EXTENDING LOSSES

http://www.zerohedge.com/news/2013-06-12/monkeyhammered-nikkei-plummets-6-risk-exodus

Japan’s Sovereign Debt to default within 5 years.

Pulling out all stops to circumvent the greatest economic disaster ever.

Watch the details of coming crisis here:

Why Things Will Get Worse – Much Worse

The economy is being destroyed, deliberately, by insane economic policies.

Incentives to work are being eliminated by punishing work.

At the same time rewards are increasing for not working.

Not surprisingly we get less of what we penalize (work) and more of what we subsidize (non-work).

http://www.zerohedge.com/news/2013-06-12/guest-post-why-things-will-get-worse-much-worse

DB

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