Aiden said;
But in Australia your money is safe, though banks here are unlikely to fail anyway.

Fine keep saying that that that that !
Anyway from what I have been reading some overseas banks have been
unloading their debts (which includes deposits) on to derivative
companies. So when it all goes ts up the bank just says oh please
go & see so & so derivative company, not ours anymore.

Of course I do not know if local banks have done that.
I suspect that they are relying on the $250k guarentee.
If the government can buy enough plastic it could just print enough notes to cover it.

Aiden, it did not matter in Cyprus that it was bond holders, they
took the depositors money to repay the Greek bond holders.
Actually I think they would take anything in sight.

Anyway to sum up as far as the likes of me are concerned we could be skimmed.

It's all good emotional stuff, this banking business, ain't it.

It is vitally important not to let facts interfere with a good bank-bashing tale. Or if you must use facts, make sure you don't understand them - that way you can be emotional, and wrong, at the same time.

>>...a man in Italy who suicided after his $100,000 of savings were taken to save the bank.<<

Actual details of the "savings" are scant online. But it would appear that he invested in a bond that was "subordinated debt", and therefore riskier than other forms of investment. Under the terms of the arrangement he made with the Bank, his money would only be paid back after other debtors had been paid. What is missing is the extent of the risk that he took - i.e. what was the face value of the bond, what was the interest coupon etc. Most people with $100,000 to invest take note of the level of risk that they are undertaking.

I suspect that there will be an investigation into the circumstances of the sale of the bond - who sold it, what did they tell him etc.

So unless your savings are similarly invested in junk, Bazz, I suggest that you stop worrying, have a nice cup of tea and put your feet up.

Meanwhile, try not to write stuff like this.

>>Anyway from what I have been reading some overseas banks have been
unloading their debts (which includes deposits) on to derivative
companies. So when it all goes ts up the bank just says oh please
go & see so & so derivative company, not ours anymore.<<

Read through it again, and tell me who are the "some overseas banks", and who are the "derivative companies" that you refer to. Otherwise, we might just get the impression that you are passing on sensationalist conspiracy-nut stories, just for the fun of it.

Baz You need to keep away from conspiracy sites, we do not need mass panic.

Aiden & Pericles

Thanks for your comments which I think hit the mark on these blogs.

This is why I try to be careful about making concrete statements and like to attribute any such comments to the people who first made them or reference where I found the information. I also said that "This may be wrong information" and "I understand that......." Which hopefully lets me off your hook !

Yes, well I for one have read the document that Australia signed up
for courtesy Wayne Swan.
It is not restricted to deposits or bonds.
No doubt there is the usual hierarchy of assets.
So far as I know Bail Ins have been applied in Cyprus, Portugal,
Spain and Italy.
It is an IMF document that establishes the Financial Stability Board.
It appears to be an attempt to establish an orderly legal process for
the seizure of funds held by the banks customers.

The problem with trying to wash it all away by saying it is all a
conspiracy web site production is that even the Bank of England
Governor has written about his reservations on the scheme.
Before you turn around and ask for sources, I gave them a year or two
ago so go back on here and search yourself or try google.