Can someone pls explain what a Bank 'Bail-in' is?

[fourandsixpants]

read comments like below, that follow an article:

The thing that worries me is the recent G20 undertaking to support banks with “bail-ins”. Should people with significant funds in banks remove them pre-emptively?

.......................................................................................................................................................................

Just turn it into equity now instead of waiting for teh bail-in. What could possible go wrong?.......etc etc

..........................................................................................................................................................................

I’ve diversified to several banks to make sure I don’t overrun the government deposit guarantee. In addition, I reckon if there is a bail in, the precious metals will take a moon shot...................etc etc

 http://www.macrobusiness.com.au/2015/01/bill-gross-goes-all-out-bear-for-2015/

.................................................................................................................................................................................

Thanks in advance

[jean2579]

---

@paintsew007 wrote:

....so, you mean if you have any money in a savings account at a major bank and this bank folds then it will be made legal for the bank to keep your money to pay for it to stay open? Stay open for what purpose if the clients no longer have any money there?!

---

Looks like our Grandparents had the right idea.

Stick it under the mattress or a floorboard.

Just as safe.

[lloydslights]

Yesterday, I received notice of Term Deposit Changes:

"Our new terms and conditions require you to give 31 days notice if you want to take money out from your Term Deposit before it reaches the maturity date."

"This change is in response to new regulations that are aimed at strengthening the banking industry."

I too, Jean, was thinking about the mattress scenario.

DEB

[freddie*rooster]

Wow DEB is that with one of the big Banks/Building Societies?

[fourandsixpants]

ref "This change is in response to new regulations that are aimed at strengthening the banking industry."

Well certainly strengthens this banks position in holding onto everyone elses funds.

Guess the 'run' has started then, at this bank anyway

[lloydslights]

Quoted from Commonwealth.  

NAB is similar.

DEB

[freddie*rooster]

Wow thanks for that we haven't received any notification from the Commonwealth at this time.

[lloydslights]

Commonwealth notification "applies to renewals and new accounts from 8 December, 2014."

DEB

[freddie*rooster]

Maturity is Februrary 2015.