the Voice of
The Communist League of Revolutionary Workers–Internationalist
“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx
Apr 1, 2013
The banks of Cyprus are being “rescued” by taking depositors’ savings away from depositors and using those funds to bail out the banks! Those banks had encouraged everyone to think that banks were safe places to keep money.
In this country we are also told that banks are safe, because deposits are insured by the FDIC. Well, until the FDIC decides otherwise, that is.
If U.S. banks need an emergency bailout, there appears to be at least one legal loophole available to grab depositors’ money. The FDIC can order that deposits be converted to equity in the bank. Presto! Equity is not insured, and disappears when a failing bank needs rescuing.
Funny how insecure this so-called “security system” turned out to be!