Re: Chinese banks starting to fail
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Looks like the chinese banks are being protected from a run again.
Customers have been told that they are actually holders of investment products and can not withdraw their funds.
Hey..that's what they call BAIL IN legislation here.
We used to have bank bail outs by Govt but now have bail in by way of depositors funds.
The legislation says that depositors can be compensated by "any other financial instrument" if a bank fails.
That means when your bank starts to go belly up they might offer you shares in the bank instead of your money...this happens before the Govt $250k guarantee gets invoked.
Cool..shares in a failing bank...
Here is a commentary on what has happened in China.
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