Ottawa needs to guarantee Cyprus can’t happen here

The wording on pages 144 and 145 of Economic Action Plan 2013, which at this point is the formal statement of the federal

The wording on pages 144 and 145 of Economic Action Plan 2013, which at this point is the formal statement of the federal government, clearly can be interpreted to mean deposits in banks can be employed to “bail in” the banks.

Deposits are bank liabilities. As such, by current wording in the Economic Action Plan, they could be employed to return banks “… to viability through the very rapid conversion of certain bank liabilities into regulatory capital.”

On the one hand there are those expressing very firm conviction that confiscating bank deposits is the long planned intent, as in the globalresearch.ca article “The confiscation of bank savings to save the banks – The diabolical bank bail-in proposal.”

On the other, in the Business News Network article “Ottawa clears up confusion over bank bail-in,” the government of Canada spokesperson just as firmly states there is no such intent and no threat is posed to depositors funds.

As a result of the actions taken in Cyprus and speculation of similar action, absolute clarity is necessary for confidence to exist.

The Ottawa Citizen article “No, Canada is not the next Cyprus,” while true to its heading, argues “… it would be wise for the government to explain precisely what it intends, what is likely and what is possible.”

Mistrust exists. The government must state clearly and unequivocally that bank deposits are not among the bank liabilities to be included in its “bail in” plans – and through a formal statement in law excluding them, not a statement made by Finance Minister Jim Flaherty’s press secretary Kathleen Perchaluk.

Joe Hueglin

Niagara Falls, Ontario