Australians told 'trust me, your money is safe', but many fear bank deposits are at risk

The fear about legislative loopholes initially surfaced following the GFC when a number of concerned individuals with links to the far-right political party Citizens Electoral Council started writing letters to their local MPs.

This legislation gave APRA the power to allow a bail-in financial instrument known as "hybrid securities", a financial instrument described at the time by former ASIC chairman Greg Medcraft as "a ticking time bomb". It said it did "not consider that the bill would allow the 'bail-in' of Australians' savings and deposits" since "depositors are protected both by the FCS and under the Banking Act".Now fast-forward to 2020, with fears of a financial meltdown heightened as Australians lose their jobs, JobKeeper payments about to taper off and bank loan repayment holidays coming to an end.

NassimKhadem JohnRHewson speaks out!

Oh please this is absolute bullshit! ABC News is turning into crap

When the end comes, all money will be considered worthless, so we’ll all be in the same boat (and free).

Never trust the banks they are criminals as proved by the royal commission.Why were no CEOS jailed for their criminal activities?

The ABC’s behaviour during the past 14 weeks has being deplorable. It continues to do so .... Please read this article “ carefully “ Fear is so important...

thank you for this terrifying article.. i thought the Australian government guaranteed the safety of $250k. Now i'm not sure what to think.

Another beat-up from the ABC in decline. Why no quote sought from the ABA?

It's simple: passing the bill shows that the money I have in the bank is safe. Oppose the bill and you are coming right out and saying my money is not safe & can be taken by the bank to save itself. In opposing this bill is JoshFrydenberg TRYING to start a run on the banks?

iwantmynbn This is a seriously irresponsible headline!

NassimKhadem Yes, I would take always take advice from a suburban solicitor on financial legislation....NOT! The Banking Act protects the interest of depositors at the expense of all other stakeholders. The story is bunk I’m.

Not good. Especially if a vaccine is not found for a while. I exist only on savings and a small pension. Don't think Banks are going to care about implementing a 'bail-in' - especially if their equity is severely reduced. The Govt. as per usual won't help.

Don't worry about it........If the banks colapsed overnight we are all gone.

The Australian government has guaranteed accounts of p to a million dollars since the GFC.

So why don't you tell them the truth

CitizensPartyAU has been warning about this for some time.

adamseconomics

When Pauline Hanson and Malcom Roberts brought this motion in 2018 to oppose Bail In laws, I asked JJJ’s Hack program to bring this up on their show... no response. Guess people’s life savings being stolen is not as trendy as some issues being thrown around these days...

Fiat currency system....... Need to go to gold backed currency.

PCribbett

Well done Martin and co. Shows that your hard earned deposits could be bailed in and worthless well before the ADI protection kicks in.

Banks are horrible but where else can I keep my money? I also have to show the bank that I have money saved in the bank to get a house, even if I have X amount in cash saved.

Crikey!

If deposits really are as safe as Government, Treasury and the ABA claim they are; what is the harm in passing a simple bill to provide more clarity in the law? Me think thou does protest too much.

we r getting puny interest n they could go under water overnight There has to be a price on risk as they r charging biz 5.5%

I guess that's why they say 'give a man a gun he'll rob a bank, give a man a bank and he'll rob everyone'

So the Bank is now good for what exactly, if your not a shareholder or tied to a mortgage...

adamseconomics DFA_Analyst shoot_da_spruik glad this is going mainstream. Thanks guys! I’m sure this is because of you 👏🏻

Retail bank deposits (your savings) can be confiscated by the bank to save itself. The Banking Act 1959, subsection 11CAB(1). If the banks start failing they can grab your cash on their way down!!

It is happening in Lebanon as we speak. $150 B of deposits were wiped out. Lebanese always claimed they have a strong too good to fail banking sector!! The comparison with Cyprus is not so fair because Cyprus do not control its monetary policy.

What bs! Pure click bait.

more Fear to help numb us all, Pull your cash out than get caught with cashless transactions bunker down buy trade-able supplies

I contacted the CBA seeking clarification on this very matter. Zero response! Why all of Australia isn’t up in arms over this has me stumped!

Retail bank deposits (your savings) can be confiscated by the bank to save itself. The Banking Act 1959, subsection 11CAB(1). If the banks start failing they can garb your cash on their way down!!

And you wonder why people are hoarding cash... as this government makes changes that now put your deposits at risk.... so are banks safe... try and get a withdrawal of $20,000 your treated as a criminal and grilled seems strange

If that's happen, you don't want to see what people will do. Riots as in US will be walking in the park compared to this.

They are. The government passed bail-in laws so the banks can just take your money if they become insolvent. Before they receive public funds. I personally don't think either is a good idea. Free market after all 😉

Then our great country has gone to hell

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