SOS

         Major commercial banks continue to gamble in a whacky 21^st Century financial arena that nobody understands, least of all them.   Instead of shutting risky practices down, regulators are focusing on how to shut mismanaged banks down.  A paper co-authored by the FDIC and the Bank of England titled “Resolving Globally Active, Systemically Important, Financial Institutions” makes that abundantly clear.  An excerpt from the paper is shown below.

         In view of this, MacDougal recommends that subscribers sell all equity holdings in commercial banks and redeploy substantial savings and checking account balances somewhere else.  Your money is no longer safe in a major commercial bank.  Take the successful raid on wealth in Cyprus, where reports tell us the second largest bank on the island is getting shuttered and whales are taking a 40% haircut, as a chilling harbinger of blindsides to come.  Pour yourself an alcoholic beverage, and take a gander at the excerpt:

         “Under the strategies currently being developed by the U.S. and the U.K., the resolution authority could intervene at the top of the group. Culpable senior management of the parent and operating businesses would be removed, and losses would be apportioned to shareholders and unsecured creditors. In all likelihood, shareholders would lose all value and unsecured creditors should thus expect that their claims would be written down to reflect any losses that shareholders did not cover. Under both the U.S. and U.K. approaches, legal safeguards ensure that creditors recover no less than they would under insolvency.” (Note: “unsecured creditors” means depositors.)

         “It should be stressed that the application of such a strategy can be achieved only within a legislative framework that provides authorities with key resolution powers. The FSB Key Attributes have established a crucial framework for the implementation of an effective set of resolution powers and practices into national regimes. In the U.S., these powers had already become available under the Dodd-Frank Act. In the U.K., the additional powers needed to enhance the existing resolution framework established under the Banking Act 2009 (the Banking Act) are expected to be fully provided by the European Commission’s proposals for a European Union Recovery and Resolution Directive (RRD) and through the domestic reforms that implement the recommendations."

My Way

         MacDougal Irving has gotten published outside the MacDougal Post, in the internet publication, Seeking Alpha, to be specific, and the man’s too full of himself right now to risk telling anybody hisself, so we’re doing it for him.  Fool says he still doesn’t care about inanities like recognition or reaching his public.  Just that this particular author loves writing and has done so all his life – even when absolutely nobody was reading the stuff besides him.

         Here’s the link to what the man’s been singing around here all damn day and night:

http://www.youtube.com/watch?v=LZA36YIu2yU

         And here's the precious link to that historically irrelevant (he made us put that in) first published piece; editor’s notice said the accepted submission would be included in today’s macro publication, whatever that is, and we can't wait to see how many readers are going to skewer his exposed butt in the comments section, or how bad; Goofy says he doesn’t care about the skewerings either:

http://seekingalpha.com/article/1293771-stock-options-or-pilfered-savings-maybe-this-cyprus-thing-is-a-copycat-raid-on-wealth?v=1363899636&source=tracking

Is Cyprus Joining the Party?

         With market gurus everywhere acting blindsided by the Cyprus Government’s decision to consider taxing bank savings accounts (at rates of 6.7% on balances under 100 thousand Euros and 9.9% on those over this level), most pundits screaming, “where did that come from?”,  MacDougal Post subscribers seem to stand alone in understanding that corporate elites in this country have been skimming their shareholders’ savings via the “stock option” racket since January 1, 1981.

         Turning the magic of long term compounding against us, systematic pilferage of  our savings each and every year can skim the whole amount of beginning shareholder wealth into the hired help's pockets inside a few decades. Apparently, the mathematically inclined in Cyprus’ Government have noticed.

         And one-upped them.  At rates around 9.9%, Cyprus Feds would be contemplating time frames that are well within a decade.  In less than 10 years, today's balance in a citizen's bank account would be seized in its entirety under that kind of grand larceny.

         People save to better their prospects over a long period of time.  What we're up against here is starting to look like the absolute destruction of that future by a ravaging pack of wild-eyed nihilists.

Securities and Excuses Says Public Corporations Are Owned by the Hired Help

       Reuters reports that regulatory hotshots at the Securities and Excuses Commission (SEC) have told the hired help running four of our too-big-to-jail, quasi-nationalized banks that the hired help at a complete disgrace of a bank doesn’t have to put stockholder proposals to a stockholder vote at a complete disgrace of a bank when banking disgraces have gotten so complete with the hired help at said institution that stockholders want to break up that complete disgrace of a bank and end all the misbegotten financial suffering.

       Apparently the help ran to bought-and-paid-for Washington again just like they always do whenever anybody comes up with an authentic enforcement action to put a stop to their criminal activities.

       Dickheads.  Bank dickheads.  SEC dickheads.  When is somebody going to come along and put all the dickheads in jail.  The lot of them.

       Dickheads.

       Whatever, here’s your damn link:

http://www.reuters.com/article/2013/03/14/banks-sec-proxy-idUSL1N0C5HED20130314