This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bail-Ins Are Fraudulent

But they wouldn't obtain those shares at the current share price of the financial institution (as was done with the Cyprus Steal). Obviously they would have to obtain their shares at a rate equal to the cheapest options or warrants possessed by any current executive or officer within the bank. One could never allow the Gamblers who perpetrated the robbery from their own depositors to be allowed to create new shares for themselves at a better price than their victims.

If bank executives decided that such a price was "too generous" (for the Little People), that's no problem. Simply declare that any/all cheaply-priced warrants and options held by all officers and senior executives are immediately null-and-void -- up to whatever price-level those executives would be comfortable issuing shares to their depositors.

Speaking of the executives and officers who perpetrated the bank robbery to ward-off the immediate bankruptcy of their own bank; obviously we need "more provisions" to govern how they are rewarded for their conduct.

It would be illegal to pay-out any "bonus" or non-salary incentive to any officer/executive of the bank for some suitable period after the bail-in takes place. It would be illegal to award any bank executive any raise in pay, until some time after the bank has become genuinely profitable for consecutive quarters.

Naturally all severance packages for those same executives would also instantly become null-and-void. No golden parachutes for gamblers who bankrupt their own companies to such an extreme degree.

To those bank apologists (i.e. the mainstream media) who would argue that such minimal justice would make it impossible for these banks to "retain and attract" competent personnel, the retort is obvious. To manage to bankrupt themselves to such an outrageous degree (despite receiving preferential treatment from government every day of their existence) proves quite conclusively that these fraud-factories never had any "competent personnel" to begin with -- at least not in senior management.

Handing out carrots to bankers in the hope that these fraud-factories would suddenly begin hiring competent personnel in senior management is not a "luxury" to which these welfare recipients are entitled. Show me a country proposing to perpetrate their own "bail-ins" with similar provisions in place, and I'll show you a government which hasn't entirely forgotten the rule of law.

I'm not holding my breath.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs