Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697646587161.pdf (Australia)
Committee Secretary Economics Legislation Committee Department of the Senate PO Box 6100 Parliament House CANBERRA ACT 2600 AUSTRALIA 08 July 2020 Dear Sir/ Madame Submission: Banking Amendment (Deposits) Bill 2020 The 2018 Bill that snuck through the Parliament with only 8 Senators in the chamber and knowing some would not agree (One Nation) with loosely worded legislation that will allow a future government or banks to bail in depositors money rather than government bailout or let banks fail.
The Banks are not entitled to be bailed out by peoples bank savings deposits.

Rather if the Bank(s) cannot survive on their own the Government should Nationalise them for the common good (they are a business after all - why not bail everybody out ?

not feasible of course) and have a government run bank(s) instead for ordinary saving and house mortgages and commercial banking lending to small and medium business enterprises and farms at low rates of interest and carry some of the distressed borrowers.
We need jobs and more jobs not government handouts so people can continue to pay their mortgages .

Also a government bank could and should invest in Australian Infrastructure and Public or community housing- a lot of money.

What about some big water projects such as the Bradfield Scheme to turn coastal rivers back inland in Queensland and NSW and WA.

Think more Snowy Schemes.

Australia has lot of agricultural potential as long as we have water not to mention the environmental benefits.
What about High speed rail Sydney Brisbane to open up development of more regional towns and a boosting local manufacturing and processing agricultural business.

The Government could then create its own credit rather than borrow from overseas for infrastructure and Public housing which will be much needed in the aftermath of COVID 19 and job losses.

Many people in their fifties and sixties will not recover economically and will need community housing.
Not to mention the current high cost of houses and flats or rent.

This approach has been used before successfully in say the USA in the 1930's and 1940's and Australia also.

We need Glass Steagall type legislation -The speculative investment banking should then be split off and take their loses or gains.
There is a significant probability that Banks will become distressed and insolvent if the property bubble bursts later this year and next year and that means they are coming for your savings deposits to bail them out.

Likely your cash will be gone forever or you might receive bank shares which might or might not ever recover in value or maybe they only take 50% of your money.

The government's 250 K savings guarantee was only ever promised because they did not believe it would ever be required.
If you open your eyes the signs are everywhere.

Saving will be bailed in and you will only be able to withdraw small weekly amounts Eg Cyprus.

Also restrictions an bank collapses in Italy.

Already you are limited what cash you can draw in day in Australia.
Australia as a member of G20 has signed protocols in which Financial Stability Board (FSB) at Bank of International Settlements (BIS) to develop policies to resolve future banking crisis- They have developed this bail in policy rather than Glass Steagall style legislation.

It is expected for Australia to comply.


Banking Amendment (Deposits) Bill 2020Submission 116 Other Nations all have bail in powers eg USA, UK, EU, Canada and New Zealand which has explicit deposit bail in policy called Open Bank Resolution where the Major banks are all subsidiaries of Australia's big banks.
The 2017 Crisis Resolution Bill, now law empowers the bank regulator APRA to order Tier 1 and Tier 2 capital securities which include bail in bonds in their terms and conditions known as contingent convertible (co-co) or bail in bonds; however Section 11 CAA defines that conversion and write off provisions relate to Tier 1 and Tier 2 capital or any other instrument.

Intending without saying directly savings deposits.
Take a look at the small print when you open an account you will see the banks can change the terms and conditions to allow bail in under the 2018 law as it now stands.

You can see that the Government knows there is significant chance that some of our big banks possibly all will come under financial stress requiring bail in or government support or both in the next 18 months and the effects for many years after that.
Not only that private banks are pushing for cashless system and possible negative interest rates and ability to control our economy and what investments it thinks Ok.

This is not for the common good of the people.

It is bank Profits and bank survival at our expense.

The Government needs to run the economy not the banks.
So I encourage the Senate Economics Committee to support the Banking Amendments (Deposits) Bill 2020 which will amend the Crisis Management Act (2018) to clearly state that deposits will not be included in any bail-in ordered by APRA to resolve the banking crisis.

Yours Sincerely John Jenkins Banking Amendment (Deposits) Bill 2020Submission 116