The Tender For Law

Volume 1

Feb 20, 2013 10:06 PM

Derek Moran

(sorry Scott, not exactly case-law..but it will have to do) ;)

HOW BANKS CREATE, AND WOULD LIKE TO CREATE, MORE CREDIT THEY STEAL FROM YOU

INDUSTRY COMMENTS: Section 1.9, Asset to capital multiple Would OSFI please consider a recalibration of the 20x and 23x maximum assets to capital multiple (ACM). The change in the definition of capital will increase banks� ACM without a corresponding increase in risk taking. Higher maximum ACM would allow banks to absorb the change to the definition of capital (i.e. which will put Canadian banks at a disadvantage as we phase in new capital deductions), and put banks in a better position to deal with the complications arising from managing the phase-out of existing Tier 2 capital (i.e. subordinated debentures), while planning for the ultimate transition to the new Tier 1-based Basel III Leverage Ratio.

OSFI RESPONSE: OSFI does not feel it would be prudent to increase the maximum authorized Assets to Capital Multiple at this time given the Basel III leverage ratio is still under review and as we move towards public disclosure of the leverage ratio in 2015 and implementation in 2018,

http://www.osfi-bsif.gc.ca/app/DocRepository/1/eng/guidelines/capital/guidelines/CAR_chpt_let_e.pdf

osfi-bsif.gc.ca

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Derek Moran

MODERN MONEY MECHANICS: The purpose of this booklet is to describe the basic process of money creation in a "FRACTIONAL RESERVE" banking system.

http://ia700202.us.archive.org/3/items/ModernMoneyMechanics/MMM.pdf

Derek Moran

Derek Moran: Yup. Banks legally are allowed to counterfeit credit, basically. In Canada, the Fractional-Reserve-Rate/Ratio, is called either the CAPITAL ADEQUACY REQUIREMENT, or the ASSET CAPITAL MULTIPLE. However, no promissory note-representing-debt + your signature = NO, CREDIT, for THEM. The rate is 23 in Canada, btw.

Derek Moran

Derek Moran: The problem is, when we all opened-up a bank-account and never read the 10-page contract, they had language that apparently waived our right to discharge bill-payment-remittances in it. But, you cannot waive a right unless you did it with the express intent to.

Derek Moran

Derek Moran: "the original instrument of indebtedness," is a promissory note, which is considered to be the money you created with your signature.. and yes, they wont want to provide the original because its probably been marked-up from being Fraction-Banked, and evidence the bank has ALREADY been paid.

Derek Moran

53. Under this test, total assets should be no greater than 20 times capital, although this multiple can be exceeded with the Superintendent's prior approval to an amount no greater than 23 times. Alternatively, the Superintendent may prescribe a lower multiple. In setting the assets to capital multiple for individual institutions, the Superintendent will consider such factors as operating and management experience, strength of parent, earnings, diversification of assets, type of assets and appetite for risk.

http://www.osfi-bsif.gc.ca/Eng/fi-if/rg-ro/gdn-ort/gl-ld/Pages/CAR_chpt1.aspx#ToC19Theassetstocapitalmultiple