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Old 01-20-2014   #147
Marshall 
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Default Re: Brian Gardner fired

Quote:
Originally Posted by QuantumMortis View Post
This is getting wildly off topic, but this isn't accurate at least in the UK, and since US law is very much derived from Common Law it would likely apply here if ever tested. The EU agreed new rules on 12/11/13 for bank bailouts or "bail-ins" as well.

The law has been in existence for hundreds of years and was established in England by the House of Lords in the case Foley v Hill in 1848.

The money placed in the custody of the banker is, to all intent and purposes, the money of the banker, to do with it as he pleases; he is guilty of no breach of trust in employing it; he is not answerable TO THE PRINCIPAL IF HE PUTS IT INTO JEOPARDY, IF HE ENGAGES IN A HAZARDOUS SPECULATION; he is not bound to keep it or deal with it as the property of the principal, but he is of course answerable for the amount, because he has contracted, having received that money, to repay to the principal, when demanded, a sum equivalent to that paid into his hands. (quoted in UK Law Essays, #3b4d81;">Relationship Between A Banker And Customer,That Of A Creditor/Debtor, emphasis added,)"


For a more recent example see the Cyprus Bail-in in which accounts were raided by the bank when the debt went bad. The financial system and national governments are trying to end the taxpayer bailout(s) and instead the depositors will take the hit.


http://dzswc0o8s13dx.cloudfront.net/goldcore_bloomberg_chart1_03-12-13.png


TL;DR -- All your money are belong to us.
US Banking laws are different. There IS a fiduciary responsibility by the Banking side of the Financial institutions including the investment side. That's why many of the banking violations involve mixing client investment dollars with bank capital which was put at risk and violating this fiduciary responsibility.
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