Bail-In Instead of Bail-Out for the Resolve of Financial Institutions. Does the New Model Violate the Right of Property?
Bibliographic record
Abstract
Financial crisis has raised many major legal issues. It is well known that financial institutions play a major role in economy. The economy nature requires financial institutions to undertake major risks to be profitable. If the financial institutions failed, an issue which would be arise is what method is the most efficient to resolve them.The two methods are bail-in and bail-out. The bail-out is the method that requires from taxpayers to pay the losses of the resolved bank, whereas in bail-in method the bank use its own means such as the deposits to be resolved. If the regulator (Government) decides that the most efficient method to resolve the bank and avoid systemic risk is the bail-in, then the legal issue arise is the right of property of deposit-holders.The policy of states worldwide, in case financial institutions fail, was that Governments grant financial aid to financial institutions by increase the taxes on citizens and person being bound to pay taxes.Financial crisis blew-out in 2008 in US and was transferred to the whole European market. Although Cyprus was considered strong economy it could not be the exemption. The mismanagement of risks in two major financial institutions and the Governmental deficit has almost leaded Cyprus to go on bankruptcy. The save of Cyprus economy was urgent for Eurozone, so the Minister of Finance after the President of Cyprus entered into an agreement with Troika, issued a decree which provides a haircut on deposits, in two above mentioned banks, which exceeded €100,000.00. The measure was unprecedented although it was known among economists and International Finance Organizations. The measure has never been applied to resolve failed banks.After the execution of the aforementioned measure, many deposits-holders filed recourses against the Minister of Finance decree alleging in pleading that the haircut violates obviously their right of property.This research paper analyzes the two methods for the resolve of failed banks and the legal relation between bank and depositor as well. Moreover the author of the current research paper gives his opinion if the method of bail-in violates the right of property taking into account many factors which will be explained further.
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How this classification was reachedexpand
Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.002 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.000 |
| Open science | 0.001 | 0.000 |
| Research integrity | 0.000 | 0.001 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one teacher head, not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".