Sunday, March 24, 2013

The Next Phase of the Financial Meltdown in Cyprus: an "Unimaginable" and Vicious Policy is Being Considered

The editor-in-chief of the Greek newspaper Ekathimerini asserts that an "unimaginable" solution is on the table.

The main question surrounds the future of the island’s largest lender, Bank of Cyprus. If unsecured deposits (above 100,000 euros) at all Cypriot banks are taxed then large savings at Bank of Cyprus are likely to be taxed between 20 and 25 percent. If the levy is not imposed on deposits at other lenders, the haircut for Bank of Cyprus customers will be much larger.

The option of a full bail in of Bank of Cyprus depositors is still on the table. As with the Popular Bank of Cyprus (Laiki), which is to go through a resolution process, the full bail in option could lead to deposits above 100,000 euros being lost. The only compensation for unsecured depositors will be shares in the “good” bank that will be created by a possible merger between the "healthy" Laiki and Bank of Cyprus entities.

Just a week ago the entire financial world shuddered when Cypriot banks were to "tax" (i.e., steal) 12 to 15 percent of deposits.

Now the act of total confiscation of these accounts is on the table.

This is lawlessness. And Statist cheerleaders like Henry Blodget and Paul Krugman support the policies that will bring Cyprus to our shores.


Best nifty tips said...

Would have been better if they were allowed to leave EU altogether

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Rorschach said...

there is an aspect to this many people don't know about. much of the Russian mob launders it's money through Cyprus. How do you think the Russian mob is going to take having it's profits wiped out in one fell swoop? I'm guessing not well...

Zilla said...

Hey Doug, Looky at what Brits see upon logging in at Laiki UK Bank:
looks like the English will see money confiscated as well if someone decides to redistribute it.
Why some of these countries surrendered their sovereignty to join the EU in the first place I will never understand.