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LIVE: Deal Reached On Cyprus Bailout
TBI ^ | 3-24-2013 | Matthew Boesler

Posted on 03/24/2013 7:11:45 PM PDT by blam

LIVE: Deal Reached On Cyprus Bailout

Matthew Boesler
March 24, 2013

The Eurogroup of euro zone finance ministers met in Brussels tonight to approve a plan to bail out the Cypriot banking system.

The new deal will see uninsured deposits at the country's two largest banks take a substantial haircut, but insured depositors – those with less than 100,000 euros in their bank accounts – will be spared from the one-off "tax" that was being considered just a week ago.

Reports of a deal between Cypriot and EU officials being reached prior to the Eurogroup meeting caused the euro and the Australian stock market to spike.

Now, the Eurogroup has signed off on the deal as well.

CNBC's Kelly Evans tweets that Cypriot President Nicos Anastasiades is pleased with the outcome:

Below are more details from Reuters on the plan:

It will mean that Popular Bank of Cyprus, the island's second largest bank which is also known as Laiki, will effectively be shut down.

Deposits below 100,000 euros in Laiki will be transferred to Bank of Cyprus, the country's largest bank. Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debts. It remains unclear how large the writedown on those funds will be.

No charges will be incurred against any Cypriot bank account with less than 100,000 euros in them, the officials said.

Because the process will be treated as a bank restructuring as opposed to a nationwide "tax" on bank deposits, it seems that the plan will not be subjected to another vote in the Cypriot parliament, which on Friday passed new laws enabling them to navigate the restructuring process more easily.

The Eurogroup press conference is now underway.

Dutch Finance Minister Jeroen Dijsselbloem,

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: Breaking News; News/Current Events; Russia
KEYWORDS: bailout; cyprus; eu; europe; soaktherich
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1 posted on 03/24/2013 7:11:45 PM PDT by blam
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To: blam

What a relief! /s


2 posted on 03/24/2013 7:13:59 PM PDT by Ken522
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To: blam

Ivan gets scalped.

Assuming the Russian 31 billion isn’t insured.


3 posted on 03/24/2013 7:15:30 PM PDT by GladesGuru (In a society predicated upon freedom, it is necessary to examine principles."..)
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To: blam

is that you rachel corrie?????


4 posted on 03/24/2013 7:15:34 PM PDT by bigheadfred
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To: blam

I know *I* have dozens of accounts to keep just under 100K in each of them for trying times such as this.


5 posted on 03/24/2013 7:15:40 PM PDT by txhurl
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To: GladesGuru
Ivan gets scalped.

Ivan won't forget.

6 posted on 03/24/2013 7:17:34 PM PDT by Vince Ferrer
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To: blam

Next stop: USA


7 posted on 03/24/2013 7:17:53 PM PDT by Obama_Is_Sabotaging_America (PRISON AT BENGHAZI?????)
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To: blam
Because the process will be treated as a bank restructuring as opposed to a nationwide "tax" on bank deposits, it seems that the plan will not be subjected to another vote in the Cypriot parliament,
8 posted on 03/24/2013 7:18:08 PM PDT by Arthurio
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To: blam

THe EU may be stupid and destroying European civilization, but they sure know how to cling on to power and never let go.


9 posted on 03/24/2013 7:18:15 PM PDT by Shadow44
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To: blam

Wow, that’s a relief. I thought they were going to do something crooked to steal depositor’s money. Just a little ole “government managed” bankruptcy....where have I heard that term before?


10 posted on 03/24/2013 7:19:19 PM PDT by RetiredTexasVet (Leveling the playing field for a Progressive is dragging everyone down to their level.)
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To: blam

Glory to the Belgian Bolshevik’s and the new revolution!


11 posted on 03/24/2013 7:21:13 PM PDT by SpaceBar
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To: SpaceBar

How much will prices spike now as investors take the money they have and purchase commodities to protect against seizures else where?


12 posted on 03/24/2013 7:25:05 PM PDT by jimpick
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To: blam

I’ve heard between 25 - 40 percent. There’s also a rumor that the Cypriot Parliament might not vote on it since it’s a “restructuring” and not a tax.


13 posted on 03/24/2013 7:27:11 PM PDT by EEGator
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To: blam

Whole lot of EU officials need to buy a Geiger counter.


14 posted on 03/24/2013 7:28:32 PM PDT by Pan_Yan (I love it when spell check selects every single word in my post.)
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To: GladesGuru

Any bets on how long before the first killing by the Russians?A bunch of people signed their own death warrants when they stole from former KGB types.


15 posted on 03/24/2013 7:30:06 PM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: blam

Cypriots have a hugh sigh of relief, as their bank accounts remain intact, while the same effect is achieved in a slightly different, but less noticeable way. You know, like has been happening, and is happening right now in the US.


16 posted on 03/24/2013 7:32:24 PM PDT by C210N (When people fear government there is tyranny; when government fears people there is liberty)
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To: RetiredTexasVet

Jeb Bush. Ima sure it was Jeb.


17 posted on 03/24/2013 7:32:35 PM PDT by bigheadfred
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To: Pan_Yan

Whole lot of EU officials will have to hire someone to start their car for them.


18 posted on 03/24/2013 7:32:58 PM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: RetiredTexasVet

A “haircut”, really? Um no, it is confiscation. And it’s outrageous.


19 posted on 03/24/2013 7:33:49 PM PDT by sybilll
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To: Ken522

So it would be better if the entire country collapsed and people started slaughtering each other in the streets?


20 posted on 03/24/2013 7:34:15 PM PDT by chessplayer
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To: blam; ladyjane; RitaOK; All

This is a watershed event for Capitalism, Worldwide.

IMHO, it signals that THE STATE has finally grown to be TO BIG TO FAIL, and thus must cannibalize all who have what THE STATE wants.

Profit and loss be damned, THE STATE must not fail! Heil! Heil! Heil!


21 posted on 03/24/2013 7:34:28 PM PDT by Graewoulf (Traitor John Roberts' Commune-Style Obama'care' violates U.S. Constitution AND Anti-Trust Law.)
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To: blam

“Deposits above 100,000 euros...will be frozen and will be used to resolve debts.”

People who have over 100,000€ in cash accounts are people with a proven ability to make things happen in their favor. Unwise to piss such people off.


22 posted on 03/24/2013 7:35:38 PM PDT by ctdonath2 (3% of the population perpetrates >50% of homicides...but gun control advocates blame metal boxes.)
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To: blam

Heh, just like Cryboehnor, kicking the can down the road.

Steal funds from someone else, delay responsibility, make bad decisions and won’t accept the responsibility for ruining things in the first place.


23 posted on 03/24/2013 7:36:19 PM PDT by quantim (Victory is not relative, it is absolute.)
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To: ctdonath2

Especially Russian billionaires.


24 posted on 03/24/2013 7:38:01 PM PDT by EEGator
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To: blam
Deposits below 100,000 euros in Laiki will be transferred to Bank of Cyprus, the country's largest bank. Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debts. It remains unclear how large the writedown on those funds will be.

In the US the FDIC says deposits insured up to E100,000. This seems to imply that if you were foolish enough to save up E105,000, that now all of your money goes to the bad bank to be lost forever with all of the big foreign money they're looting?

25 posted on 03/24/2013 7:43:47 PM PDT by aynrandfreak (Being a Democrat means never having to say you're sorry)
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To: ctdonath2

Read another thread with an article yesterday. Person said the ‘rich’ would pay. Looks correct from here. We wonder why Russia will come down from the north according to scripture.


26 posted on 03/24/2013 7:44:11 PM PDT by taterjay
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To: GladesGuru

Ivan getting scalpeled will definitely cause some major Bolshevik Blowback!


27 posted on 03/24/2013 7:46:00 PM PDT by Jack Hydrazine (I’m not a Republican, I’m a conservative! Pubbies haven't been conservative since before T.R.)
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To: EEGator

“I’ve heard between 25 - 40 percent.”

If that’s the case, I expect there will be many companies that can’t meet their payrolls or pay vendors. Then what? I haven’t heard whether bondholders will be getting a haircut.


28 posted on 03/24/2013 7:46:58 PM PDT by sergeantdave
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To: Farmer Dean

How much money do you think the Eurocrats stole from Pootie-Poot Putin?


29 posted on 03/24/2013 7:47:29 PM PDT by Jack Hydrazine (I’m not a Republican, I’m a conservative! Pubbies haven't been conservative since before T.R.)
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To: sergeantdave

I’ll see if I can find out about the bondholders.


30 posted on 03/24/2013 7:49:00 PM PDT by EEGator
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To: blam

Common tactic. Float a deal that raises an uproar, then everyone settles for something merely outrageous.

It’s theft, pure and simple.


31 posted on 03/24/2013 7:49:42 PM PDT by MV=PY (The Magic Question: Who's paying for it)
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To: sergeantdave

1. Laiki will be resolved immediately - with full contribution of equity shareholders, bond holders and uninsured depositors - based on a decision by the Central Bank of Cyprus, using the newly adopted Bank Resolution Framework.

2. Laiki will be split into a good bank and a bad bank. The bad bank will be run down over time.

3. The good bank will be folded into Bank of Cyprus (BoC), using the Bank Resolution Framework,after having heard the Boards of Directors of BoC a nd Laiki. It will take 9 bn Euros of ELA with it. Only uninsured deposits in BoC will remain frozen until recapitalisation has been effected, and may subsequently be subject to appropriate conditions.

4. The Governing Council of the ECB will provide liquidity to the BoC in line with applicable rules.

5. BoC will be recapitalised through a deposit/equity conversion of uninsured deposits with fullcontribution of equity shareholders and bond holders.

6. The conversion will be such that a capital ratio of 9 % is secured by the end of the programme.

7. All insured depositors in all banks will be full y protected in accordance with the relevant EU legislation.

8. The programme money (up to 10bn Euros) will not be used to recapitalise Laiki and Bank of Cyprus.


32 posted on 03/24/2013 7:51:57 PM PDT by EEGator
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To: Graewoulf

The European Union - the New Soviet Union?
http://www.youtube.com/watch?v=bM2Ql3wOGcU


33 posted on 03/24/2013 7:52:17 PM PDT by Jack Hydrazine (I’m not a Republican, I’m a conservative! Pubbies haven't been conservative since before T.R.)
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To: GladesGuru

The price of natural gas will go up a little for Europe, all will be well...


34 posted on 03/24/2013 7:52:29 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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To: EEGator

*from zerohedge


35 posted on 03/24/2013 7:52:34 PM PDT by EEGator
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To: MV=PY

Advantage Russia.

And I will say this, unlike the EU, Russia won’t impose acceptance of faggotry on their subjects.


36 posted on 03/24/2013 7:53:57 PM PDT by dfwgator
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To: Farmer Dean
Any bets on how long before the first killing by the Russians?

A good question ... And note this news item.

Berezovsky, a Russian oligarch and long-time critic of Russian President Vladimir Putin, was found dead at his home near Ascot, a well-heeled commuter town near London, on Saturday afternoon.

Read more: http://www.smh.com.au/world/radiation-experts-join-berezovsky-probe-20130324-2gnix.html#ixzz2OW51FvZF

37 posted on 03/24/2013 7:56:35 PM PDT by BlackVeil
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To: blam

I expect to see the stock market go up furiously tomorrow with the good news of yet another government bailed out with worthless money. Yippee!! I’m sure the MSM will be having more Obamagasms over this news, even though he had nothing to do with it.


38 posted on 03/24/2013 8:00:14 PM PDT by woweeitsme
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To: blam

It’s really horrible. Banks have absolutely no ownership interest in their depositor’s money. To the extent that deposits are insured, the insurer would pay the banks and then go after the banks in subrogation. As to uninsured amounts, the depositor would proceed directly against the banks to collect. But under no circumstances does a bank have the right to simply take the property of another - i.e. the depositors - and use it to write down other debts it owes to other parties, including regulators. This is really the most lawless thing imaginable. They might as well have gone to every Cypriot who owns a car and taken their vehicle and sold it at auction and pocketed the money. It’s exactly the same thing - theft. This is larceny pure and simple.


39 posted on 03/24/2013 8:06:08 PM PDT by Gluteus Maximus
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To: blam

25-40% isn’t a restructuring, haircut, fleecing or scalping; that’s rape and pillage.


40 posted on 03/24/2013 8:08:27 PM PDT by RHS Jr (Pity the banksters when Jesus comes)
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To: sergeantdave
“I’ve heard between 25 - 40 percent.”

Anyone with money needs to put a good percent of their wealth into hard assets. Land (waterfront lots, farmland), gold/silver etc. REIT's are also a good place to be. You need some cash but you need to look average to almost poor. Hide your wealth. That's the great lesson here.

41 posted on 03/24/2013 8:11:24 PM PDT by Katiana Kalashnikova
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To: taterjay

“Person said the ‘rich’ would pay. Looks correct from here.”

Except for those privileged ‘rich’ insiders connected to the ECB who somehow managed to transfer their funds ahead of their accounts being frozen, no doubt.


42 posted on 03/24/2013 8:12:08 PM PDT by ScottfromNJ
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To: sergeantdave

I also think there will still be a run on the banks for those under 100K euros.


43 posted on 03/24/2013 8:16:25 PM PDT by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
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To: Gluteus Maximus

Think of the example this sets. If I was rich in another EU country, my money is gone tomorrow.


44 posted on 03/24/2013 8:17:09 PM PDT by EEGator
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To: RHS Jr

My viking blood is starting to tingle.


45 posted on 03/24/2013 8:17:33 PM PDT by SgtHooper (The last thing I want to do is hurt you. But it's still on the list.)
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To: blam

“Because the process will be treated as a bank restructuring as opposed to a nationwide “tax” on bank deposits, it seems that the plan will not be subjected to another vote in the Cypriot parliament”

That’s because ones and zeros on spinning hard drives are even more fungible than physical money. In fact, spinning ones and zeros are about as fungible as something can get.


46 posted on 03/24/2013 8:18:18 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: EEGator

Yes, but it’s even worse than that. No property right is safe in EU now. They can simply confiscate your property without recourse. No due process of law. This will come to be seen as a watershed event.


47 posted on 03/24/2013 8:18:39 PM PDT by Gluteus Maximus
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To: Katiana Kalashnikova
Land (waterfront lots, farmland)

Might not be a sure safe haven. They were already considering seizing real estate of foreigners. In fact, waterfront lots on the Mediterranean.

48 posted on 03/24/2013 8:26:11 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: Gluteus Maximus

True, and by un-elected bureaucrats from another country. I concur with your last sentence completely.


49 posted on 03/24/2013 8:26:12 PM PDT by EEGator
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To: Arthurio
Because the process will be treated as a bank restructuring as opposed to a nationwide "tax" on bank deposits, it seems that the plan will not be subjected to another vote in the Cypriot parliament,

Their political thieves are not as creative as ours. All they need to do is say you have to vote on the bill to find out what is in the bill.

50 posted on 03/24/2013 8:31:19 PM PDT by justa-hairyape
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