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Have The Russians Already Quietly Withdrawn All Their Cash From Cyprus?
Zero Hedge ^ | 25 March 2013 | tyler durdan

Posted on 03/25/2013 7:32:19 PM PDT by Lorianne

Yesterday, we first reported on something very disturbing (at least to Cyprus' citizens): despite the closed banks (which will mostly reopen tomorrow, while the two biggest soon to be liquidated banks Laiki and BoC will be shuttered until Thursday) and the capital controls, the local financial system has been leaking cash. Lots and lots of cash.

Alas, we did not have much granularity or details on who or where these illegal transfers were conducted with. Today, courtesy of a follow up by Reuters, we do.

The result, at least for Europe, is quite scary because let's recall that the primary political purpose of destroying the Cyprus financial system was simply to punish and humiliate Russian billionaire oligarchs who held tens of billions in "unsecured" deposits with the island nation's two biggest banks.

As it turns out, these same oligrachs may have used the one week hiatus period of total chaos in the banking system to transfer the bulk of the cash they had deposited with one of the two main Cypriot banks, in the process making the whole punitive point of collapsing the Cyprus financial system entirely moot.

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


TOPICS: Business/Economy; Foreign Affairs; Germany; Government; Israel; Russia; United Kingdom
KEYWORDS: cyprus; cyprusconfiscation; cypruscrisis; cyprusrussia; europeanunion; germany; greece; israel; russia; turkey; unitedkingdom
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1 posted on 03/25/2013 7:32:19 PM PDT by Lorianne
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To: Lorianne

From Reuters:

While ordinary Cypriots queued at ATM machines to withdraw a few hundred euros as credit card transactions stopped, other depositors used an array of techniques to access their money.

No one knows exactly how much money has left Cyprus’ banks, or where it has gone. The two banks at the centre of the crisis - Cyprus Popular Bank, also known as Laiki, and Bank of Cyprus - have units in London which remained open throughout the week and placed no limits on withdrawals. Bank of Cyprus also owns 80 percent of Russia’s Uniastrum Bank, which put no restrictions on withdrawals in Russia. Russians were among Cypriot banks’ largest depositors.

http://www.reuters.com/article/2013/03/25/eurozone-cyprus-muddle-idUSL5N0CG13920130325


2 posted on 03/25/2013 7:33:10 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: Lorianne

If this is true, Cyprus is screwed.


3 posted on 03/25/2013 7:39:47 PM PDT by EEGator
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To: Lorianne

Yea, real quiet. Everyone in the world know they got their money out.


4 posted on 03/25/2013 7:40:00 PM PDT by DManA
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To: Lorianne

im definitely living in bizarro world when I cheer the Russians over progressives


5 posted on 03/25/2013 7:40:19 PM PDT by sten (fighting tyranny never goes out of style)
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To: Lorianne

Pure speculation on my part, but I’d guess that most of the big Russian money is long gone, and maybe some of the larger British expat accounts and well-heeled Cypriots may have taken advantage of this “bank holiday” as well.

As to where? Latvia, the Cayman Islands, Isle of Man, etc. most likely. I doubt any of it was repatriated to Russia. It flew away on a stream of electrons to other money havens.


6 posted on 03/25/2013 7:42:25 PM PDT by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: Lorianne
The main point was to punish the Russians?
7 posted on 03/25/2013 7:42:58 PM PDT by Ernest_at_the_Beach ((The Global Warming Hoax was a Criminal Act....where is Al Gore?))
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To: Lorianne

Of course not! All the Russian oligarchs and mafiosos just let the EU take their money and just grumbled about it. /sarc


8 posted on 03/25/2013 7:43:05 PM PDT by Shadow44
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To: Lorianne

this guy is such an idiot.

The “purpose” was not to punish Russian criminals, that was merely a happy side effect of not bailing out a corrupt country’s corrupt banking system that enables international corrupt criminal enterprises by helping them launder money from: Human Trafficking, PING! Selling Goods to Global Terrorist organizations, PING! You name it Vladimir Putin’s murderous minions are in it up to their eyeballs.


9 posted on 03/25/2013 7:43:28 PM PDT by babble-on
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To: AnAmericanAbroad

bbbbbullshit


10 posted on 03/25/2013 7:43:53 PM PDT by babble-on
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To: Ernest_at_the_Beach

I am so tired of this “Tyler Durden” conspiracy nut halfwit.


11 posted on 03/25/2013 7:44:54 PM PDT by babble-on
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To: Lorianne

But that could never happen here.

Uh oh.

Think about Warren Buffet, Goldman Sachs, Paulson and how that combo would have worked the same situation should it occur here.

I still can not figure out how that deal was never investigated.


12 posted on 03/25/2013 7:45:22 PM PDT by old curmudgeon
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To: Lorianne

Contrary from “warning Latvia” against taking the Russian money, they should have demanded that Latvia both take and seize the Russian money.


13 posted on 03/25/2013 7:45:49 PM PDT by G Larry (Which of Obama's policies do you think I'd support if he were white?)
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To: Shadow44

AND, while we’re at it, since you are too stupid even to read a freaking newspaper, NO BODY lost a penny. They just have to leave their money in the system. There were NO writedowns, but deposits were turned into assets with a longer maturity.


14 posted on 03/25/2013 7:46:39 PM PDT by babble-on
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To: Lorianne
do I really have to say it???

15 posted on 03/25/2013 7:47:26 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: babble-on
But he said granularity. Surely he knows what he's talking about.
16 posted on 03/25/2013 7:48:30 PM PDT by RegulatorCountry
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To: babble-on

You do know the origin of the pseudonym “Tyler Durden”?
Go watch “Fight Club”.


17 posted on 03/25/2013 7:49:16 PM PDT by ctdonath2 (3% of the population perpetrates >50% of homicides...but gun control advocates blame metal boxes.)
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To: Chode; a fool in paradise; Slings and Arrows
As I reported earlier, I don't recall Captain Renault ever saying "do I really have to say it???" (and that with, count them, three question marks!!!) to Rick, but having just watch the entertainment vehicle in question for the sole purpose of verifying my observation, I observed that in this very scene pictured above, Captain Renault in fact does speak to Rick the quote which would in later times be quoted in a historical setting!
18 posted on 03/25/2013 7:54:40 PM PDT by Revolting cat! (Bad things are wrong! Ice cream is delicious!)
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To: Revolting cat!
CORRECTION!
19 posted on 03/25/2013 7:56:01 PM PDT by Revolting cat! (Bad things are wrong! Ice cream is delicious!)
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To: babble-on

What if one didn’t want their assets turned into something with a “longer maturity”. When in the hell did a cash deposit turn into an “asset” for a bank? Deposits are liabilities, moron.


20 posted on 03/25/2013 7:57:06 PM PDT by Lurker (Violence is rarely the answer. But when it is it is the only answer.)
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To: sten
im definitely living in bizarro world when I cheer the Russians over progressives

You bet. It's always been a bit of a love/hate thing with the Russkis, though, hasn't it ? Recall that scene in PATTON.

21 posted on 03/25/2013 7:58:00 PM PDT by dr_lew
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To: Revolting cat!
like i told you last time, it's MY line... i made it up
22 posted on 03/25/2013 8:00:31 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: Lurker

I was thinking the same, so when does deposits become assets of the bank. Good thing he does not run a bank.


23 posted on 03/25/2013 8:02:21 PM PDT by Orange1998
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To: Lurker

It’s double entry bookkeeping, of which I are an expert, having encountered it once.


24 posted on 03/25/2013 8:04:09 PM PDT by dr_lew
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To: dr_lew

There is a difference between double entry and double books, and I suspect the latter in this case.


25 posted on 03/25/2013 8:12:25 PM PDT by old curmudgeon
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To: babble-on

Somebody’s a halfwit, but it isn’t Tyler Durden.


26 posted on 03/25/2013 8:13:17 PM PDT by mac_truck ( Aide toi et dieu t aidera)
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To: old curmudgeon

Simple double entry bookkeeping provides the entire rationale for a bank, in iconic form. People give the bank money for keeping, and are paid interest on that money in return, and may withdraw the interest and principal at any time. What a contract! How can the bank swing it? How can the bank swing it with no assets and only liabilities?


27 posted on 03/25/2013 8:18:47 PM PDT by dr_lew
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To: Lorianne

It makes perfect sense to close the banks until the bank officials and Roosians get their money out. After all, it’s the people’s country—make them pay for it.


28 posted on 03/25/2013 8:27:25 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: babble-on

Why don’t you calm down?

I mean, what’s it to you? You work for the ECB or something?

Threatening haircuts causes capital flight as much as actually doing it, especially when it was stopped at the 11th hour.

Switch to decaf.


29 posted on 03/25/2013 8:29:43 PM PDT by Shadow44
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To: Lorianne

Thanks for posting. ZH is doing an extraordinary job following Cyprus. It is very interesting. BE PREPARED.


30 posted on 03/25/2013 8:30:49 PM PDT by PGalt
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To: EEGator

Cyprus is screwed anyway! How many depositors are going to remain when the banks open? How are they going to regulate that?


31 posted on 03/25/2013 8:33:56 PM PDT by Deagle (quo)
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To: Deagle

I guess we’ll find out.


32 posted on 03/25/2013 8:40:09 PM PDT by EEGator
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To: old curmudgeon

“But that could never happen here.”

You forgot the sarc/ ; but, something so blatant is not/would not be necessary. Actually, we’ve been getting screwed for sometime now. Have you heard of QE1, QE2, Simulus packages, etc? Whenever the feeds print Monet they’re taking money out of our savings, 401K’s, IRA’s, home equity, land, anything if value. Buying power has been diminishing each time money is printed. Example is price of gasoline. Devaluation of dollar means it cost more dollars to buy anything on the international market, such as crude oil. So, why would our government want to be so obvious by openly taking, say 10% off of the top of folks bank holdings? The way they’re doing it here in the good ole U.S.A. Is quite stealthy and pretty darn slick if I must grudgingly must admit. Blowing it right by those low information voters for sure. But, on the other hand most if them don’t have any savings anyway, so what the hell....


33 posted on 03/25/2013 8:47:10 PM PDT by snoringbear (E.oGovernment is the Pimp,)
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To: snoringbear

The way they’re doing it here in the good ole U.S.A. Is quite stealthy and pretty darn slick if I must grudgingly must admit. Blowing it right by those low information voters for sure. But, on the other hand most if them don’t have any savings anyway, so what the hell....


When and if they ever wake up, they will say “Its Bush’s fault.”


34 posted on 03/25/2013 8:57:25 PM PDT by old curmudgeon
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To: snoringbear

Heh... The idea that it could not happen here is funny. Kind of like those that deny that the Fed could not keep buying debt without causing inflation...heh. We have long since past the common sense stage and are now in the “what if” stage... Welcome to the new world - Thanks to the Feds.


35 posted on 03/25/2013 8:59:19 PM PDT by Deagle (quo)
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To: EEGator

Do you really have any doubt? Would you not remove you savings under the circumstances?


36 posted on 03/25/2013 9:01:53 PM PDT by Deagle (quo)
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To: Deagle

I would remove me, for sure.


37 posted on 03/25/2013 9:06:31 PM PDT by EEGator
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To: Lorianne; All

Speaking of “- - - Russian billionaire oligarchs - - -, “ just how many Russian billionaire oligarchs does it take to rob a bank, any bank?


38 posted on 03/25/2013 9:15:37 PM PDT by Graewoulf (Traitor John Roberts' Commune-Style Obama'care' violates U.S. Constitution AND Anti-Trust Law.)
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To: Deagle
"Would you not remove you savings under the circumstances?"

Hmm....

Leave my money (earning a massive .25% interest per annum) in a bank savings account that may be inaccessible for 5-10 days or more or cash out and bury it in the back yard where I can get it with a shovel in 10 minutes.

Decisions, decisions....

Remember, it's not a bank run if you get out the day before the run starts.

39 posted on 03/25/2013 9:24:45 PM PDT by SnuffaBolshevik (In a tornado, even turkeys can fly.)
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To: SnuffaBolshevik

Heh...


40 posted on 03/25/2013 9:31:17 PM PDT by Deagle (quo)
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To: Graewoulf
Speaking of “- - - Russian billionaire oligarchs - - -, “ just how many Russian billionaire oligarchs does it take to rob a bank, any bank?

That's not the correct question to ask. You better ask how many Russian billionaire oligarchs does it take to rub a banker out. Any banker.

I'm sure that's the reason why when major account holders call the bank the bankers listen very carefully. They have nowhere to run, and the mafia is not practicing forgiveness.

41 posted on 03/25/2013 10:23:16 PM PDT by Greysard
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To: Lorianne

Is the president of Cyprus under investigation for reports that he tipped off many people that this haircut was coming, and for them to quickly withdraw their money from the Cyprus banks?
I read an article about this.


42 posted on 03/25/2013 11:04:04 PM PDT by rawhide
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To: Lorianne

If the money is gone...there can be no bailout and Cyprus is finished.

We will know very soon.


43 posted on 03/25/2013 11:13:38 PM PDT by SaxxonWoods (....Let It Burn....)
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To: babble-on
... a corrupt country’s corrupt banking system that enables international corrupt criminal enterprises by helping them launder money from: Human Trafficking, PING! Selling Goods to Global Terrorist organizations, PING! You name it Vladimir Putin’s murderous minions are in it up to their eyeballs.

Bank of America is a Cypriot Bank?

44 posted on 03/25/2013 11:14:53 PM PDT by An.American.Expatriate (Here's my strategy on the War against Terrorism: We win, they lose. - with apologies to R.R.)
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To: EEGator

Just had to be. All the weeks leading up to this was opportunity as well.


45 posted on 03/25/2013 11:58:26 PM PDT by wiggen (The teacher card. When the racism card just won't work.)
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To: babble-on; Shadow44
AND, while we’re at it, since you are too stupid even to read a freaking newspaper, NO BODY lost a penny. They just have to leave their money in the system. There were NO writedowns, but deposits were turned into assets with a longer maturity.

Wow, that is some style of argumentation.
Calling someone stupid? Really.
Would you address Mr. Shadow44 like that, say, over a dinner amongst your families?
I hope not.

Usually, the person who resorts to childish name calling does so when they have lost an argument and have nothing intelligent to say.

If people do not have access to their money, it is lost. The minute those banks open - which is again delayed - for the second week now, there will be a run. Anyone who is not brain dead will get their money out of Cyprus banks.

46 posted on 03/26/2013 1:38:10 AM PDT by Bon mots (Abu Ghraib: 47 Times on the front page of the NY Times | Benghazi: 2 Times)
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To: babble-on
AND, while we’re at it, since you are too stupid even to read a freaking newspaper, NO BODY lost a penny. They just have to leave their money in the system.

Cyprus lost any hope of a financial services industry. LOL! Moronic Eurotwits!

There were NO writedowns, but deposits were turned into assets with a longer maturity.

A deposit with a "longer maturity" is not a deposit. Epic fail!

47 posted on 03/26/2013 2:09:03 AM PDT by cynwoody
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To: Lorianne

Late last week, Cypriot officials met with the Russians reportedly to conduct
talks of a Russian bailout using Cypriot natural gas reserves as collateral.
The meetings were widely reported and took two or three days and ended with the Russians not offering any assistance.
Those meetings, I belive, were really for the purpose of facilitating the transfer of Russian funds away from Cypriot banks.
I find it hard to believe that the Russians would let their money be trapped by idiots like Merkel and LaGarde. As a matter of fact, I believe the ECB
New World Order illuminati bankers know full well what went down, even participating in the ruse in fear of the Russians.


48 posted on 03/26/2013 2:41:24 AM PDT by Palio di Siena
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To: Lorianne

For part II. Is it a coincidence about Putin’s nemisis dying the other day. Was he going to screw the pooch?


49 posted on 03/26/2013 4:32:30 AM PDT by ImJustAnotherOkie (zerogottago)
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To: Revolting cat!
ahhh... now i get it
50 posted on 03/26/2013 5:12:10 AM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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