Skip to comments.Have The Russians Already Quietly Withdrawn All Their Cash From Cyprus?
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 ...
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.
If this is true, Cyprus is screwed.
Yea, real quiet. Everyone in the world know they got their money out.
im definitely living in bizarro world when I cheer the Russians over progressives
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.
Of course not! All the Russian oligarchs and mafiosos just let the EU take their money and just grumbled about it. /sarc
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.
I am so tired of this “Tyler Durden” conspiracy nut halfwit.
But that could never happen here.
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.
Contrary from “warning Latvia” against taking the Russian money, they should have demanded that Latvia both take and seize the Russian money.
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.
You do know the origin of the pseudonym “Tyler Durden”?
Go watch “Fight Club”.
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.
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.
I was thinking the same, so when does deposits become assets of the bank. Good thing he does not run a bank.
It’s double entry bookkeeping, of which I are an expert, having encountered it once.
There is a difference between double entry and double books, and I suspect the latter in this case.
Somebody’s a halfwit, but it isn’t Tyler Durden.
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?
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.
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.
Thanks for posting. ZH is doing an extraordinary job following Cyprus. It is very interesting. BE PREPARED.
Cyprus is screwed anyway! How many depositors are going to remain when the banks open? How are they going to regulate that?
I guess we’ll find out.
“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....
The way theyre 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 dont have any savings anyway, so what the hell....
When and if they ever wake up, they will say “Its Bush’s fault.”
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.
Do you really have any doubt? Would you not remove you savings under the circumstances?
I would remove me, for sure.
Speaking of “- - - Russian billionaire oligarchs - - -, “ just how many Russian billionaire oligarchs does it take to rob a bank, any bank?
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.
Remember, it's not a bank run if you get out the day before the run starts.
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.
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.
If the money is gone...there can be no bailout and Cyprus is finished.
We will know very soon.
Bank of America is a Cypriot Bank?
Just had to be. All the weeks leading up to this was opportunity as well.
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.
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!
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.
For part II. Is it a coincidence about Putin’s nemisis dying the other day. Was he going to screw the pooch?