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Cyprus banks remain closed to avert run on deposits
Yahoo Finance ^ | 3/26/2013 | Michele Kambas and Karolina Tagaris

Posted on 03/26/2013 2:47:10 AM PDT by LiveFreeOrDie2001

NICOSIA (Reuters) - Banks in Cyprus will remain closed until Thursday, and even then subject to capital controls to prevent a run on deposits, after a European Union bailout that the country's president assured his people was in their best interests.

After returning from fraught negotiations in Brussels, President Nicos Anastasiades said late on Monday the 10-billion euro ($13 billion) rescue plan agreed there in the early hours of the morning was "painful" but essential to avoid economic meltdown.

He agreed to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus's outsize financial sector ran into trouble when its investments in neighboring Greece went sour.

European leaders said a chaotic national bankruptcy that might have forced Cyprus from the euro and upset Europe's economy was averted - though investors in other European banks are alarmed by the precedent of losses for depositors in Cyprus.

"The agreement we reached is difficult but, under the circumstances, the best that we could achieve," Anastasiades said in a televised address to the nation on Monday evening.

"We leave behind the uncertainty and anxiety that we all lived through over the last few months and we look forward now to the future with optimism," he told compatriots who face an immediate, deep recession and years of hardship unlikely to be milder than those experienced by Irish, Greeks and Portuguese.

Many Cypriots say they felt anything but reassured by the bailout deal, however, and are expected to besiege banks as soon as they reopen after a shutdown that began over a week ago.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Front Page News; Germany; Government; Israel; News/Current Events; Russia; United Kingdom
KEYWORDS: cyprus; cyprusbanks; cyprusbanksclosed; europeanunion; germany; greece; israel; russia; turkey; unitedkingdom
Holding off the riots?
1 posted on 03/26/2013 2:47:10 AM PDT by LiveFreeOrDie2001
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To: LiveFreeOrDie2001

Government wants its run on the deposits first.


2 posted on 03/26/2013 2:52:16 AM PDT by Hardraade (http://junipersec.wordpress.com (Vendetta))
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To: LiveFreeOrDie2001
They can't continue to hold off a bank run indefinitely. It is inevitable.

Either way (bank open as scheduled or delay even later) hard times [yes, riot(s)] are coming.

3 posted on 03/26/2013 2:52:20 AM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: LiveFreeOrDie2001

If Cyprus keeps the banks closed, the run on the banks will start elsewhere. Spain, Portugal, Italy, Greece, Ireland. Take your pick:

http://www.freerepublic.com/focus/f-news/3000797/posts


4 posted on 03/26/2013 2:52:50 AM PDT by Rocky (Obama is pure evil.)
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To: Hardraade

Yep, plus it takes time to shift money back into Cyprus.

This is the “Settlement Time”.....


5 posted on 03/26/2013 2:56:02 AM PDT by LiveFreeOrDie2001 (Elections have consequences - NOW LOOK what we have to deal with...)
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To: LiveFreeOrDie2001

The Russian money is long gone. The failed “bailout” meetings with the Russians last week was a ruse to facilitate the transfer of the money.
Putin would never let Russian money be trapped by lesbian idiots Merkel and LaGarde.


6 posted on 03/26/2013 3:01:22 AM PDT by Palio di Siena
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To: LiveFreeOrDie2001

Controlled bank run, Their branches in europe have remained open, European depositors along with Ivan have likely already withdrawn their funds.


7 posted on 03/26/2013 3:03:01 AM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
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To: swamprebel

If I hide under a blanket, you can’t see me.


8 posted on 03/26/2013 3:13:59 AM PDT by knarf (I say things that are true ... I have no proof ... but they're true)
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To: LiveFreeOrDie2001

I’m waiting to see the smoke and fires to start rising from Cypriot banks and public buildings. Will they now open on Thursday or will there be another postponement until next week? The pressure is building.


9 posted on 03/26/2013 4:14:02 AM PDT by Truth29
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To: LiveFreeOrDie2001

They won’t be holding them off for much longer if stores can’t buy products, people can’t buy food or gas, etc...


10 posted on 03/26/2013 4:23:06 AM PDT by autumnraine (America how long will you be so deaf and dumb to thoe tumbril wheels carrying you to the guillotine?)
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To: LiveFreeOrDie2001

I don’t see how people survive with no access to their money. No doubt credit cards & checks are worthless in stores - cash is king.

So, how do people feed themselves & obtain the necessities?

I’ve seen numerous articles on the bank lockouts, but nothing on the effects on the people.


11 posted on 03/26/2013 4:29:41 AM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
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To: Palio di Siena

Merkel and LaGarde are idiots but lezbos, too?


12 posted on 03/26/2013 4:38:44 AM PDT by newfreep (Breitbart sent me...)
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To: LiveFreeOrDie2001
After returning from fraught negotiations in Brussels, President Nicos Anastasiades said late on Monday the 10-billion euro ($13 billion) rescue plan agreed there in the early hours of the morning was "painful" but essential to avoid economic meltdown.

He agreed to close down the second-largest bank, Cyprus Popular, and inflict heavy losses on big depositors, many of them Russian, after Cyprus's outsize financial sector ran into trouble when its investments in neighboring Greece went sour.

I utterly fail to understand how the outright theft of depositors' money can have anything but a economy killing effect. How is that considered a rescue?

The real pain here is that the socialists, even when confronted with the collapse of an untenable system, are doing everything they can to avoid addressing the root of the problem. As long as they won't ditch socialist redistribution schemes, the economy will collapse and won't be rescuable.

Cypress is showing socialist collapse on a small scale. Large scale, it may take longer, but it is still inevitable. "Too big to fail" does not exist.

13 posted on 03/26/2013 4:41:00 AM PDT by exDemMom (Now that I've finally accepted that I'm living a bad hair life, I'm more at peace with the world.)
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To: Sir Napsalot

How do you save a bank by ignoring the reason for putting money in a bank.

What fool would ever place savings in a bank that steals them.

Of course there will be a run. I am surprised that banks in America haven’t had a run on them yet.


14 posted on 03/26/2013 4:42:03 AM PDT by Venturer
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To: newfreep

LaGarde I believe is a tranny, look at pictures of her, read her tweets.
She wears scarves around her neck most of the time concealing an Adam’s apple that’s larger than mine.
Merkel - just one look, thats all it took.


15 posted on 03/26/2013 4:43:33 AM PDT by Palio di Siena
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To: LiveFreeOrDie2001

16 posted on 03/26/2013 4:50:14 AM PDT by StAnDeliver (Own it.)
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To: Hardraade

you are wise, yoda

the Russians’ relatively mild acceptance suggests deals were made with the people who matter, and pensioners and the unpolitically connected Russians are gonna get a Merkel buzz cut


17 posted on 03/26/2013 4:50:33 AM PDT by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: Venturer

>>> What fool would ever place savings in a bank that steals them.

You’d be surprised.


18 posted on 03/26/2013 4:53:38 AM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: Venturer

Wonder if this could be an opportunity for a new banking model. No interest payment on insured deposits, in fact you pay 0.1% ( or similar) per year and the Bank DOES NOT LEND OUT YOUR DEPOSITS. They actually BANK the money guaranteeing no loses.

Not monster profits. Like the current thievery system, but if you attracted huge deposits for safety........


19 posted on 03/26/2013 4:55:43 AM PDT by Kozak (The Republic is dead. I do not owe what we have any loyalty, wealth or sympathy.)
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To: LiveFreeOrDie2001

It’s still theft, even if they make it complicated to understand.

That’s what they will do here. Mix it up with big words that the idiot public can’t understand, and it will pass. The low information voters won’t know what happened and will blame it on Republicans like the media tells them to.


20 posted on 03/26/2013 4:58:30 AM PDT by I want the USA back (Pi$$ed off yet?)
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To: I want the USA back

What if they open up the banks and the money is entirely gone?

I’m wondering about that.


21 posted on 03/26/2013 5:07:30 AM PDT by LibsRJerks
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To: LibsRJerks

that’s exactly what is going to happen. All the big depositors have already taken their money out via branches in other countries that have remained open this entire time.

In the end they will be forced to confiscate the money of those with less than 100,000 euros in their accounts. The few remaining depositors (to stupid to withdraw their money from a foreign branch) will certainly make a run on the bank when they eventually reopen.


22 posted on 03/26/2013 5:14:33 AM PDT by TexasFreeper2009 (Obama lied .. the economy died.)
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To: LibsRJerks

the money is “gone” ... that’s why they needed a $13 billion dollar loan to get a new line of credit to meet (controlled/rationed?) withdrawals

Wonder how long they can make that last?

Not that we can talk, our own banking system is built on a house of cards “guaranteed” by an indebted spendaholic corruptocrat-controlled govt that the globalists just cannot wait to pwn

I read that Brits have been advised to not keep money in Spain banks ... any pensioner expats in the PIIGs who aren’t taking lessons from this are pretty unwise


23 posted on 03/26/2013 5:16:45 AM PDT by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: LiveFreeOrDie2001

At this point, the attention needs to shift from Cyprus to Italy and Spain, where every sane person should be withdrawing their money from banks as fast as they can.

If they fail to do so, the more fool them. The “European Junta” has made it clear they intend to loot savings and investments elsewhere, and given fair warning, if you fail to act, it’s your own fault.


24 posted on 03/26/2013 5:20:21 AM PDT by yefragetuwrabrumuy (Best WoT news at rantburg.com)
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To: LiveFreeOrDie2001

I certainly hope people weren’t being paid by direct deposit.

Small and medium businesses can’t be run properly without access to their money can they?


25 posted on 03/26/2013 5:45:47 AM PDT by GeronL (http://asspos.blogspot.com)
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To: Venturer

because Americans have been numbed ad dumbed down


26 posted on 03/26/2013 5:47:19 AM PDT by GeronL (http://asspos.blogspot.com)
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To: GeronL

“Small and medium businesses can’t be run properly without access to their money can they?”

The socialist morons don’t want to talk about that. If businesses get a 25 to 40% haircut on deposits, how will they meet payrolls and pay vendors? This house of cards is only beginning to fall. The fascists in Brussels are hoping to contain the chaos to Cyprus.


27 posted on 03/26/2013 5:57:07 AM PDT by sergeantdave
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To: sergeantdave

It’s a death spiral


28 posted on 03/26/2013 5:57:40 AM PDT by GeronL (http://asspos.blogspot.com)
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To: exDemMom
I utterly fail to understand how the outright theft of depositors' money can have anything but a economy killing effect. How is that considered a rescue?

It's not a rescue. And you can discount anything the local Cypriot pols are saying. The fact is that Cyprus should never have been in the EU in the first place. They are only in because back when times were better (or appeared better), the Greeks were able to able to shove them into the EU against will of Germany. This is a chance for the northern block to get some revenge and cream off the profitable Russian business for themselves. BTW, the Russians got out of this mess completely whole. You can take that to the (Belgian) bank. This is war without tanks. Tanks are expensive.

29 posted on 03/26/2013 6:26:22 AM PDT by Poison Pill (Take your silver lining and SHOVE IT!)
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To: Palio di Siena

Yep. The Russians have already made a run on the banks. Riots will break out soon.


30 posted on 03/26/2013 7:38:45 AM PDT by tennmountainman
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To: Venturer
Of course there will be a run. I am surprised that banks in America haven’t had a run on them yet.

I have noticed on many threads that lots of FReepers are pulling cash out. At least they say they are.

31 posted on 03/26/2013 1:01:15 PM PDT by houeto (https://secure.freerepublic.com/donate/)
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To: houeto
At least they say they are.

No, we ARE pulling funds out of the bank. Sure are.

32 posted on 03/27/2013 7:41:27 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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