Skip to comments.Cyprus to shape future euro bank rescues: Eurogroup head
Posted on 03/26/2013 1:01:30 PM PDT by EBH
A rescue program agreed for Cyprus will serve as a model for dealing with future euro zone banking crises and other countries will have to restructure their banking sectors, the head of the region's finance ministers said.
The approach would mark a radical departure for euro zone policy after three years of crisis in which taxpayers across the region have effectively been on the hook for resolving problem banks and indebted governments via multiple rescue programs.
"What we've done last night is what I call pushing back the risks," Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers, told Reuters and the Financial Times on Monday, hours after the deal was struck.
"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalize yourself?'. If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalizing the bank, and if necessary the uninsured deposit holders," he said.
(Excerpt) Read more at reuters.com ...
Bank Run in Europe now or lose it all. They just put the handwriting on the wall for all to see!
Obama is salivating.
If people have enough money to deposit part of it in a bank, they don’t really need it. My neighborhood Wells Fargo Bank will heartily endorse that. We can fully fund our entitlements and create new ones by taking 40% of the rich bank depositor’s money.
This is really pretty incredible to watch come to full fruition. I am reading this stuff and wondering when the riots start and why it seems like NO ONE is doing anything! Is the apathy really this thick in the world?
And these idiots are going to be shocked when more institutions start failing due to the bank run they created...
These finance ministers are legends in their own minds. No amount of financial gimmickery can compensate for three generations of deficit spending, consuming more than is produced and non sustainable debt. This latest gimmick of confiscating private wealth is not exactly new. Wherever it has been done for economic or political reasons, the results have been catostrophic. Ask the Russians or Chinese. Capital flees, people become less productive and economies eventually contract and collapse. An orderly bankruptcy, political and economic reform is the only effective course for the West or it will collapse.
Just wait until the economy collapses...then they will riot.
That is just it. They will just come and take it.
They are calling this as taking from the “rich” and talk of Russia money laundering, but really how much is 100,000 eu? $128,000 dollars?
That is the small business man,...that is a retirement account for a middleclass person...
Maybe because this "bailout" actually wiped out bank shareholders for once. That is a GOOD thing. It also went after uninsured accounts over 100k Euro, that is also preferable to forcing taxpayers to bailout the banks. Now investors will just have to be more careful where they put their money. The Russian mob, for example, will have to find greener pastures for their investments and deposits.
Not all bank runs are quick (some are artificially slowed)...but confiscating free capital for the state is an assured way to make it (capital) evaporate.
What what is left in the banks after the confiscation will be transferred elsewhere, causing the banks to collapse.
Matthew 25: 14-30
Of course the difference here being the depositors are owners and not servants.
That is not much ...screw all this talk about the Russian mob money, it is a distraction to what is really happening to the average person on the street.
They're not going to follow this pattern because the larger bailouts have already been done in the larger countries.
This was a signal from the EU (mostly Germany) that it's had just about enough of bailing everyone out.
Only a Free Trader Communist Globalist thinks it’s OK for taxpayers to bail out banks when Free Trade organizations (which is what the EU is) order citizens to do so....because its Free Trade Communist policies failed
Americans actually dealt with such almost two decades ago when we bailed out Mexican financial institutions with $40-45 billion right after NAFTA passed. You can be sure a Cyprus style bailout will be tried here by the Free Trade Communists
The people who will riot and create violence are typically not rich.
How much is 100k Eu?
Maybe in the future the "average person on the street" will start voting for more responsible governments that don't massively overspend and allow their nations banking system to implode?
I think about $130,000
I know that’s not “rich”, but they still have something to lose.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.