Do I understand this right? “...depositors in Bank of Cyprus will get shares in the bank worth 37.5 percent of their deposits over 100,000 euros, the source told Reuters, while the rest of their deposits may never be paid back.”
They get 37.5 per cent of what they had in the bank and unless the bank does good the other 62.5 per cent of their deposit just gets flushed out to the bank(ECB,IMF, or whatever)? Please tell me this is a poorly written article.
The shares may not ever actually be worth anything so 100% of the balance over 100,000€ could be lost.
The number is actually 80%. (the MSM is protecting those bankers again) That is how much is going to be out right swiped right off the bat. And they claim it will take years to get the other 20%.
http://tickerforum.org/cgi-ticker/akcs-www?post=219237
It's not incredibly well-written but it does get one point across -- when you put your money in a bank, you are investing just as surely as when you buy shares of stock.
Banks are not magical places where interest shows up in your balance without your having risked anything. The Cyprus situation is serving as a big ol' wake-up call. Act accordingly.