Posted on 03/24/2013 5:15:07 PM PDT by Beave Meister
Wealthy Russians stand to lose billions of euros in Cypriot banks under draconian terms being hammered out on Sunday night in Brussels to prevent the Mediterranean tax haven becoming the first country forced out of the single currency.
Negotiations got underway amid a hardening of the stance held by the International Monetary Fund and Germany, who insisted that depositors must take the hit for bailing out the eurozone's latest crisis economy.
There were signs of panic in Cyprus as a €100 (£85) limit was imposed on ATM withdrawals, with more stringent capital controls to follow if a deal is reached.
The European Central Bank has threatened to cut off funds propping up Cypriot banks on Monday, precipitating the island's exit from the euro if agreement was not reached on Sunday night at the emergency meeting between eurozone finance ministers, the president of Cyprus Nicos Anastasiades, and the bailout troika of the IMF, European Commission and the ECB.
(Excerpt) Read more at guardian.co.uk ...
They’ve been given an offer they can’t refuse.
Scram doesn’t sound like such a terrible alternative, does it?
How wars start...
But not the bond holders. What gives? The depositors accounts were insured. At least split it with the bondholders. Something stinks here. Russian mafia money has become the “tax the rich” target here and the hapless Cypriots are caught in the crossfire. They can go ahead and clip the Russians but I wouldn’t want to be at the next Davos meeting. Something may go boom.
Well, yes. People don’t realize how many war hawks are in the EU’s ranks of elites.
Go back to the previous currency, the Cyprus pound or Lira.
A couple of years ago in Italy, I noticed that the check was in Liras and Euros. Talking to an engineer on a train, he said he had lost roughly 50% of his buying power. Not exactly a great selling point.
I kind of liked the Lira, it was cool spending 600,000 Lira to equal about $200.00 dollars.
How about the shareholders in the company? The stock should be canceled and the company recapitalized before a single penny is lost by the shareholders. By not paying the account holders the bank has admitted they are bankrupt. (that is assuming they are privately owned. Kind of hard to go officially bankrupt if you are owned by the government.)
The bank’s bonds are guaranteed by the ECB, so you know they won’t be giving themselves a haircut.
Remember, the depositors were “insured”, but only by the Cypriot government.
Every sovereign state insures the depositors at institutions in their borders. There is not cross border deposit insurance.
That’s why these bank accounts had the interest rates they did.
And of course, when you’ve stolen the money in the first place, being a Russian government official, anything you get to keep is an infinite return. They are the scum of the earth.
So are deposits up to 100,000 Euro.
Cyprus has a reputation to defend and if it illegally confiscates a significant percentage of deposits...it will collapse.
Goodbye deposits, goodbye investors, goodbye banks...goodbye country.
This is the first domino in the interconnected failure of socialism.
Let it fall!
Deposits are guaranteed up to 100K of Euros...not all deposits.
Armed and motivated scum of the earth.
Yeah, I reflected on this crisis about how the English Civil War, Revolutionary War and French Revolutions all started because the respective governments started brazenly engaging in illegal taxes and theft of their subject’s money to pay for their own profligacy.
And these struggles where against Kings who had previously been held in high regard by subjects who had known no other system of Government. Brussels has no such emotional or spiritual connection with the people it rules over. They really are pushing their luck when it comes to overvaluing how desperate the people’s of Europe are to have them as their overlords...
Heck no. All of our European ancestors made the decision to scram. And it was a good one considering what happened in Europe during the 1800's and 1900's.
This too big/important to fail meme is failure itself.
The EU agrees to bail them out tonight. Nothing to see here with stock market rally monday. All is well!! sarc.
I heard the deal is to be a 40% haircut on deposits over 100k euro.
The thieves are going to need serious security for a LONG time.
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