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.
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.)
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.
Deposits are guaranteed up to 100K of Euros...not all deposits.