Posted on 03/25/2013 3:17:42 PM PDT by mdittmar
BRUSSELS (Reuters) - 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 news.yahoo.com ...
I can’t believe the Cypriots aren’t in the streets rioting. I can’t believe there is still any money in any other Euro bank. It would be safer to give it to a broker and limit his trades to savings accounts. Un-believable this happened.
I left out an important abbreviation - ‘US’ savings accounts. Big oops.
The only money that people should have with ANY bank, is funds for immediate living expenses. The Market is rigged, the Fed keeps buying our national debt with printed fiat money, don’t trust that either for more than a short term investment, by that I mean be able to pull it in a day.
We haven’t seen nothin’ yet. The dark evolution of socialism continues. As this spreads to other countries like Italy, Greece and Spain it will only assure the fascist parties greater electoral victories as they openly oppose these EU confiscations. Beppe Grillo must be giddy tonight.
Only a fool would keep their money in European banks at this point. And the US is soon to follow.
As soon as any run starts -- if one does -- hasn't really happened yet -- you will see instant capital controls. Max withdrawal $100, £100, 100€, etc., per day. Problem solved.
It’s all fun and games until the rope and lead come out.
And they call us “radicals”.
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