Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

The Telegraph - UK ^ | 26 March 2013 | Bruno Waterfield

[MeneMeneTekelUpharsin]

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced. The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy. The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.

"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 recapitalise yourself?'," he said. "If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders."

Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

[I want the USA back]

Dear government(s). You do not own our money. You do not have the right to take it. Private property existed before you formed your government.

[SaraJohnson]

Actually, they want to take your private retirement funds, pool them in “safe investments” and redistribute them to replace Socialist inSecurity. Dems have the legislation all ready to slam through in our government debt coming “crisis.” That is why Obama is trying to run down Social Security and Medicare so he can create the crisis for the elderly. He’s spending Social Security money on generous SSI benefits and he’s cutting Medicare to cover part of the cost of Obamacare.