Cyprus confiscates bank saver funds

[jclay2]

Everyone should really take heart at this because it demonstrates that the banking cartel is really NOT very bright. Gee, did it occur to anyone that confiscating people's savings to paper over a bank crisis just MIGHT make people more skittish about leaving their money in banks? And that maybe this would make banks all over Europe more run-prone? Really, REALLY stupid.

Maybe I have to much of a conspiracy mind, but this idea was so obviously dumb and only going to make the problem worse that I have to think that it was done on purpose. What else would explain it? The only thing I don't understand is their medium term goal with this crisis?

 

[TheTexan]

Maybe I have to much of a conspiracy mind, but this idea was so obviously dumb and only going to make the problem worse that I have to think that it was done on purpose. What else would explain it? The only thing I don't understand is their medium term goal with this crisis?

Germany could be maneuvering an exit out of the EU

 

[Seraphim]

German manufacturing requires the EU to pump out it's goods.

Germany does not want out of the EU; it wants a Euro devaluation.

Germany could be maneuvering an exit out of the EU

 

[LibForestPaul]

Who wins and how when Greeks start pulling money out of system?
How will Goldman profit?
Derivative contracts unwind?

 

[TheTexan]

German manufacturing requires the EU to pump out it's goods.

Not if it's already milked the EU for all its worth. Evidence of that is starting to mount up.

But I do agree, it's unlikely. Those who have the kind of power that Germany does now aren't usually too keen to give it up.

 

[enoch150]

Maybe I have to much of a conspiracy mind, but this idea was so obviously dumb and only going to make the problem worse that I have to think that it was done on purpose. What else would explain it? The only thing I don't understand is their medium term goal with this crisis?

Engineer a crisis. Buy up assets cheap. Regulate the hell out of everything so no one else can ever be in a position to challenge them. Set the bankers up to take the blame.

Somebody should make a movie.

 

[awake]

They are thieves, nothing more. I hope they get seen as such by as many eyes as possible. A total bankruptcy of a government is liberty for its "citizens".

 

[Carson]

I thought whoa when I heard about this but I don't think it really hit me until I read this post of Fark today.

First Tyrone Slothrop wrote;

Tyrone Slothrop: There is something seriously wrong with the financial industry when a tax in Cyprus can cause world-wide panic.


Then xaldin answered him with;

Well it marks first time of raiding people's savings accounts for money. People tend to view that as a really big red flag because it is counter to how the accounts are built. They aren't investments which carry risk. Now you're forcing a level of risk in the system that never existed before.

It was in this thread;

FED boss says your big bank could fail. DOW futures sag on the overnight trading scams. Start stuffing your mattresses with bank cash and put your helmets on. Monday could be a hard slide

Link is to the comments. For the actual article click the icon up to the left of the headline;

http://www.fark.com/comments/7650423/FED-boss-says-your-big-bank-could-fail-DOW-futures-sag-on-overnight-trading-scams-Start-stuffing-your-mattresses-with-bank-cash-put-your-helmets-on-Monday-could-be-a-hard-slide

 

[fj45lvr]

I don't understand this- why didn't they just use the hidden inflation tax to confiscate people's wealth. why did they do it above board? that is not normal.

because the euro central bank wasn't going to do it due to the fact that they would never be repaid (the countries in the euro that are on good footing don't see themselves as needing to pay for some other banks bad debts in some other country (why the EURO is destined to fail).

 

[Zippyjuan]

New options not that great either: http://enews.earthlink.net/article/int?guid=20130321/f54cbb32-0c9d-4a99-a5fb-21833642f46f

Cyprus has been told it must raise 5.8 billion euros ($7.5 billion) if it is to receive 10 billion euros ($12.9 billion) from its fellow eurozone countries and the International Monetary Fund. If it does not find a way by Monday, the European Central Bank said it will cut off emergency support to the banks, letting them collapse.

That would throw the country into financial chaos and, ultimately, cause it to leave the eurozone, with unpredictable consequences for the region.

President Nicos Anastasiades held a series of meetings with political party leaders to consider a range of measures that could raise the necessary funds.

The "Plan B" will likely include restructuring Cyprus' troubled banks, some form of Russian help, dipping into pension funds and taking up an offer from Cyprus' wealthy Orthodox church to contribute. Some form of tax on bank deposits is also possible.

One new development Thursday was the government's announcement of its intention to create a so-called "Investment Solidarity Fund." That bill and the bank restructuring bill were sent to Parliament Thursday night for discussion. It was unclear when there might be a vote.

The fund is intended to appeal to "the patriotism of Cypriots" and draw on contributions from ordinary Cypriots, businessmen and foreign investors, said Demetris Syllouris, head of a small right-wing party who was in a meeting with the president where the "Plan B" was being hashed out.

A "Plan B" is needed after lawmakers soundly defeated the earlier proposal to seize up to 10 percent of all domestic deposits to raise the 5.8 billion euros.

"We will have a program of support for Cyprus by Monday," Demetriades said earlier in the day.

One major lender, Bank of Cyprus, appealed to the government and politicians to reach a plan that the eurozone partners would accept, clearing the way for the bailout.

"The Cypriot economy is in a marginal and fragile state. The next move could prove salutary or disastrous," the bank said in a statement. "It is imperative we immediately proceed with the drawing up of an agreement with the Eurogroup."

Russia is likely to pitch in with the new plan, though its contribution will be smaller than originally hoped for, Cypriot officials have said. Nearly a third of the 68 billion euros ($88 billion) in deposits in Cyprus' oversized banking sector are held by Russians.

Cyprus' finance minister, Michalis Sarris, has been in Moscow since Tuesday seeking to forge a deal. Russia's help would not be a loan, but rather some form of an investment, he said.

Russia is looking for a share of their natural gas production.

 

[Demigod]

Maybe I have to much of a conspiracy mind, but this idea was so obviously dumb and only going to make the problem worse that I have to think that it was done on purpose. What else would explain it? The only thing I don't understand is their medium term goal with this crisis?

It was just a test,Cyprus is a very small country with a small population and a small economy.If everything went according to their plan than they would have next implemented it in Greece/Ireland/Slovenia and eventually to Italy and Spain if everything went bad Russian oligarchs would lose money in theory it was a good plan.But it failed miserably ( the reaction they got was you touch our money "we kill you" ) and now they went to a situation where if Cyprus accepts Russian help they would essentially become a Russian colony and the UK would lose their base there.Cyprus is a EU member.

 

[Carson]

I heard something on the news that the ripping off of the depositors in Cyprus is back on.

10 to 15% over $100,000. Around 5% or so under. That's what the people are going to have to take coming in the front door. No telling what the toll will be from the inflation caused by the stealth socialism in the back door.

I suppose no matter how much honest money they gathered together to build their world the way they want others, inside and outside of their country, will be able to print up what ever it takes to get their way.

http://www.nytimes.com/2013/03/24/business/global/cyprus-makes-fitful-progress-on-bank-bailout-deal.html?_r=0

"There, accounts over 100,000 euros would be subject to the 20 percent tax."

 

[pmbug]

Cyprus clinched a last-ditch deal with international lenders on Monday for a 10 billion euro ($13 billion) bailout that will shut down its second largest bank and inflict heavy losses on uninsured depositors.

Following is the detail of the deal in a statement from euro zone finance ministers.
...

http://www.reuters.com/article/2013/03/25/us-eurozone-cyprus-text-idUSBRE92O02920130325

Cyprus agreed to the outlines of an international bailout, paving the way for 10 billion euros ($13 billion) of emergency loans and eliminating the threat of default.

The accord between Cyprus and the “troika” representing international lenders was reached in overnight talks in Brussels and ratified by finance ministers from the 17-nation euro area.

“It’s in best interest of the Cyprus people and the European Union,” Cyprus President Nicos Anastasiades told reporters.
...
Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.
...

http://www.bloomberg.com/news/2013-...entative-deal-to-avert-default-euro-exit.html

Depositors in the Bank of Cyprus, the biggest bank on the island, will reportedly lose 30 percent on their holdings above 100,000 euros, the chairman of the Cypriot parliamentary finance committee said on Monday.

"I haven't heard a formal announcement about the haircut, but this is the figure I heard," Irish radio quotes Nicholas Papadopoulos as saying.
...
"The result is a fair one for everybody involved,” German Finance Minister Wolfgang Schaeuble told a news conference after the 11th-hour talks ended with a deal.

"I think it's a good one" and it will "serve as a basis for negotiations with the troika" of international creditors, he stressed.

It will help "stabilize the situation in Cyprus and help Cyprus back onto a path of sustainable consolidation. I think the solution can help win back lost confidence for and in Cyprus," he said.

"It is the best path possible even if it isn't an easy one."

Russia doesn’t appear so optimistic. "I think they continue stealing what's already been stolen. We need to understand what this story will finally lead to," Russian Prime Minister Dmitry Medvedev commented on the move during a meeting with his aides on Monday.
...

http://rt.com/business/bank-cyprus-cut-30-percent-deposits-789/

 

[juleswin]

Up to 40% tax on already taxed money? that should make the hair on the back of your neck rise

 

[angelatc]

Up to 40% tax on already taxed money? that should make the hair on the back of your neck rise

Well, if I understand the deal correctly, they're letting the bad bank fail. The people knew that the amounts over 100,000 euros were not insured. <shrugs> They might consider themselves lucky to be getting anything over their $100k back.