10%... 40%... Now An 80% Confiscation Scheme?

Phoenix Capital Research's picture


The news coming out of Cyprus only gets worse.


It was bad enough that the political class even promoted the idea of STEALING depositors’ savings. But now we’re finding out that they lied time and again about how much they’d take.


Initially the plan in Cyprus was the following:


  • Simply TAKING 6.75% of ALL savings accounts up to the official insurance limit of €100,000
  • A 9.9% levy (THEFT) on all deposits above the official insurance limit of €100,000.


The idea was put to a vote by the Cyprus Government, which rejected it. However, the facts remain that this idea WAS suggested. In fact, the original proposal from Germany and IMF was even more dramatic:


Cyprus state broadcaster CyBC reported on Saturday that German Finance Minister actually entered the Eurogroup meeting on Friday proposing a 40 percent haircut on Cypriot bank accounts. Sarris stated on Saturday that this had also been the proposal of the International Monetary Fund.


Sarris stated in Brussels that in view of the threat from the European Central Bank for banks in Cyprus to shut down and chaos to ensue, the increase in interest taxation and the haircut to bank accounts became necessary. “A disorderly default, that was a genuine possibility, has been averted,” he said.




Please reread that first paragraph: Germany and the IMF wanted to take 40% of all depositors’ accounts. Imagine nearly half of your savings being simply TAKEN one day to bail out a bank. That’s what Germany and the IMF proposed.


And we now find out that it could be far worse than even that:


Cyprus's finance minister said Tuesday that large deposit holders at Cyprus Popular Bank PCL (CPB.CP), the island's second biggest lender, could face losses of as much as 80% on their deposits as the government moves to wind down its operations.


Speaking in a television interview with state broadcaster RIC, Michalis Sarris indicated that it could also take years before those depositors see any of their money returned.


"Realistically, very little will be returned," Mr. Sarris said.





So… first it’s 10% on savings about €100,000… then we find out actually 40% was proposed… and NOW they reveal that realistically it could be as much as 80%.


As a quick aside, anyone who believes this could never happen in the US should consider that John Corzine stole over $1 billion worth of client funds during MF Global’s collapse in the US. Corzine is not in jail and in fact remains one of the most connected financial elites in the US. Indeed, NO ONE went to jail for MF Global’s theft.


There can be little doubt that European elites took note of the MF Global case and believed a similar idea could be foisted upon the European public during extreme times of Crisis. The only difference between MF Global and Cyprus is that in the former case the funds that were stolen were invested in commodity futures and other securities whereas in Cyprus they were savings.


Investors take note: a major development is at hand. As bankrupt nations and banks continue to spiral downward there will be more and more desperate attempts to plug the holes in their balance sheets by any means necessary.  And it will be a LOT more than they claim,


The idea of confiscating savings is now on the table. And under an extreme enough crisis, this idea could indeed be implemented: the proposal will likely be “you, the people of this nation can choose…we can take 7% of your savings and your bank remains afloat or you lose everything.” Be prepared for this.


If you’re an individual investor worried about what Europe’s Crisis really means for your portfolio, we’ve published a FREE Special Report outlining exactly that. It’s titled, What Europe Means For You and Your Savings.


In this report, we outline the risks Europe’s banking crisis holds not only for those in Europe, but for savers around the world. We also explain how this crisis will most likely unfold, including which areas are most at risk in the financial system. And we cap it off by listing multiple backdoor plays on Europe that investors can use to profit from Europe’s Crisis.


You can pick up a FREE copy here:




Thank you for reading!


Graham Summers




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Sockeye's picture

Please update to 100%.


TSA gropee's picture

Cyprus was (at least for me) the canary in the coal mine so to speak. And in my humble opinion, if you're not already moving assets out of a large or any bank for that matter and into something else, whether it be your mattress or whatever, you deserve the fleecing when it comes. The writing is on the wall.

U4 eee aaa's picture

Don't make it paper. It is probably a good time to head down to your local pawn shop and scoop up all the discount jewellry

thewayitis's picture


  Just get the hell outta dodge before theres a mad rush....JMO



U4 eee aaa's picture

So what happens *at the very next election* after these crimes take place? I'm thinking that a swift theft action like this would create an instant party that would step up to prosecute this theft. Am I not seeing something here? These guys might get away with it for a couple years but they do have to go to the polls at some time.

swmnguy's picture

I'll freely admit that I'm a muppet, and I don't know shit about shit.  However, all this stuff is starting to come together looking like a pattern to me.  One of the key "dogs in the night that don't bark" is Corzine.  Why the hell isn't he in jail?  All kinds of connected insiders go to jail, for less than what he did.

So if you'll indulge an amateur, here's a rough timeline of a global bankster coup d'etat I'm seeing:

- 1999: US repeals Glass-Steagall.  Now Banksters can do whatever they want.

- 2000: US enacts Commodities Modernization Act.  Now all "Derivatives," which I come to find is a rather amorphous and all-encompassing term, are not only lawful, but legally exempt from any meaningful oversight.  Which is convenient for any would-be overseers, since they don't understand them anyway.  I barely do, outside the analogy of all the various side-bets one can put down on the Super bowl (1st downs in the first quarter; score at the half; rushing yards allowed in 3rd Quarter; etc.).

- Early 2000's: Rules across the "Developed" world are modified so all "Modern, Advanced" economies have pretty much the same rules.

- Early 2000's: These rules fuel the global explosion of the housing finance bubble, driven by insatiable demand for various derivatives founded in housing finance.

- 2005: Joe Biden's Bankruptcy Bill explicitly classifes derivative counter-parties to be secured creditors, while bank depositors (among others) are unsecured creditors.  Muppets don't mind because they've been brainwashed to believe that the issue the Bill addresses is all their lazy worthless neighbors and in-laws who are buying consumer goods and getting them for free by abusing the Bankruptcy system.  It certainly isn't them, or airline conmpanies, or anyone else who is abusing the system.  And all the other stuff in the bill is hard to understand so just skip it.  Besides, the FDIC will protect me and I don't have any savings anyway so who cares.

- 2007: The housing finance bubble drives house prices so high that muppets can't buy anymore.  This begins to exert downward force on prices, which causes housing-finance-based derivatives to start to go off like a daisy-chain of firecrackers.

- 2007 - 2008: Lehman and Bear Stearns go Ka-Pow.  That one fund "breaks the buck."  Countrywide collapses.  Wachovia, WaMu, IndyMac, GMAC ResCap and others as well.  Whatever.  The accounts are transferred to somebody I can send my mortgage check to.  Sucks that half my credit cards just got cancelled, but whatevs.  The key here is Lehman and Bear.  They didn't have muppet accounts, so it was a perfect test case of the principle that the counterparties can seize the assets first, and there aren't any muppets to complain.

- 2008 - 2009: Aggghhh!  It's the end of the world, maybe!  Just give them whatever they want so the world doesn't end!

- 2011: MF Global collapses and it becomes clear that Jon Corzine took a bunch of farmers' money, invested it in Spanish Bonds (wasn't that a song by The Clash?) and lost it all.  So he just took their money and they have no recourse.  Too bad, so sad.  This one is the key for me.  Why isn't Corzine in Jail?  Because he didn't commit any crimes.  See "2005."  The counterparties (probably Chase) were the secured parties and they got their money.  No problem there.  The farmers using this year's money to lock in this year's prices on next year's grain supplies were unsecured.  They lost all their money.  Tough noogies.  They were unsecured.  This was a big experiment to see if they could seize depositor accounts, and they could.  They had the fig leaf that these were futures speculators though, so outrage was muted.

-2013: This whole Cyprus deal.  Now it's time to use all the rules and (non-) regulations meticulously put into place to seize muppet-money via the banks.  The fig leaf here is that it's all Russian Mob money, and Putin is kind of spooky-lookin' anyway, and Cyprus is small and insignificant and Cypriots are generally kind of shady.  But it's working really well.  The Cypriot banks attracted all kind of money and put it into the same kind of crap as the Greek, Italian and Spanish banks (sold to them lovingly by the global powers from US, UK, Germany, etc.).  Now the big boys want their money back and it looks like they can take it.  Since they gave the Russian mobsters a head-start to get their money out, they can talk tough about the Russkis and the Russkis can talk trash right back but since they got their money out there won't be any long-term consequences to all the trash-talk.

- Next?  Well, that's an interesting question.  Now that we've established that the Banksters can do whatever they want with no oversight or consequences, and they can take whatever they want whenever they want, where would they go next?  Where's a juicy pot of money, stashed in a trusted institution that is actually completely subverted in the global framework, where the government will be compliant and the media will tell the muppets it's all their fault for...something...and they all deserve what's coming to them, and it's probably some despised outsider group's fault really?

As I said before, the key to this whole progression is the fact that Corzine's not in jail.  Because he didn't commit a crime.  Those who are interested might find a little pamphlet by Richard E. Rubenstein, called "The Cunning of History," fascinating.  It basically shows why things like the Holocaust happened, and will probably happen over and over.  This progression I'm sketching out would fit right in.  Basically, you define the laws the way you want, and you can do anything you want to.


Mactheknife's picture

You know what?  That was pretty freakin good for an amateur.  Mark my words...the next thing the banksters are going to want is a cashless society where they never have to wory about a bunch of muppets showing up all at once wanting their money....munch on that a minute.

Cameli's picture

I keep reading this "string them up, heads on poles" rhetoric on ZH. Let me ask any of the bravados here if 10, 20 or 40% was simply removed from your bank account what would you actually do? Go down to JPM, BofA or wherever and shoot up muppet employees? Or maybe you think you could get anywhere near the likes of Dimon?
Let me suggest right now that you would do nothing, nada, zilch. Except sit and stew while venting more empty, hot air rhetoric. The problem here is that as an individual you are pretty powerless. They will string YOU up. The only way to achieve such a course of action is via a huge mob-and I mean huge, not just a few hundred. So how do you plan to orchestrate and execute this strategy? Remember you had better achieve this feat undetected because otherwise they will simply round you up beforehand.
Or do we think that a mob of several thousand armed to the teeth will simply show up by coincidence outside JPM HQ one day and carry this out? I'm genuinely interested in hearing how this is all going to come about because I believe people will just keep swallowing this shit ad infinitum. By way of an example I will cite the Nazis. A lot of Germans were heartily sick of them towards the end but did they string up Hitler? Nope. It took the US, the Brits and the Ruskies to do that.

TheLastMan's picture

Who can make Dimon eat his carats?

therover's picture

The mob can start by burning The Hamptons. 

The Heart's picture

Shucks. Always a day late and a dollar short. Sorry if this vid has already made the rounds here.

This guy has some good ideas around why don't THEY pay!



MassDecep's picture

make sure ya don your anti-drone gear before watching.

Suppressor's picture

Banker defense, from my favorite movie ever, "Animal House".



notadouche's picture

They should quit calling it a "haircut" and call it what it actually is, a "castration".

stiler's picture

yeah, it should badger me first, then others.

El Hosel's picture

When was the last time any Banker went to jail for any crime?  JPM was all over the Madoff ponzi for years, JPM was all over MF Global, JPM was all over Mortgage fraud  and "insurance" on those fraudulent mortgages, JPM was all over hiding the "Whale Trade" Losses, JPM is all over fucking with Metals prices...  Jamie visits the White House every other weekend. WTF!

steveo77's picture

Freedom has been backed into a corner


Fortunately, Freedom is a Badger.

El Hosel's picture

 Sorry Stevo, I don't see no stinking Badgers...  Where they at?

I want to see one grab a banker by the ankle for a 2 point take down, at least.



gina distrusts gov's picture

If I am not mistaken the parliament was under siege, the population would have hung the lot of them had they given in to the banksters and the politicians knew it was a "no bull shit threat"

Westcoastliberal's picture

Seems to me when the Eurozone/IMF fucks came knocking on the Cypriot's door to shake them down, and parliament turned the idea thumbs down, the next step should have been "You assholes have 2 hours to leave the country and if you return you will be arrested". Arrest the bank's directors, junk the Euro and revert to the Cypriot pound, and make like Iceland.

RaceToTheBottom's picture

The Cypriot banks had two reasons why the Ruskies left money there.   They liked to vacation there and the history and getting the money into the EU.  They needed the Cypriot banks to be in the EU

IcantstopthinkingaboutNINJAs's picture

I'm not sure I understand all this...


How many IMF paratroopers descended onto Cyprus?  How big is the IMF's navy, air force and rapid deployment marine forces? 

Apparently Iceland was able to defeat those IMF forces, why couldn't Cyprus?






LawsofPhysics's picture

You sir, are clearly not a liberal, report to your local FEMA camp for re-education.

LongSilverJohn's picture

Did the Banks also freeze access to safe deposit boxes (e.g, holding PMs)....?

semperfi's picture

Sort of - they froze the hinges with liquid nitrogen - hammered them broken off - and accessed the contents of the box.

Herkimer Jerkimer's picture

Follow me…

Think like the Muppet. Be the Muppet. A Cypriot Muppet. (CM)

Let’s game theory and logic path out the dilemma over in Cyprus. The reactions count and let’s see where they go.

The CMs have been fleeced. They’re pissed.

Currently, the Cypriot Muppets cannot take any money out due to capital controls. (CC)

What happens after? The cascading, ripple effects?

Be the Cypriot Muppet.

What are you going to do, the moment the “capital controls” are lifted?

Given the past, and your fear of the future--The ‘restructuring’ or levies happening again.--You will run to the banks and take all YOUR money out.

UNLESS! They reinstate capital controls.

But then they’re (The Cypriot government.) is stuck with problem of allowing the CM’s to get their money? At sometime, the government and TPTB are going to have to release the CCs, in order for the economy to function again, won’t they?

NO. And that is a reasonable and not unforeseeable response, but with that scenario, we’re in la-la land and everything breaks down, as the CM MUST get to their money at some point. So where back to my theory and the CCs are lifted.

What do the CMs do?

They rush to the bank and… Take all their money out.

I won’t go into the details of what happens then, such that TPTB, NEED to have that money back in their banks but can’t impose CCs or that strangles the economy.

The question to be asked then, and this IS the crucial idea of how my theory is going to show how everything is going to blow up: How would you get the CMs to keep or return their money to the banks, with the confidence that the CCs or levies or restructuring wouldn’t be instigated again?

The key component in this question is ‘confidence’, which the CMs don’t have.

Why don’t they have ‘confidence?’ Because they fear a repeat of the past actions.

So the key idea is, how can you reinstate ‘confidence’ into them?

Well, ‘confidence’ is closely related, to the idea of ‘risk.’ There is too much ‘risk’ associated to placing the CMs money back into the banks considering the past actions and therefore, there is no ‘confidence’ that it won’t happen again.

How do you effect the confidence/risk equilibrium?

With good ol’ natural law and natural financial law: Captialism.

In finance terms, there is too much risk, associated with the risk of placing their money back into the banks.

But how can we alleviate this risk to help re-establish the ‘confidence’ of the investor, or at least, raise it? By letting the ‘free market’ establish the ‘price of money’ by the ‘risk premium’, which is also known as…

INTEREST RATES. This is a completely new idea to the depositor, but it will catch on rapidly. “You want my money? Pay me more vig!” This will be the ‘risk premium’ of placing your money in those banks and return on your capital for the ‘risk’ that your are taking on with your money in their hands.

Go here->http://www.businessinsider.com/dijsselbloem-reveals-the-euro-end-game-20...

Nobody is getting this idea that depositers WILL value risk by interest rates

And these interest rates will necessarily have to sky-rocket in order to entice the CMs into depositing their money back into the Cypriot banks. Or the banks are dead, with no liquidity. (Remember that the EU will not print money, and obviously, neither can the Cypriots, unless they leave the EU! Not an un

You can’t argue this logic path. I wish I could. I want to be wrong.

What interest rate do you think, will be enough to establish the associated ‘risk premium’ for the CMs, to alleviate their fear of the further CCs and levies occurring again, to put their money back into the Cypriot banks.

Currently, Cypriot banks are paying… (http://cyprus.deposits.org/)

Bank of Cyprus 1%
Alaiki Bank 0.5%

Not that this is not Cypriot money, but Euros. Remember this, as it is important.

I would dare say, thinking like a Cypriot Muppet, I’d need, a very, VERY large increase in a risk premium, to satisfy my idea of a risk premium, because otherwise, I’d be keeping my money in my mattress, which now holds a ‘mattress premium’ of at least 6%, 10%, 40%?

But also, remember, that the $‡Ï†®@†$ at the top, the sneaky-weasel oligarchs and the elite, have taken their money out of the banks, as I predicted to my 83 year old Muppet Mother on the Saturday this mess exploded.




So there is far, FAR less money in the banks, than what the bank restructuring was based upon, so now, we will probably need to have a larger haircut for the Cypriot Muppets, and therefore a larger risk premium to entice the CMs to place their money back into the banks.

Unless of course, the Cypriot PTB, somehow, screw the CMs, with more CCs.

Control being the operative word, and once you start to control people for the outcome, knowing they will move in other directions, and in manners you can’t always predict, like a balloon being grabbed by a hand, it just squirts out everywhere your fingers aren’t… So you have to instill more controls in a vicious circle.

Capital controls will ultimately, fail. So were left with raising interest rates to bring the capital back to the banks. (Which will kill the Cypriot economy.)

Now bring in the rest of the EU.

What are EU Muppets seeing? What are they thinking? What are they going to be doing, just in case?

This is what they refer to as ‘contagion’.

They will be removing their money, just in case the same crap happens in their countries, from their banks, due to a liquidity crunch, which will precipitate a liquidity crunch!

But if that doesn’t happen, somehow, and the EU Muppets keep their money in their banks, follow the logic path from here.

Now, as an EU Muppet, you’re receiving SFA on your deposits--if they are in the banks--and you look over at those CMs and thinks to yerselfs, “Selfs! Why is I keepin’ my money in the Spanish/Italiian/Portuguese banks, getting SFA, when I can move my money to Cyprus and make tons more?”

Because the TPTB, will instigate CCs to stop this!

Will they? Again, control is about stopping people, and all this CC train is doing is going in the direction of shutting down the macro economies.

Money must flow or… It doesn’t.

So now we have capital flight from the EU banks to the Cypriot Banks due to those juicy interest rates in Cyprus!

Unless! What?…

The EU banks ‘compete’ with the ‘risk premium’ that the Cypriots are offering.

See where this is going?

And what is the US going to do, when the US Muppets look over the pond and see those EU Muppets getting that big fat juicy interest rate?

They are going to turn American dollars into Euros, driving up the price of Euros, and keep them in the EU’s banks.

Tell. Me. I. Am. Wrong.

Tell me that it isn’t going to, or can’t, or won’t be allowed to work out like this, if there is a FREE capital economy. Because if it doesn’t, everything has changed, forever.




Seer's picture

Good discussion about what would happen when controls are taken off.  But...

The "capitalism will save all" angle is kind of a dead-ender.  Capitalism as we know it is based on growth.  And, the only real "growth" mechanism for the Cypriots (regular folk) is NG, and, unless someone is dense or has been under a rock for a long time, NG is HIGHLY political (as is all energy).  Capitalism will hand over the NG to private businesses, most likely the handing-over will be based on back-room dealings, which will ensure a poor outcome- regular folks are going to get fucked (and they'll still likely be under some debt load).  The bankers/EU want, no, NEED/REQUIRE that NG!  And without Russian influence there will be no real counter to a massive raid.

The Cypriots will elect to kick out the EU.  There is no capitalism there EU).  But afterwards where would they find it?  Trading with themselves isn't going to work  Expecting Cyprus to convert the rest of the world to capitalism isn't something that I'd give very high odds to, though I suppose that it's a possibility (I'm just not going to bank on it).

void_ptr's picture

Well at least one problem with that thesis is: banks have to maintain net interest margin > 0. If they're paying depositors high rates of interest, they have to earn even higher rates of interest on their loan book. And there's no way for them to do that. Simply not enough good credit risks willing and able to borrow at high rates of interest.

IcantstopthinkingaboutNINJAs's picture



In which bank did the Cyprus police force keep it's money? 

DosZap's picture

 Herkimer Jerkimer 

Follow me…

Think like the Muppet. Be the Muppet. A Cypriot Muppet. (CM)

Let’s game theory and logic path out the dilemma over in Cyprus. The reactions count and let’s see where they go.


Not adding the rest of your scenario,but excuse me, ISN'T this exactly how they got where they were to begin with?.

Investing in Greek Debt instruments that WERE paying high risk rates of interest?.

Or, maybe I missed something.

hannah's picture

herkjerk....i think you missed THE BIGGEST POINT....THERE ISNT ANY MONEY IN THE BANK YOU IDIOT..!!!!!!!!!!!


that is why they have cap controls. the peons arent pulling 'all their money out' because it is in london .....

dontgoforit's picture

It ain't in London either.  It simply, 'ain't'.

Diogenes's picture

Here is how they used to do it:

1) You can trust the bank because it is regulated by the government, and because your account is insured.

2) Bank examiner goes over books every 3 months to make sure there is no hanky panky. If the bank is insolvent even by 1 Euro, he shuts it down, and a trustee in bankruptcy takes over

3) All Muppets get paid off 100 cents on the dollar and put their money in the other bank across the street.

4) Trustee winds up affairs of bank. Losses are small because the bank examiner shut the place down before things got out of hand. Any loss is taken by the shareholders and if that is not enough, by the bond holders. If necessary what is left is taken care of by the depositors insurance.

5) Bank president and top brass lose their jobs and never work in the finance industry again - provided they followed the rules and just made some foolish mistakes. If criminal intent is found, they are arrested, tried, and thrown in prison.

8) Everyone else who works in the banking industry shudders and resolves not to take any chances in the future.


That is the way it used to work before we decided that work is for suckers and you can borrow money forever and never pay any of it back.

therover's picture

5) Bank president and top brass lose their jobs and never work in the finance industry again - provided they followed the rules and just made some foolish mistakes. If criminal intent is found, they are arrested, tried, and thrown in a MAXIMUM SECURITY prison for a minimum of 20 years.


Slight adjustment to #5  Only problem is, will all the bullshit mumbo jumbo of lawyers and how the rules are written in the financial industry, proving criminal intent is all but impossible when it comes to banksters. Heck, didn't the DOJ give them immunitiy.

NotApplicable's picture

As if that could ever work!

moonstears's picture

Like the flow, +1 but I don't agree completely(i.e. Europeans mostly see a Cyproit problems, Americans only see a Cyproit problem, so far, granted)

hannah's picture

corzine is not in jail because HE IS BETTER THAN WE ARE....... just like brad and angolena and the kardashions...THEY ARE BETTER THAN WE ARE....casey anthony and every celebrity on tv is BETTER THAN WE ARE.....!



semperfi's picture

corzine is not in jail because HE IS THE LAW - the banksters are the law - that is what the new normal is - the old rule of law is gone until we get it back with blood

Seer's picture

Semperfi back (though not to the empire).

"the old rule of law is gone until we get it back with blood"

And what "old rule of law" would that be?  And, would there be "claw-backs?" if so, who is to determine who legitimately has what?

"La Revolucion is like a great love affair. In the beginning, she is a goddess. A holy cause. But... every love affair has a terrible enemy: time. We see her as she is. La Revolucion is not a goddess but a whore. She was never pure, never saintly, never perfect."

- Jack Palance, as 'Jesus Raza', in, 'The Professionals' (1966)

Westcoastliberal's picture

Corzine's not in jail because he was one of King Obama's biggest money-raisers.  They're buds.  And that's the name of that tune.  If you're not in with the "in crowd" you're down, and out.

dontgoforit's picture

Was the 'lost' money ever found?  What a scam-job.

hannah's picture

i think you got it backwards....obama is the puppet and corzine is the king (with the money).

Westcoastliberal's picture

U could be right, Hannah.  By the way, how are your sisters?

hannah's picture

one choked on a turkey leg and died at thanksgiving and the other hung herself when she found out her husband was marrying their daughter....such is life.

pitz's picture

BTW, anyone struck that adherants to Sharia law, which forbids usury, are basically immune to this problem?  Maybe Islam is a better way to go, at least when it comes to dealings with the immoral financial system.

sun tzu's picture

Just because shlomo can't charge you interest doesn't mean shlomo can't steal from your account

Apolitical Blues's picture

I'm of the mind that usury is the ONLY reason there is constant conflict between Muslim nations and those backing the God of Abraham...the money changer, greed and, interest rates!!!

The Second Rule's picture

"Maybe Islam is a better way to go"

Eeyyyahh. I think I'll pass on that one...But thanks for playing!