Cyprus Paved the Way For an FDIC-Approved Money Grab
As Cyprus has now shown us, when systemic collapse hits, it hits FAST and FURIOUS.
The quick timeline for Cyprus is as follows:
- June 25, 2012: Cyprus formally requests a bailout from the EU.
- November 24, 2012: Cyprus announces it has reached an agreement with the EU the bailout process once Cyprus banks are examined by EU officials (ballpark estimate of capital needed is €17.5 billion).
- February 25, 2013: Democratic Rally candidate Nicos Anastasiades wins Cypriot election defeating his opponent, an anti-austerity Communist.
- March 16 2013: Cyprus announces the terms of its bail-in: a 6.75% confiscation of accounts under €100,000 and 9.9% for accounts larger than €100,000… a bank holiday is announced.
- March 17 2013: emergency session of Parliament to vote on bailout/bail-in is postponed.
- March 18 2013: Bank holiday extended until March 21 2013.
- March 19 2013: Cyprus parliament rejects bail-in bill.
- March 20 2013: Bank holiday extended until March 26 2013.
- March 24 2013: Cash limits of €100 in withdrawals begin for largest banks in Cyprus.
- March 25 2013: Bail-in deal agreed upon. Those depositors with over €100,000 either lose 40% of their money (Bank of Cyprus) or lose 60% (Laiki).
The most important thing I want you to focus on is the speed of these events.
Cypriot banks formally requested a bailout back in June 2012. The bailout talks took months to perform. And then the entire system came unhinged in one weekend.
One weekend. The process was not gradual. It was sudden and it was total: once it began in earnest, the banks were closed and you couldn’t get your money out (more on this in a moment).
If you think this cannot happen in the US, think again. The FDIC has already proposed legislation that would allow it to TAKE CONTROL OF A BANK IT DEEMS SYSTEMICALLY IMPORTANT AND WRITE DOWN YOUR SAVINGS ACCOUNTS as part of the bail-in.
This power was granted in the 2010 Dodd-Frank bill, although 99% of investors are not aware of it. We’ve just drafted a Special Report outlining the precise legislation as well as the powers of Life and Death it grants the FDIC over YOUR SAVINGS.
To learn more about this legislation… visit us at www.gainspainscapital.com
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