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Will Russia Kill The Cyprus Bailout?

Tyler Durden's picture





 

While hope appears to still be alive that the Cypriot government will hand over their natural resources to wealthy Russia (or Gazpromia) and all depositors (Russians and Cypriots alike will be saved), we suspect there is a much bigger threat from Russia that has not been discussed. As Monument Securities' Marc Ostwald notes "there's a 50/50 chance Cypriot bailout fails because of the 'massive danger' a large amount of Russian cash flees Cyprus following deposit tax plans." Russia has ~$60 billion exposure to Cyprus, including loans to companies registered in the country and after the haircut 90% of Russian deposits will still be free to leave the country if the levy is approved.

The critical point is that, should this occur (such a large outflow of Russian cash - dwarfing in fact the size of the bailout package itself) it is hard to see how the Cypriot banking system could survive (even with the assistance of the ECB's ELA). Russia's Finance Minister Siluanov expressed disappointment that Russia was not involved in the deal and it is clear that should those outflows leave Cyprus, they are unlikely to end up in other European nation banks.

It seems the pre-emptive contagion and anxiety of this 'levy' have only just begun.

 


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Mon, 03/18/2013 - 08:52 | Link to Comment Chuck Bone
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"...and it is clear that should those outflows leave Cyprus, they are unlikely to end up in other European nation banks."

There's always Switzerland.

Mon, 03/18/2013 - 08:56 | Link to Comment maxmad
maxmad's picture

who would have thunk WW3 would start over Cyprus?  oh well.....

Mon, 03/18/2013 - 09:14 | Link to Comment Thomas
Thomas's picture

Yeah. It's not like somebody shot an arch duke or something.

Mon, 03/18/2013 - 09:15 | Link to Comment SWRichmond
SWRichmond's picture

Imagine the fun if the Russian depositors took their Cyprus cash and bought gold...

Mon, 03/18/2013 - 09:20 | Link to Comment Careless Whisper
Careless Whisper's picture

UFC 159: IMF Mafia Welterwieght Chrissy Diaz-Lagarde v. Russian Mafia Welterwieght Vlad St-Putin

 

Mon, 03/18/2013 - 09:42 | Link to Comment inevitablecollapse
inevitablecollapse's picture

i'd put my hard earned fiat on putin (not that it's worth much anyways) - i mean for crissakes the guy wrestles bears for fun!

Mon, 03/18/2013 - 10:03 | Link to Comment Chupacabra-322
Chupacabra-322's picture

that doesn't change the fact of the Russian Mafia doesn't like being stolen from much less following any NWO Banksters for that matter.

I might add on the Western Front the Global Criminal Cabal (Intelligence/Bankster) Crime Syndicate are about to John Corzine the whole world. Cornzine was just the warm up just to see how much the Criminals could get away with.   

Could this be the future as to why FBI and other alphabet agencies want access to every ones bank account here in Amerika?

A case, forget which one has already been ruled in US Courts about raiding Customer's Segregated Accounts under the guise of wide spread durress.

Mon, 03/18/2013 - 10:42 | Link to Comment Texas Ginslinger
Texas Ginslinger's picture

With the IMF & EU powers forcing the Cyprus tax haven bank account holders (mostly Russian money) to pay the bill  today, it will be interesting to see how the Russian natural gas suppliers squeeze the EU in retaliation.

The EU may have just made a huge mistake.

You don't bite the hand that feeds you gas...

Mon, 03/18/2013 - 11:02 | Link to Comment HoofHearted
HoofHearted's picture

Unintended consequences, bitchez.

"Nobody could have seen this coming....nobody..."

Mon, 03/18/2013 - 11:30 | Link to Comment rqb1
rqb1's picture

They know exactly what they are doing.

Mon, 03/18/2013 - 10:09 | Link to Comment Lmo Mutton
Lmo Mutton's picture

Spank the bitch.

Mon, 03/18/2013 - 09:19 | Link to Comment freewolf7
freewolf7's picture

Cyprus has her black swan suit on, smiling back at us.

Mon, 03/18/2013 - 09:00 | Link to Comment swissaustrian
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or the City of London, or Dubai, or Miami, or the Vatican.

The battle for market share in money laundering is on. Trustees and banksters are ready for the Russians all over the world.

Mon, 03/18/2013 - 09:08 | Link to Comment francis_sawyer
francis_sawyer's picture

Wells Fargo needs to pad its resume...

Mon, 03/18/2013 - 09:02 | Link to Comment insanelysane
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except Swiss bankers have started ratting out their depositors.  There is definitely opportunity out there in this market segment.  I am sure Goldman and JPM have something set up somewhere in the world.

Mon, 03/18/2013 - 09:14 | Link to Comment BLOTTO
BLOTTO's picture

Something special about the island of Cyprus that maybe we dont know about exactly?

.

Geographically, its a strategic location in the middle east.

.

Its been occupied by several major powers during its ancient history...Egyptians, Assyrians, Persians, Romans and Ottoman Empire...

 

Mon, 03/18/2013 - 10:00 | Link to Comment LawsofPhysics
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Not quite; Cyprus is to Russia as the Bahamas are to the U.S.

Mon, 03/18/2013 - 14:37 | Link to Comment Lost Word
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And Cyprus was occupied at one time by the Templars, the first major international banking org.

Mon, 03/18/2013 - 09:50 | Link to Comment Telemakhos
Telemakhos's picture

No, but Latvia is the new Cyprus.  JPM and Goldman have branches (where don't they?), but I doubt they'll see the bulk of the Russian money; it'll disappear untraceably into very opaque, very local institutions.

Mon, 03/18/2013 - 09:08 | Link to Comment EclecticParrot
EclecticParrot's picture

I agree that a Swiss haven may be yesterday's strategy.  Instead, expect a lot of post-haircut funds to be directed to struggling NBA franchises, such as rescuing the Kings for CA and moving them to a new Stadium/Winery combo in the Russian River Valley.

Mon, 03/18/2013 - 09:17 | Link to Comment swissaustrian
swissaustrian's picture

Soccer clubs are great vehicles, too.

Portugese and Spanish clubs are used for South American drug money laundering.

German, English and Swiss clubs are the Russian and central Asian favorites.

The Russian league itself is the outflow mechanism. That's why their clubs are buying so many overpriced South American players.

Mon, 03/18/2013 - 15:47 | Link to Comment Mountainview
Mountainview's picture

Do you really believe, Russian have their money in Cypriot savings accounts...I suppose They use Cyprus as an intermediary platform, where probabely informed on the issue before all the others...and have moved on to circumvent the EU measures..

Mon, 03/18/2013 - 08:52 | Link to Comment MsCreant
MsCreant's picture

DOA. 

At least their dictator has some balls. 

Mon, 03/18/2013 - 09:02 | Link to Comment HD
Mon, 03/18/2013 - 08:54 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Indeed the best solution is suggested above

Cyprus dumps the euro, leaves the EU and aligns with Russia

What the EU itself should be doing if it had a brain ... Hello, Moscow, Good riddance to the USA and Nato

Mon, 03/18/2013 - 08:54 | Link to Comment SeverinSlade
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Russian oligarchs no happy.

Mon, 03/18/2013 - 09:03 | Link to Comment swissaustrian
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The Eurocrats don't want the dominoe effect of one country leaving. The Cyprian government should call their bluff.

Mon, 03/18/2013 - 14:43 | Link to Comment Lost Word
Lost Word's picture

Russia and the West are two sides of the same NWO, only a contest to see which side becomes the leader of the NWO.

Mon, 03/18/2013 - 09:09 | Link to Comment lotusblue
lotusblue's picture

Bank guy in Brussels,

              don't you think this case of,"the devil you know is better than the devil you don't" ? Granted,Soviet/communist era is way past but Putin surely will be tempted to use the 50-60 bil in Cyprus to bolster himself politically and as personel piggy-bank.

Mon, 03/18/2013 - 09:15 | Link to Comment BurningFuld
BurningFuld's picture

You are right about the Devil you know. Because you already know the USA is 100% corrupt. What if Russia was only 90% corrupt? You would have no idea what they would do next...what if they actually helped out their citizens?  You just can't have an unknown like that hanging over your head.

Mon, 03/18/2013 - 09:11 | Link to Comment francis_sawyer
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It's like playing Tropico... YOU RULE bitchez!

~~~

http://en.wikipedia.org/wiki/Tropico

Mon, 03/18/2013 - 12:24 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

Tropico was a close second to Sid Meier's Pirates! for me, I guess ultimately I rather be the guy stealing from the rich than the other way around.

Mon, 03/18/2013 - 09:23 | Link to Comment Ghordius
Ghordius's picture

"Cyprus dumps the euro, leaves the EU and aligns with Russia" - have you asked the Cypriots if they want this?

I get it, you do have a little problem with the American Empire, and yes, I can understand your frustration with the government of our American cousins of the (mostly) naive, innocent persuasion, but I, for my side, am not willing to forsake several generation of alliance for a very doubtful full embrace of the proto-fascist dictatorial approach of Mother Russia. I like Russia, I like Russians, but let's say I prefer to keep options open

the vicinity to Brussels seems to distort your views and attitudes, imho, both versus the western part as versus the eastern part of the alliance

Mon, 03/18/2013 - 10:14 | Link to Comment Shylockracy
Shylockracy's picture

Remember, Ghordius, geography and demography are destiny. Eurasia is the Heartland, as McKinder put it, and the only possible successor to the dying American order.

Btw, prey tell, who on earth is the "we" you have in mind when you refer approvingly to "the government of our American cousins"? I am still to meet any moral and decent American who underwrites his government with the nonchalance you do. But again, for an appologist of Little Brother (European Soviet Union), Big Brother (US Gov) cannot seem that foreign.

Mon, 03/18/2013 - 13:24 | Link to Comment Ghordius
Ghordius's picture

do I underwrite governments (plural) that engage in treaties? perhaps. does this make me an apologist? only if I write something I don't believe

Mon, 03/18/2013 - 12:26 | Link to Comment Panafrican Funk...
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Given that one side of the fight (UK/US) doesn't appear to be any morally better than the other side (Russia/China), I would say, whoever is giving you the better deal, go with them.  

Mon, 03/18/2013 - 14:32 | Link to Comment Non Passaran
Non Passaran's picture

Have the eurocrats asked the Cypriots anything? They say they gave Cyprus an ultimatum, "the Greek style".

And speaking of proto-fascism, the EU fits the bill perfectly (and the US isn't too far behind).

Mon, 03/18/2013 - 09:16 | Link to Comment wagthetails
wagthetails's picture

Is EU still wanting to make fuck?

Mon, 03/18/2013 - 10:32 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Agreed. Yesterday I blogged that Cyprus accept a gold-backed Ruble, and the naval port, to safeguard their share of the huge gas reserves offshore, that Gazprom can help them develop. Now THAT would be a "Take A Long Walk Off A Short Cyprus Pier!", you EU and IMF scum!

Mon, 03/18/2013 - 08:54 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Looks like Vlad might take his ball and go home......can he do that?

Mon, 03/18/2013 - 09:09 | Link to Comment ATM
ATM's picture

Nope. Vlad is stuck. When he goes to withdraw his money the teller will ask him to wait a moment while she gets the manager.

The manager will explain that there is a slight problem and he cannot take his cash today. Please comeback tomorrow.....

Mon, 03/18/2013 - 09:33 | Link to Comment grunk
grunk's picture

And Vlad tells the manager that he will be back tomorrow with the manager's kids.

If he makes a 100% withdrawal, you get 100% of your children.

 

 

Mon, 03/18/2013 - 10:15 | Link to Comment ATM
ATM's picture

The kids will be dead either way. 

Mon, 03/18/2013 - 10:29 | Link to Comment Hughing
Hughing's picture

I think you onto the problem. The deal is desinged to keep Russia from controlling Cyprus. How Europe doesn't have 20 billion sitting around or on a Fedex truck is baffling.  The Russians are for real, not the candy ass passive agressive sh#t from Brussels.

Mon, 03/18/2013 - 14:47 | Link to Comment Lost Word
Lost Word's picture

The old Cold War could turn Hot.

More MAD threats.

More money theft for Military Industrial Banksters.

Mon, 03/18/2013 - 15:53 | Link to Comment Mountainview
Mountainview's picture

Most  the Moscow money is with Cyprus subsidaries of USbanks...and they probabely advised how to handle the issue in advance..

Mon, 03/18/2013 - 09:17 | Link to Comment Sheeple Shepard
Sheeple Shepard's picture

I doubt it, that would just be too much! They could, however, as a next best option "dispatch a permanent fleet of five or six combat ships to the Mediterranean Sea..."

 

 

http://www.zerohedge.com/news/2013-03-17/russia-sending-permanent-warshi...

Mon, 03/18/2013 - 08:55 | Link to Comment pan
pan's picture

I kind of like Putin right now.

 

Mon, 03/18/2013 - 08:57 | Link to Comment Pool Shark
Pool Shark's picture

 

 

Enemy of my enemy?...

 

Mon, 03/18/2013 - 08:59 | Link to Comment pan
pan's picture

Exactly!

Mon, 03/18/2013 - 08:57 | Link to Comment Dr. No
Dr. No's picture

I am not against the tax.  The savings tax is better than a tax payer bailout.  Eventhough banks have a long history of criminal activity, people for some strange reason trust them.  Why should tax payers fund gullible people?

Mon, 03/18/2013 - 09:00 | Link to Comment Pool Shark
Pool Shark's picture

 

 

Why should tax payers fund gullible people?

They shouldn't.

The loss should be bourne by the bank's bondholders.

 

Mon, 03/18/2013 - 09:12 | Link to Comment LawsofPhysics
LawsofPhysics's picture

or the bank's owners and management.  Leadership (or lack thereof) is at always at fault, but never seems to pay the consequences.  They steal your savings and keep all their wealth, bull fucking shit.  Oh well, that which cannot be sustained, won't be.

Mon, 03/18/2013 - 10:43 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

LoP, for an 'Aggie' you know way too much. What did you do in your previous life? :-)

Mon, 03/18/2013 - 18:28 | Link to Comment Totentänzerlied
Totentänzerlied's picture

"Leadership (or lack thereof) is at always at fault"

Never in any way the fault of those who chose and supported and often continue to defend those leaders. If people are really so totally helpless and inept that they never bear any responsbility whatsoever for having bad leaders, this necessarily implies that they will always have bad leaders and have no hope of ever improving their situation.

So which is it? They're slaves because they're servile, or they're servile because they're slaves?

Mon, 03/18/2013 - 09:15 | Link to Comment Dr. No
Dr. No's picture

Why would criminals force themselves to pay?  They can just shear the sheep without consequnce.

Mon, 03/18/2013 - 09:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Yes I think more people SHOULD trust the Maniacal Monetizer criminals and put all their funds within their grasp! Then I won't need to be robbed so much!

Mon, 03/18/2013 - 09:01 | Link to Comment swissaustrian
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Naive position imho. Most of the big money has left Cyprus long ago. Small foreign fish and domestic depositors are fitting the bill.

Mon, 03/18/2013 - 09:02 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

A little despotism isn't all that bad really.

Mon, 03/18/2013 - 09:13 | Link to Comment fuu
fuu's picture

Just the tip ain't really sex.

Mon, 03/18/2013 - 09:17 | Link to Comment Sheeple Shepard
Sheeple Shepard's picture

 

 

Mon, 03/18/2013 - 09:11 | Link to Comment Dr. No
Dr. No's picture

What is with all the hate?  IN the Depression, banks closed their doors.  People took a 100% haircut.  9% is looking pretty good in my grandma's eyes.  She never stored money in a bank after that.  I guess people are looking for uncle sugar to protect them.

Mon, 03/18/2013 - 09:44 | Link to Comment Archduke
Archduke's picture

it's also not a haircut, but a buy back, a repo.
though it's certainly undemocratic and arbitrary.

Mon, 03/18/2013 - 14:28 | Link to Comment Non Passaran
Non Passaran's picture

What hate?

The scumbags took the depositors' deposit insurance money based on laws enacted by the government.

So, where are the fucking deposits and how would it be "fair" if they got 90 or so cents on the dollar? Was that the deal? 

Mon, 03/18/2013 - 08:57 | Link to Comment chunga
chunga's picture

This is what they teach boys and girls in Russia.

This is my rifle, there are many like it but this one is mine.

Mon, 03/18/2013 - 09:03 | Link to Comment Dr. No
Dr. No's picture

Interesting video.  America is weak.  Russians teach this stuff, meanwhile we suspend girls for hello kitty bubble guns.

"everyday I am in this room, I get weaker.....Everyday Charlie squats in the bush, he gets stronger."

Mon, 03/18/2013 - 09:26 | Link to Comment The Heart
The Heart's picture

This is what they teach boys and girls in Russia.

This is my rifle, there are many like it but this one is mine.

Sad thing is, if you showed that gun to most of Americas youth today, it would scare the ba-doodle out of them after the demonization of the tool it is has been so hyped up in the USA. Makes one wonder if this has been done on purpose.

Mon, 03/18/2013 - 10:18 | Link to Comment NoWayJose
NoWayJose's picture

Nearly every gun owner I know teaches their children how to tell if a gun is loaded, and how to handle it safely. The most dangerous thing about guns is when an untrained person picks one up.

Mon, 03/18/2013 - 08:58 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Russia?  The same Russia run by the mafia?  Cyprus is a clearing house for mob money.  Russia's response will be something like this; http://www.youtube.com/watch?v=5ydqjqZ_3oc

 

Mon, 03/18/2013 - 09:01 | Link to Comment SheepDog-One
SheepDog-One's picture

Oh noooo just leave your money there in the grasp of the EU criminal banksters! It's PERFECTLY SAFE! Why would anyone want to close their account? All is WELL, they've GOT this shit I tell ya!

Mon, 03/18/2013 - 09:01 | Link to Comment EL INDIO
EL INDIO's picture

This is the spark,

After nearly two years of consolidation, it looks like we have a break out.

This could be it guys, the one that takes Gold above $2000 and Silver above $50.

Mon, 03/18/2013 - 09:01 | Link to Comment falak pema
falak pema's picture

the Nato counrties will never allow EU to walk away from CYprus and let it be a russian colony; no way. 

Just read the history of Cyprus its been bone of contention between west and east since Haroun al rashid captured it from Byzantium. Its been a bone of contention during each east/west stand off.

Mon, 03/18/2013 - 09:09 | Link to Comment swissaustrian
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Don't forget about all the natural gas off shore...

Mon, 03/18/2013 - 09:05 | Link to Comment Theta_Burn
Theta_Burn's picture

There was a time, not long ago that China would announce support, seems even the Chinese are finished with the miss-allocation booze cruze...

I'm really surprised that nothing is burning in Cyprus

Mon, 03/18/2013 - 09:05 | Link to Comment Inthemix96
Inthemix96's picture

I would be far happier if the Russians and Mr Putin would kill the bankers and politicians who cause so much of the fucking damage in the first place.

Go ahead Mr Putin.

Make my fucking day.

Mon, 03/18/2013 - 09:12 | Link to Comment Winston Churchill
Winston Churchill's picture

Spetznatz on the way as we speak.

Mon, 03/18/2013 - 09:16 | Link to Comment Inthemix96
Inthemix96's picture

Tally hoe winston.

Make it painfull boys, stick a mains voltage powered 240v tazer with 10 meters of cord, a broom handle and a kitchen fork.

Apply liberally to the balls and sack region, repeat as necesary.

Nice.        ;-)

Mon, 03/18/2013 - 09:05 | Link to Comment TooBearish
TooBearish's picture

Cyproit Capital controls = russian embargo

Mon, 03/18/2013 - 09:08 | Link to Comment Yikes
Yikes's picture

The critical point is that, should this occur (such a large outflow of Russian cash - dwarfing in fact the size of the bailout package itself) it is hard to see how the Cypriot banking system could survive

 

Russia has the same problem as China has with UST- There ain't no money. If they try to collect, they'll get pennies on the dollar.  In the short term, Russia is stuck.  Long term.....By Cyprus.

 

 

Mon, 03/18/2013 - 09:14 | Link to Comment Theta_Burn
Theta_Burn's picture

The only thing of Russia's thats stuck is their foot up EU ass...

Whoever came up with this solution fucked up big-time

Mon, 03/18/2013 - 09:09 | Link to Comment StavropolJames
StavropolJames's picture

Russia should;

1.  withdraw all their money from Cyprus because it's not safe,

2.  sell the Euros and,

3.  buy gold bullion.

This is the ol' one, two, three punch.  Once the EU's nose has been bloodied, they'll come off their high perch and negotiate instead of dictate.

 

 

 

 

Mon, 03/18/2013 - 10:49 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

LMAO! Russia doesn't 'buy' gold. They fucking mine it!

Mon, 03/18/2013 - 09:14 | Link to Comment Savvy
Savvy's picture

How long before Obama decides it's a good idea? Isn't he from Keynesia? This is fascinating, the idea that banks can take what they like from savings accounts to cover their idiocy, it's like the Sentinel ruling without the lawyers.

Mon, 03/18/2013 - 09:19 | Link to Comment SheepDog-One
SheepDog-One's picture

I just laugh when people say 'legal' this and that...they still just don't get the nature of the Maniacal Monetizing central plansters...they'll all be like Cyprian depositors one morning and be left with FAR more than 10% losses. 

Let em call a lawyer then! Good luck with all that...

Mon, 03/18/2013 - 10:16 | Link to Comment ITrustMyGut
ITrustMyGut's picture

so truew.. there is no legal recourse when the whole freaking system is owned and operated by the oligarchs...

like the fabled restore america farce... ya...

 

some world court has authority over the those above the law? dont hold yer breath...

Mon, 03/18/2013 - 09:16 | Link to Comment Quinvarius
Quinvarius's picture

I don't think it matters what they do now.  The veil has lifted.  Money in a bank is someone else's money.

Mon, 03/18/2013 - 09:27 | Link to Comment Ghordius
Ghordius's picture

Money in a bank is money lent to a bank, and so in possession of the bank. after all, a bank lends it further. which makes the possession of a creditor

Mon, 03/18/2013 - 10:11 | Link to Comment fudge
fudge's picture

'after all, a bank lends it further'

Which might not be a bad thing if they only lent it once after they grubby claws on it ,but that's not the case is it.

.

 

Mon, 03/18/2013 - 10:13 | Link to Comment Sandmann
Sandmann's picture

Not true. A Deposit is the Bank's Money for which the Depositor receives a Credit and the Bank books a Debit, but if the Depositor then issues a Bill of Exchange known as a Legal Draft = Cheque against that Deposit and the Cheque bounces because the Bank has appropriated 6.75% Balance in an Insured Institution. Who then has the legal liability for the criminal offence of issuimng an Uncovered Cheque ?

Mon, 03/18/2013 - 13:06 | Link to Comment SDShack
SDShack's picture

Correct, the key is the deposits are in an Insured Institution. This implies government oversite and regulation, with adequate controls for the depositer should the bank fail. In the US, this has been the standard since the Great Depression. The proper course should be that the regulators identify the failed bank BEFORE it collapses. The bank is then placed in receivership and the debts and accounts allocated and paid according to established bankruptcy law in an ORDERLY fashion.

All this has been destroyed beginning in 2008 because of TBTF, which has its roots in the elimination of Glass Steagall years earlier, allowing the mingling of Investment and Retail banks. There was simply no way the Investment Bank 40:1 leverage could be contained without stealing protected/insured deposits. Every bank crisis since has resulted in re-writing bankruptcy law to accomodate TBTF. The result is never ending bailouts, and confiscation of wealth of either depositers, or protected bondholders, to save equity holders. GM is a perfect example. What should be clear to every investor, is that there are no rules or protections for savers. Implied or even written intent when you opened your account is not even worth the paper it is printed on, because the government will change the rules retroactively at will. The only way to avoid being taken, is not to play the game.

Mon, 03/18/2013 - 13:22 | Link to Comment Ghordius
Ghordius's picture

+1 to both of you - is nevertheless my original comment wrong or just too simple? Good reminder of Glass Steagall, btw

Mon, 03/18/2013 - 19:19 | Link to Comment Totentänzerlied
Totentänzerlied's picture

"The only way to avoid being taken, is not to play the game."

EXACTLY.

You put your money in a fictional reserve bank, you assume the risk that you'll never get it back. You CANNOT eliminate risk, full stop. But it seems that those of us who know anything at all about how fractional reserve banks really work are in the extreme minority, and the rest of the population thinks the bank just takes their hard earned money and stashes 100% of it in the back vault until the depositor comes to claim it again, end of story, zero risk involved.

These people need to wake the fuck up. Western governments have spent a century trying to hide all risk via total centralization of political, economic, and social control, and judging by the average person's attitudes toward risks like bank failure, they've done a damn good job. Those risks will remain hidden, until they don't.

Mon, 03/18/2013 - 09:22 | Link to Comment Roandavid
Roandavid's picture

To quote Barry Ritholz, 

"This is not about punishing savers. It is about a 1 million person island that has become a tax haven for Russian oligarchs. It is not another MF Global. No one is confiscating."

Mon, 03/18/2013 - 09:39 | Link to Comment fuu
fuu's picture

Ritholz is a whore.

Mon, 03/18/2013 - 10:10 | Link to Comment Sandmann
Sandmann's picture

MF Global was an unpunished crime by a Master Criminal.

Mon, 03/18/2013 - 14:21 | Link to Comment Non Passaran
Non Passaran's picture

I'm surprised to hear such nonense from the usually coherent BR

Mon, 03/18/2013 - 09:23 | Link to Comment Herdee
Herdee's picture

Who then is able,can stand up to and take the proceeds from the CIA money laundering operations that go through New York Banks? Apply those hundreds of billions to the deficit. No different in the good old USA is it?Na,we'll just shake down those pesky Russians a little.

Mon, 03/18/2013 - 10:33 | Link to Comment DUNTHAT
DUNTHAT's picture

The Vatican bank is back in business........

Mon, 03/18/2013 - 09:32 | Link to Comment Whoa Dammit
Whoa Dammit's picture

Ironic that we have to hope the Russians will save us from our bankers isn't it?

I think our numbskull greedy bankers have just now figured out that it won't only be Russian money in Cypress that will be leaving,  all of the Russian money that props up the rest of Europe will be leaving along with it.

Mon, 03/18/2013 - 09:29 | Link to Comment grunk
grunk's picture

We kill the bailout 

or

We kill you.

Choose wisely.

- Vlad

Mon, 03/18/2013 - 09:33 | Link to Comment JPMorgan
JPMorgan's picture

I give my condolences in advance to the fools who try to steal money from the Russians in broad daylight and think they can walk away unscathed and without consequences.

Mon, 03/18/2013 - 10:12 | Link to Comment ITrustMyGut
ITrustMyGut's picture

yes, Ive read some stuff suggesting this was really about confiscsting russian deposits in cyprus..

 

recall.. z. Brezinski was a early "mentor" to obummer..  Z Big.."grand chessboard"..

his mortal "enemy".. russia...  this smells of his influence...

Mon, 03/18/2013 - 09:43 | Link to Comment ekm
ekm's picture

This is all and all about the russian base in Syria. They want it so badly. Nato seems to be saying no, hence financial war ensued.

Mon, 03/18/2013 - 09:54 | Link to Comment Savvy
Savvy's picture

I was thinking it was about the 21 tons of heroin Russia seized in Afghanistan.

Mon, 03/18/2013 - 10:09 | Link to Comment Sandmann
Sandmann's picture

Is that "analysis" or just gibberish ? It is probably all about crackpot thinking

Mon, 03/18/2013 - 10:40 | Link to Comment ekm
ekm's picture

If russians had no military in the area, nobody would care about them.

How would they fuel and service their navy without a base?

Mon, 03/18/2013 - 10:26 | Link to Comment Pasadena Phil
Pasadena Phil's picture

I'm sure that is a big part of it but it's also important to remember that Cyprus is where dirty money gets laundered. It's being reported that 60-70% of those deposits are from Russian oligarchs hiding money.

It's interesting to me that Merkel is being blamed for this. Whether or not that is part of it, I don't think it is, there is a mindset in the media that is having trouble processing all of the facts. IMHO, all of this one-world globalist government is about dirty money taking over the world.

Mon, 03/18/2013 - 10:48 | Link to Comment ekm
ekm's picture

That is well known, however europeans have not intervened due to Russia being..........Russia, military power.

Mon, 03/18/2013 - 10:23 | Link to Comment Lmo Mutton
Lmo Mutton's picture

So do the Russians have hot chicks that walk around with AK's?

Mon, 03/18/2013 - 10:58 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

People who lack means, brains or imagination, tend to use force as a first resort.

Prediction: A group of Russian investors to assume Cyprus bank debt, in exchange for rights to devel offshore gas reserves. To be led by Gazprom, and have Cypriot national participation.

RT, Gazprom, Gospodin Putin: Your ball.

ECB, IMF: Please come to Cyprus and take long walk. Off A short pier.

Mon, 03/18/2013 - 11:11 | Link to Comment StychoKiller
StychoKiller's picture

Hmm, so the ECB (etc) is playing Russian Roulette (how many chambers have live rounds in them?)

Mon, 03/18/2013 - 12:43 | Link to Comment Ensowatt
Ensowatt's picture

I don't think this has been mentioned... perhaps this move by Western Bankers is in response to Putin signing a law banning foreign banks on March 6th.   This may have something to do with banning Rothschild banks from Russia...?

http://indrus.in/news/2013/03/18/putin_signs_law_banning_foreign_banks_f...

Mon, 03/18/2013 - 13:34 | Link to Comment Golden_Rule
Golden_Rule's picture

lol, confiscate $6bln only to have $60bln flee the country.  Winning!

Mon, 03/18/2013 - 17:41 | Link to Comment Sokhmate
Sokhmate's picture

I'm waiting to hear Boris' commentary. Boris? Boris?

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