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Cyprus Popular Bank To Be Shuttered (UPDATE: Central Bank Denies)

Tyler Durden's picture


UPDATE: Cyprus Central Bank says hasn't been informed of closure (and then back-pedals)...



Refuting earlier comments from the regulator that Cyprus Popular Bank would not be shuttered, CYBC is reporting (following the failure to sell it to the Russians) that the bank is to be shut down, split into good-bank-bad-bank, and that deposits under EUR100,000 will be protected.


Of course, we await the re-refutation but for now it seems the latest news trumps the regulators 'lies' earlier.


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Thu, 03/21/2013 - 11:39 | 3357307 slaughterer
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+20 ES

Thu, 03/21/2013 - 11:41 | 3357327 Banksters
Banksters's picture

Bank Holiday= All your money are ours


The banksters

Thu, 03/21/2013 - 11:42 | 3357335 Say What Again
Say What Again's picture

Kaufen Den Verdammten Dip

Thu, 03/21/2013 - 11:44 | 3357353 Divided States ...
Divided States of America's picture

Its guaranteed till the next headline comes out saying it isnt.

Thu, 03/21/2013 - 11:46 | 3357361 Say What Again
Say What Again's picture

Savings account & counterparty risk

It can't happen here!!!

Thu, 03/21/2013 - 11:47 | 3357369 The Juggernaut
The Juggernaut's picture

An official run on the bank.

Thu, 03/21/2013 - 12:07 | 3357467 TruthInSunshine
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Many Cyprus Banks to be foreclosed upon by European Central Fractional Fiat Reserve Bank & converted into blood, tissue & organ banks.


Thu, 03/21/2013 - 12:13 | 3357526 Texas Ginslinger
Texas Ginslinger's picture

I expect to see in the news soon that a Russian group has bought a Cyprus bank.

If you can't fix it - fuck it..!!!

Thu, 03/21/2013 - 11:52 | 3357399 McMolotov
McMolotov's picture

They are destroying whatever trust people had in the banking system. I don't see how they can possibly contain the damage at this point.

I hope to hell people across Europe (and indeed the world) are paying attention to what's being done to Cyprus and taking steps to prepare themselves accordingly.

Thu, 03/21/2013 - 11:56 | 3357420 Abraxas
Abraxas's picture

I'm taking the steps. I upgraded my plasma TV so I can better see the misery.

Thu, 03/21/2013 - 11:59 | 3357436 Say What Again
Say What Again's picture


Thu, 03/21/2013 - 12:03 | 3357473 McMolotov
McMolotov's picture

My Schadenfreude fever is gone thanks to the cowbell, by the way, but it's been replaced by a sense of impending doom.

Thu, 03/21/2013 - 12:18 | 3357564 mick_richfield
mick_richfield's picture


Thu, 03/21/2013 - 11:56 | 3357422 Dr. Richard Head
Dr. Richard Head's picture

Thanks to fractional reserve banking, rehypothication, derivatives, ZIRP, QE for-eva, discount window, etc, there is no "safe" bank anymore.

Thu, 03/21/2013 - 12:52 | 3357747 Bastiat
Bastiat's picture

As banks go, I like Republic, though just for bill paying and I'll be re-doing my diligence. 

Thu, 03/21/2013 - 12:00 | 3357433 Cognitive Dissonance
Cognitive Dissonance's picture

"They are destroying whatever trust people had in the banking system."

I agree with you, but only up to a point. I have consistently been surprised by the level and degree of denial held by the average Joe.

When a body of people (meaning as individuals and as a herd/collective) are completely dependent upon a system nearly all will support that system to the end.....even when they know that the system is killing them.

That after all is the very definition of dependency.

Thu, 03/21/2013 - 12:38 | 3357686 Tinky
Tinky's picture

While you are correct, I'd add that tremendous inertia has been created over many decades, and that, coupled with powerful, resulting normalcy bias, is a major psychological impediment as well.

Thu, 03/21/2013 - 12:56 | 3357763 Cognitive Dissonance
Cognitive Dissonance's picture

You and I are both describing the various components of the overall denial.

Thu, 03/21/2013 - 12:02 | 3357458 slightlyskeptical
slightlyskeptical's picture

Doesn't all of ZH want the banks to be forced to go belly up as they should? I think it is a start in the right direction. The rule of law must prevail or all trust is gone. Recovery comes very fast.

Thu, 03/21/2013 - 12:21 | 3357585 mick_richfield
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The whole concept of fiat currency has to die.

Forcible currency and the rule of law cannot coexist.

Thu, 03/21/2013 - 12:15 | 3357539 ziggy59
ziggy59's picture

I agree and hope too, unfortunately most people think it cant and wont happen to them, again, for the umpteenth time

Thu, 03/21/2013 - 12:08 | 3357495 butchee
butchee's picture

KDVD,  Hundinnen!

Thu, 03/21/2013 - 16:29 | 3359088 Buck Johnson
Buck Johnson's picture

This still won't protect them from money being taken from all their accounts once the bank opens (why do you think they keep stalling opening the bank, they know that no matter what deal is done people will take their money out).  So even if they did come up with the money, the bank will lose more from the outflow and will be insolvent anyway, they should get out of the euro and get their own currency.

Thu, 03/21/2013 - 11:42 | 3357329 redpill
redpill's picture

Not too fucking Popular now, is it.

Have fun with the ruskies!

Thu, 03/21/2013 - 12:06 | 3357484 riley martini
riley martini's picture

 Capitalism is fun if it applies to everyone equally not like the selective theft in the USA ad EU . The Brits have the most deposits in Cryprus Banks or is that had.

Thu, 03/21/2013 - 11:44 | 3357350 johngaltfla
johngaltfla's picture

For a banking crisis, this is small change for the EU. However, the real story is not the banksters, but Royal Dutch Shell, British Petroleum, Total Fina, Gazprom, etc. This is about controlling the natural resources of the Greek Cypriot people and keeping them enslaved to the new wolrd order system of central banking.


The Cyprus Crisis: It Isn’t what it Seems

Thu, 03/21/2013 - 11:51 | 3357396 redpill
redpill's picture

The real story is that the room is suddenly full of the scent of Stoli, cigars, Kalashnikovs, and miniature giraffes on treadmills.

Thu, 03/21/2013 - 11:53 | 3357402 johngaltfla
johngaltfla's picture

The bitchez at Petsmart refuse to import any of those mini-giraffes for me. So I shorted them. :)

Thu, 03/21/2013 - 13:34 | 3358010 TraderTimm
TraderTimm's picture

"It's a bank holiday in Cyprus, where bankers dress in black / It's a bank holiday in Cyprus, where you'll lose your fiat and CrrraaaaaaaaaACK!"

Apologies to the Dead Kennedys.

Thu, 03/21/2013 - 11:39 | 3357308 GolfHatesMe
GolfHatesMe's picture

Resolution Trust Bitchezzz

Thu, 03/21/2013 - 12:32 | 3357654 dot_bust
dot_bust's picture

Ever notice how a lot of U.S. banks end with the word, trust? Makes me shiver just a little bit.

Thu, 03/21/2013 - 13:09 | 3357818 Go Tribe
Go Tribe's picture

Or how about "savings bank"? That one makes me laugh out loud.

Thu, 03/21/2013 - 15:18 | 3358692 dot_bust
dot_bust's picture

I agree. Sounds like the word, savings, has taken on a whole new reverse savings. :)

Thu, 03/21/2013 - 11:40 | 3357318 Lost Wages
Lost Wages's picture

FIXED! Next problem?

Thu, 03/21/2013 - 11:41 | 3357321 kliguy38
kliguy38's picture

Here's the two cents in assets sheeples.........get some gyros and beans and LIKE IT PUNKS!

Thu, 03/21/2013 - 11:41 | 3357322 CrashisOptimistic
CrashisOptimistic's picture


Good bank/bad bank means nothing.  The ECB has to extend emergency liquidity to this bank, provided they open their doors before Monday (inside the ultimatum).

That means Russian depositors get a flow of money from the ECB.  Isn't that nice?

Thu, 03/21/2013 - 11:42 | 3357331 Nothing To See Here
Nothing To See Here's picture

Got an insolvent bank? No problem. We of the governments, we can make her liabilities disappear and taddam!, all that remains is a "good bank". Now, you can keep lending recklessly to us. And don't ask questions.

Thu, 03/21/2013 - 11:42 | 3357332 Super Broccoli
Super Broccoli's picture

sounds like the russians are not going to like it

Thu, 03/21/2013 - 11:53 | 3357405 Bobportlandor
Bobportlandor's picture

Yep 100,000 and up. I suspect there's 100k accounts being created lickety-split before tues.

Thu, 03/21/2013 - 11:56 | 3357423 e-recep
e-recep's picture

The Cyprus Chainsaw Massacre?

Thu, 03/21/2013 - 11:42 | 3357338 NoDebt
NoDebt's picture

So this is now "Plan D"?  I'm losing track.  I just read about "Plan C".  I assume this must be D.  When they hit "F", buy like mad.

Thu, 03/21/2013 - 11:43 | 3357339 francis_sawyer
francis_sawyer's picture

These 'regulators' must have attended BernanQE's "I can fix this in 15 minutes" seminar...


I hear there was a line at the jelly donut table during the food breaks...

Thu, 03/21/2013 - 13:54 | 3358132 Crash Overide
Crash Overide's picture

These 'regulators' must have attended BernanQE's "I can fix this in 15 minutes"seminar...


Didn't Uncle Ben just send over a couple hundred billion to prop up the EU a few weeks ago? WTF?

Thu, 03/21/2013 - 11:43 | 3357340 Super Broccoli
Super Broccoli's picture

by the way what are those 100K€ garanteed by ? Cyprus state ? LOL

Thu, 03/21/2013 - 11:44 | 3357348 Yen Cross
Yen Cross's picture

    One of the first F/X accounts I had was Cyprus based and used Popular Bank to handle their business. I'm glad I switched brokers back when the CFTC cracked down. I would have been screwed up the wazzoo.

Thu, 03/21/2013 - 11:44 | 3357351 BlackMagician
BlackMagician's picture

Does it matter at this point? Because...when those banks open...folks will run in and withdrawn their money NO MATTER WHAT at this point.

Thu, 03/21/2013 - 11:57 | 3357412 francis_sawyer
francis_sawyer's picture

Seriously ~ & OTOH, if they DON'T, & just go back to business as usual, the banksters will have scored a 'pyrrhic' victory [because it will give them a real life indication of just how stupid & mollified the sheep actually are]... Fucking Hindu cows who couldn't point out Cyprus on a map, but can tell you how 'BARACK-ETOLOGY' went down from the Sweet 16 on...


As someone [probably already] mentioned... This Cyprus gambit is just one big TRIAL BALLOON...


Thu, 03/21/2013 - 12:17 | 3357560 Karlus
Karlus's picture

They can, but will spend quite a long time in line with withdraws capped at 100 EUR a day

Thu, 03/21/2013 - 11:45 | 3357360 faustian bargain
faustian bargain's picture

Levies are so math-intensive...ah screw it, let's just take it all.

Thu, 03/21/2013 - 11:47 | 3357370 mdtrader
mdtrader's picture

Great now we can focus on the Eurozone economy. Oh shit no!

Thu, 03/21/2013 - 11:48 | 3357374 Dr. Engali
Dr. Engali's picture

Shut them all down and be done with it.

Thu, 03/21/2013 - 11:51 | 3357377 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

As long as the depositors get their money it will stop any short term outright social rebellion. At least for the people at that point the question is what now? If social stability deteriorates people aren't going to want to be walking around with money or precious anything on their bodies when out in public. Bitcoin or even litecoin solves that problem. Unlike carrying my savings around in gold I can hide my checking account in my anus prison style on a usb thumb drive that the street thugs will never find when try to rob you. Keep your eyes on the businesses within Cyprus in the coming weeks and bitcoin exchange rates. Those bitcoins just washed their potentially useless euro paper and coins (outside melt value) into a useful currency (assuming the local businesses buy in) outside the reach of the banks to pervert and steal.

Thu, 03/21/2013 - 11:49 | 3357380 RSDallas
RSDallas's picture

What good does a good bank bad bank accomplish? Their losses stem primarily from Greek Bonds. There is no future value there.

Thu, 03/21/2013 - 11:53 | 3357407 Super Broccoli
Super Broccoli's picture

no wait the bad bank's greek asets are said to skyrock next erm ... century ? BULLISH 

Thu, 03/21/2013 - 11:54 | 3357409 Cognitive Dissonance
Cognitive Dissonance's picture

Why would the Russians help when they can come in after the fact (a collapse) and buy up the best pieces for next to nothing?

Thu, 03/21/2013 - 11:55 | 3357416 Bobportlandor
Bobportlandor's picture

Yep 100,000 and up. I suspect there's 100k accounts being created lickety-split before tues.

Thu, 03/21/2013 - 11:57 | 3357430 riley martini
riley martini's picture

 The world keeps getting stranger comunnist in Cyprus vote to restore capitalism while the US congress goes the unconstitutional fascist thiefdom route.

Thu, 03/21/2013 - 11:59 | 3357437's picture


Arizona could soon approve gold, silver as legal tender

Thu, 03/21/2013 - 11:59 | 3357438 XRAYD
XRAYD's picture

15.54 Now Cypriot broadcaster CYBC is reporting that Cyprus Popular Bank aka Laiki Bank, which is feared to be at risk of permanent closure, will be split into a good and bad bank and deposits under €100,000protected.

Thu, 03/21/2013 - 12:01 | 3357446 q99x2
q99x2's picture

I prefer my holidays to last longer. I'm pushing fifteen years on this latest one.

Thank you Ben Bernanke and clan. Keep the money coming.


Thu, 03/21/2013 - 12:06 | 3357486 Downtoolong
Downtoolong's picture

deposits under EUR100,000 will be protected.

By Hans the security guard, in the vault. So well protected in fact that not even depositors will be allowed to see it or have access to it.


Thu, 03/21/2013 - 12:09 | 3357504 ZeroPoint
ZeroPoint's picture

I guess the Russian mobsters lose afterall. Sorry Putin.

Thu, 03/21/2013 - 12:10 | 3357511 ZZR600
ZZR600's picture

Would love for someone to analyse who Bank Laiki's creditors funny if Lloyds, Santander and HBOS were somehow connected to them...

Thu, 03/21/2013 - 12:27 | 3357619 Psquared
Psquared's picture

Simple answer is to just follow the Iceland example. They are not a formal member of the EU. (probably never will be) Cyprus can survive the same way. Then, arrest the criminal bankers.

Thu, 03/21/2013 - 12:30 | 3357641 FiatFapper
FiatFapper's picture

good bank, bad!

they did this trick with northern rock in UK and richard branson bought the 'good' bank for £747million, notice the airline symbology.

the funny thing is that it was mostly funded by some arabian syndicate in america

the bad bank was stuffed with all the chocolate-covered dog-shit toxic debt and guess who owns the bad bank?

Thu, 03/21/2013 - 12:33 | 3357658 jughead
jughead's picture

Who's going to invade first...Russia or the UK? 

Thu, 03/21/2013 - 12:36 | 3357676 Yen Cross
Yen Cross's picture


    Re:   Cyprus Popular Bank To Be Shuttered (UPDATE: Central Bank Denies)

Sounds like TPTB are grasping at straws. They are just flinging their shit out there to see where it sticks. They have their heads up their arses, and seem completely clueless about what direction to take.

Thu, 03/21/2013 - 12:44 | 3357717 SheepDog-One
SheepDog-One's picture

Now new plans coming every 15 minutes, what are we up to now 'Plan F'?

Thu, 03/21/2013 - 12:47 | 3357731 Fred Garvin
Fred Garvin's picture

Hitler pissed his money is in Cyprus the line "whoever told me to convert my money to gold go get some crepes"

Thu, 03/21/2013 - 12:51 | 3357735 Quinvarius
Quinvarius's picture

Like there was ever a chance these banks were going open after the ECB screamed to the whole world they were insolvent and would not get backstopped unless they gave up depositor cash to make interest payments, thereby becoming less solvent.

Thu, 03/21/2013 - 12:53 | 3357752 faustian bargain
faustian bargain's picture

When in trouble or in doubt,
Run in circles, scream and shout...

Thu, 03/21/2013 - 12:59 | 3357776 luckylongshot
luckylongshot's picture

So now we have the final moves in the banksters criminal ponzi scheme to transfer all the public's wealth into their pockets.....if history repeats itself then about now people will start building guillotines.

Thu, 03/21/2013 - 13:26 | 3357954 walküre
walküre's picture

Tylers: Can we have a closer and more intimate look behind the scenes of the Cyprus equivalent to our FDIC, the "Deposit Protection Scheme"? How is it possible that they can guarantee funds for the <100k account holders when the same entity can't come up with 7 billion to satisfy the EU bailout requirement? Nvmd riot cams and closed ATMs. Are Cypriots really that stupid that they believe their money is still safe?

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