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EU Weighs 40% Haircut On Uninsured Cypriot Deposits In Bad-Bank Plan
More details are appearing on the latest and greatest plan in the shambles to solve Cyprus' (and Europe's unsolvable) problem. It appears the European Group is implicitly declaring economic war on the 'wealthy' depositors (we noted here non-domestic depositors dominated recent inflows) as these headlines hit:
- *EURO AREA SAID TO WEIGH CLOSING CYPRUS POPULAR, BANK OF CYPRUS
- *EURO AREA SAID TO WEIGH GOOD BANK, BAD BANK FOR CYPRUS BANKS
- *UNINSURED DEPOSITS COULD GO TO CYPRUS BAD BANK, FACE 40% LOSS
We assume followed rapidly by some eurozone law-breaking capital controls to stop the remaining 60% flooding out instantaneously...
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floodgates open
Cyprus needs to leave the Euro and print their own money. They need to name their currency bitcoin so that it will already have a little bit of value.
bullish....
Hope they like the taste of polonium tea
Bloomberg TV's Adam Johnson just said Cyprus is holding the Euro and US markets hostage... hahahah Laughable because the complete opposite it true. EU Mafia is in full effect with their racket.
Too bad they're hired to simply read rather than think. Matt Miller is cool though. Trish Regan dresses like a pilgrim and is absolute garbage along with Stephanie Ruhle (cheerleader).
The thing that is so wonderful about criminal fraud (and by extension the practice of rehypothecation), is that even when something is settled upon, which will surely be a disaster in and of itself, I have little doubt that the actual unhypothecated funds are just sitting there in accounts. Evidence of such institutional reinvestment, fractional reserve and illegal use of customer funds by US banks has been documented here on ZH, appearing to be quite common nowadays.
How much was already gone even before last Friday?
If the depositors get any form of haircut. You can be rest assured that the Russians will be exacting revenge. There will be many and unfortunate accidents amongst the European Bankers.
Larry Motherfucking FINK is long electric razors, shavers, trimmers
Luckily for the EU summer is just around the corner. Something tells me it could be a very cold winter later on.
Bankers and politicians to be scalped if depositors get haircuts.
Hell toys the only frigging country that jailed and fucked over some bankers was China. I really do not know how to say this but here I go, this will get real ugly if they fuck over the Russian Mafia. They not only kill you, but your entire family and parents. This may not be smart for these politicians.
Another scenario in my mind is Putin wants the names of all the accounts of the Russian Mob so Russia can take their money. Putin was tied to them at one time in several articles. Maybe he now wants his cut!
The smart move would be to get exploration rights in Cyprus and a deep water port. Kick back, lay low, build the port and drill for oil and natural gas. The EU is seriously fucking up as they are energy resource poor.
Here is the ECB's idea of a "haircut":
Haircut
Aww man, a little warning next time. I was eating. lol
You say that like it's a bad thingy;)
There's revenge and then there's sending a message. . . .the latter could get messy.
They ran out of time on Bloomberg, and they're going to leave Cyprus news...
......and head back to domestic happy talk about why the market's up, but no fucker has a job. It's all part of the plan, I'm sure.
So let's go to our panel on the hot stocks for today! derp a derp
Or switch over tp CNBS and hear their latest rant about how "tired" gold has gotten.
Either that or a lead salad.
Schrute Bucks or Stanley Nickels.
Printing their own money would do nothing to solve the problem of the banks having owned Greek bonds or making other losing investments.
fixed it:
Cyprus needs to leave the Euro and MINE their own money.
That would be smart, good job. Naming their new currency (which no country has yet to use as their currency) a form of bitcoin would have some value. Also All these controls will just make it worse for Cyprus in the short term and long term. They are going to lose, the question is do they want to draw it out over a longtime or real quick and then rebuild their currency and economy.
BREAKING: Russian treasury unable to meet it’s financial obligations. All government agencies see asset freeze in Cyprus-Prime Minister Medvedev
Read more at http://investmentwatchblog.com/breaking-russian-treasury-unable-to-meet-its-financial-obligations-all-government-agencies-see-asset-freeze-in-cyprus-prime-minister-medvedev/#vJIfbTCCLKMHH76K.99
I haven't bothered to evaluate this site, may be Tin Hat...
One way or another, this is about economic war with Russia?
Wow, it's amazing to 'watch' this happen in virtual real-time. Thank you Zero Hedge for the fantastic coverage!
That being said, this is just breathtaking if they really do take 40% of the over 100K deposits. Hell, they might just take it all!
The coverage elsewhere is for shit. Drudge finally has something up, but everyone else is all about Syria/Iran/Israel, the Pope, or celebrity stupidity. It's sickening.
At this point you would expect something different?
They are all about the pacification of the masses and telling them that their money will soon be stolen by a bunch of rich motherfuckers is the last thing that they're going to do.
I would really be shocked if within the next few days there isn't a mass shooting or commencement of Syrian/Iran "aggression".
Angela "Forty Percent" Merkel's intention was announced a week ago.
Did anyone think the 40 percent target would just disappear or something?
This is Europe, where revoting continues until the desired result is achieved.
That would be Christine "Forty Percent" Lagarde to be more accurate.
The so-called "Bad Banks" will just happen to be where all the Russian money is.......
It's amazing that they've pushed us to this point.
If it's going to come down to a battle between Russian criminals and banker criminals, I'm going to side with the Russian criminals.
Pass the popcorn this could get entertaining.
Thanks, Tyler, for being to only web site to be following this.
Another damn double post. My "save" finger must stutter.
He had them strokes, bless his heart.
Russian money is reivested back in Russia and all over the world. If they loose some money and they will for sure, it will be just fraction.
http://www.businessinsider.com/abramov-abramovic-cyprus-investments-2013-3
It's the principle. The Russians will respond in a measured manner. When they start cutting off body parts, and they will for sure, it will also be just a fraction!
Cypriot banks are a pass-through for Russian "hot" or "dirty" or "black" money, not a terminus. All this talk of "punishing" the Russians by hitting Cyprus banks is, well, BULLSHIT.
At this point they might as well take it all. Even a small hit will kill confidence so go for broke. I've never heard of a pickpocket grabbing your wallet, extracting a twenty and handing it back saying "That's all I need". They would be wise to grant full exclusions for anyone who can document a connection to trained assassins.
That's the risk you take when you invest more than $100,000 in a bank. If the bank fails, you stand to lose everything above $100,000 (don't know how to get the Euro symbol). So, as long as all bonds are defaulted and all stock made worthless, the remainder has to come from depositors.
That's the risk you take when you invest more than $100,000 in a bank
FDIC was extended to $250k per depositor.Not the old 100k.
Like it matters.
alt 0128
http://www.alt-codes.net/euro_alt_code.php
€ +1 to you (even though that didn't work - I copied it from Word).
€
Excellent. Taking everything would solve the problem with capital controls. Then I'm sure their new best friend Russia could give some great advice on collective farming and other things.
Just as one can't be a little pregnant, one can't be a little ass-raped, either.
Need a T-shirt illustration for that piece of popular wisdom, preferably with a 250lb alpha prisoner and his bitch.
Don't let this be you!
Just as one can't be a little pregnant, one can't be a little ass-raped, either.
Apparently you've never met 'Tiny Tim' Geithner.
"I just want to put it on the hole .... I won't push it in, honest."
At least, that's what my priest always told me.
The trillions the central bankers have pissed away and they are shaking the system over pocket change. One has to ask why?
On the margin, it's never a problem. Until the last euro.
This is just the beginning, tuesday will be funny!
Furious russian small biznez men trying to get their remainig 60% after haircut.
Could be interesting the Tuesday a week later. That's the week after Easter. The week after four days with no bank opening. The ideal time to wind up a currency. Which countries are going to follow, though?
nice avatar
Greyhat
Wow - can't believe they didn't ban the iron cross avatar - it is almost as bad as mine....
Only titties get banned. They are so..., unnatural;)
Pretty sure there's no out-of-bounds avatars here, just some consideration for the wage-slaves that view ZeroHedge at work...
It is as if the Eurodummies are purposely baiting Russian capital into a provocation: when Russia turns off the gas feeds to Europe and builds their Cypriot nuclear missile station with all warheads aimed at the Continent that expropriated their wealth, who will be laughing in Frankfurt/Berlin/Brussels?
The talking heads keep saying how the EU doesn't want to do a deal because it is all Russian mob money.
Isn't that the exact reason the EU should want to do a deal?
We are going to see EU technocrats going boom in the weeks ahead courtesy of the Russian mob.
The talking heads keep saying how the EU doesn't want to do a deal because it is all Russian mob money
Then why not just target the RUSSIAN account holders?.
Do I really have to repeat this again?
Q: How can you tell when a bankster is lying?
A: Yes.
Bad time to be a horse. With a head. Just sayin'
Is Poland between Moscow and Berlin?
All theater.
We all have the same masters, and those who make too much fuss are liberated from their oppresive governments in the name of democracy.
yep and now Cyprus found out how nice it is
God damn it!.. it actually is..
Does it mean you are from Poland?
If so.. bless you son.. it ain't gonna be easy there..
With hindsight: 9.9% was a good deal.
That's exactly the message Merkel is trying to send.
I can't decide if we've reached the "triple dare" or if we're still at the "double dog dare"
I AGREE that this is all theater - the EU probably sent in/paid the protestors. Why do I say that - they are too well behaved.
The fix is probably already in with the EU grabbing its ankles once again...
That depends upon whether you think remaining a part of the EU Ponzi system is a "good deal".
And even with the 40% haircut the pubic hair still remains.
/disgusting snark
Actually, 9.9% is not an unreasonable vig to pay for money laundering.
Yeah this is going to end well. You have to wonder what planet these idiots come from.
Uh-oh
Gotta love it
Nothin bad woulda happened if the muckety mucks would have never talked about confiscating deposits
And now looks like the savior for Europe is gonna be Russia.
Fucking Awesome, Dude
Oh the irony of it all....
So this is how the Cold War ends. LOL
No worries, knuks.
Cypress is unique. Tee hee
I forgot
BTW Trisha Regan on Bloomie is talking with two dudes about whether this Cypress miasma heralds the end of the Euro.
Don't ask me what they're saying because I have the sound off.
But one of the guys looks clueless like the proverbial deer in headlamps and Trishs looks are amazingly hateful. I mean if looks could kill... He probably said it mattered.
100% is gone. The EU might as well take 100% because if they take 10% or 40% it is all going to be gone after the banks reopen unless they can jail people for not having a bank account.
jail people for not having bank accounts?
Sshhhhhh, don't give the eivil robbers any more ideas!
They could make it necesary to swipe your bank id card before you can make any cash purchases so that you dont get arrested for not having a bank account.
100% gone, many times over - hahahahaha!!!!
Does the 40% haircut for the non insured deposits require a parliamentary vote?
Suicide, litteraly for the politicians I would have thought if so.
Of course this needs a vote, these are democracies we are talking about.
(cracking myself up typing this)
You mean assisted suicide?
Escalation ain't just a happy Eskimo in Alaska.
Yo! Don't call me eskimo!
http://www.youtube.com/watch?v=tS8RZcKQwBA
In late trading today, healthy Cyprian knee caps hit an all time high, but market analysts are warning that this market may have moved too far too fast.
Unbelievable, but some CNBC Blowhornist just declared 'The important thing is'...40% is better than 10%?
I want an official CNBC calculator!
I heard if you open an account at a Cyprus bank today, they will give you one.
A Genuine CNBC calculator!
let's all get overdrafts!!!!!
anddddddd its gone
throw in a Spiderman towel and I'm game
Cdad's Proprietary BlowHorn [CNBC] Unwatchability Indicator must be parabolic by now...but I cannot confirm...as I refuse to watch it due to threat of damage to the brain stem. Caution.
What is really funny to hear on CNBC is the commentary that relates to the small population of Cyprus and how it is too small to matter. Of course it is the size of the banks that is the issue, and how the problem is resolved related to depositors. The original proposition of leaving the shareholders and bondholders whole while screwing the depositors was the beginning of the undoing of the Ponzi scheme. As soon as these banks are connected to the transfer wires again it is all gone.
So...you're saying you are skeptical that €15.8 billion can and will secure deposits of €130 billion? You know...the ECB's original plan?
This shit is getting serious. Don't fuck with the Russians.
Relax. Those are harmless nice guys. They understand their legitime share of 20-30bn for a common good.
And not a penny of that Russian money is legal, honest, unlaundered, avoiding taxes, etc. Some of these people are mean motherfuckers who don.t take kindly to being the screwed...
You did not get the sarcasm? Well. Now couple of oligarghs are gonna be really really upset.
Just wonder if their response is to drown pain in vodka or do they have more imagination?
It was actually Finland, who insisted on haircut. We are only 500km from St petersburg. A day trip...
Finland might still hold a grudge for those 3 russian invasions, exploting their nat. gas market, and misc other evil things.
No, I wellcome Russians to come pick up this socialist finance minister.
She was the one behind the deal.
That would be a favour all of us. Less socialism.
Yes I got it....
I don't think the pain is gonna be the oligarchs nor connected to vodka in any way
Pay those Ruskies with the defaulted Ruskie bonds from 20 years ago. Maybe Putin would then make good on that debt.
What's this now.....'Plan Z' already??
They need a longer alphabet
If the use the Greek one they only have 24 possibilities!
Did Cyprus attend this time?
not all of them..just one or two bagmen
why dont they simply declare bankruptcy and proceed according to the rules - shareholders wipe, bondholders wipe, deposits above 100000 wipe, pay out garanteed deposits within 20 days then sell the property of the banks to cover the losses.
Oh wait i forgot - the CDS would be triggered and some casino brokers (read insurers) would get hit
Plus it would set the terrible precedent of an EU institution facng reality. Can't have that.
What are these things you call "rules"?
It sounds fishy to me.
Do you know the level of CDSs outstanding in Cyprus? $2 billion gross notional on the government, little to nothing on the banks.
Deposits are the problem. CDSs, in the case of Cyprus, are not.
The BIS seems to be their new henchman.
why don't they resite the BIS from Siwtzerland to Cyprus...they can steal whatever money they like from all the world central banks then and make it an island vault for gold demanded as collateral for lending the stolen money back.
Yakov will not be pleased.
In post-Soviet Russia, Yakov pleases bank.
How many bad banks are there in Europe? Are all of them at risk for a 40% cut after the deposit guarantee for the first 50,000 or 100,000 Euros?
in a case of a bankrupcy all deposits above 100000 euros (their part above 100000) get completely wiped out simply because it is impossible to recover losses by selling banks' assets in the market (assets are hugely over-valued on those banks balance-sheets)
that parenthesised bit is worth saying again and again and again
what makes me laugh is that the MSM think that US banks are in better shape!
must be why C hasn't got above the old money number of $5 bucks a share yet. how its market cap is $138 billion is beyond me when its unprovided loan losses are in excess of 200 billion (1.26 trillion of "long term" - cant shift investments that prrobably need a 15% haircut and, get this, GOODWILL of 26 billion)
Where is Beppe? He's gotta be loving this.
i hear there is going to a "presidential" government ..one appointed by el presidente..can't work, won't work
italy has to either kowtow to europe and form a government that excludes the five star movement and continue with Monti's reforms...or fuck europe, let the five star movement fuck up and exit the euro.
How are depositors at Bankia or Monte Peitschi di Siena feeling?
Their money is of course absolutely safe, as Euro Group promised.
Go to bed, sleep well, sweet dreams. There is no bogeyman in tomorrows papers.
If they were stupid enough to still have money in those banks, they will likely become BitCoin customers if they become nervous.
From a small spark may burst a mighty flame.
--- Dante Alighieri
Cypriots should reciprocate but not stop at hair!
ugh
so a guy with 102,000 gives 40% away and a guy with 99,000 gives away nothing?
percentages dont work in the case of theft
you pro-rata the total amount of the theft pro-rata across indivudals proportion of the total balance and everybody gets to keep 100,000
i think these clowns do not have the most basic clue
"Fair share, blah blah blah."
Is that you Obamiewan Dontknowbe?
more like rpoo-upoo!
i do not know how they will proceed in Cyprus but normally (in case of bankruptcy) if you have 102000 you would get insured 100000 back and lose 2000.
Assuming there is 100k available for all depositors....In a typical "real" bankruptcy the crditors get a % of what is available - and no one esxpect 100%.
i hope so for everyone's sake
pure evil the whole thing
And getting eviler by the minute.
forget "good bank/bad bank".............................when its americas turn, the enormity of the problem will force the overlords to divide the u.s. into "good country/bad country"............................
Actually Kito I'm thinking four different countries.
very likely doc. does that mean since you are in indiana and im in new jersey, i will need a passport to visit you in a few years?????????
kito,
Yes and to and from work soon.
http://www.infowars.com/big-sis-refuses-to-answer-congress-on-ammo-purchases/
PSHAAAAWWW......answer questions from congressional respresentatives about spending the country's money on obscene amounts of ammo?!?!?? how dare they ask!!!......................
meanwhile i cant find ammo anywhere...........everybody is sold out............
Don't you just love that concept....only in today's world could anyone believe that splitting a bank into good/bad makes a scrap of difference. Why not split the country into good and bad parts?
Onward idiots!!!
bad bank/incredibly bad bank!!!
+1
They did split the country into good and bad parts: Greece and Turkey and the partition.
Just bring NATO democracy and freedom to Cyprus by declaring the banks to be centers of international terrorist financing and commence the carpet bombing.
That's some good evil.
Me thinks that is the plan........You gotta think 3 or 4 steps ahead of these fuckers
Beginning of the End of the Western Banking Syndicate - he who gets out first gets out best - gotta run...
I never watch the idiot channel. Are they even talking about this at all?
they are talking bout the 7/10ths of a percent earnings growth for the first quarter and where the economic growth is going to come from to support a consensus forecast of 8% for the calendar year.
inflation = 2% (i know i know its crap)
real growth = 2% (see above)
cost cutting = 4%
earnings = +8%
what could possibly go wrong?
zh has a main article on this using goldman sachs data of course...most truthful and quality data available in the market!
Someone is playing Russian Roulette with all 6 chambers filled!
What can go wrong?
So, what currency will they be using next month?
Euros?
Roubles?
Cypriot Pounds?
Pounds Sterling?
Turkish Liras?
Whisky and cigarettes?
Smegma encrusted dead skin cells from Angie's Lilly white never touched upper inner thighs
Krugman said it'd work out fine
Or Bazooka Joe bubble gum wrappers
As Hillary said. What difference does it matter? Or something