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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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316 days to go
did i miss it? what happens on 31 January 2014?
The Bernank takes up residence in his remote estancia in Paraguay?
heh
don't worry...the irish have opened up an account transfer hot line..(before the luxemburgers the lickursteiners and the cayman crocodiles).
the race to debase means that these tax havens (ummm well stealing isn't a tax is it?) can continue starving the major economies (especially the fuckwits in france) of income and corporation tax that should be paid.
i still cant believe anyone thinks these two crappy banks are going to re-open...ever!!!
Hey Tyler, how about some links to those headlines?
The ECB just doesn't want to pony up the money for the depositor guarantees. If the other account holders pay then they don't have to. 200 years ago every last banker would already be dead.
so close the banks transfer everyones account up to 100.000 euros into a new temporary holding bank, the liquidate the rest and divide it among the depositors above 100.000. bond holders/ stock holders etc just get screwed. Long term assets (loans , greek debt get sold to JP Morgan for running the scam)
+1
All the bankers from 200 years ago are dead.
Why do I get the feeling this Cyprus emergency is just more theater. We have been treated to Iceland, Ireland, Greece, Portugal, Spain and Italy....all of them creating an obsessive news environment for a month or so....then they just kind of dissipate and nothing happens.
I realize in the long term we are toast, but for those of us looking for a bolt of lightening I guess we are out of luck. The Central banks control almost the entire world's financial system and will just adjust the parasitic wealth siphoning to keep us alive as long as possible.
I feel as hopeless as a Roman in the dying days of their civilization, becoming more inward looking with only family and friends....they system is corrupted and beyond repair.
Troof
the drop in living standards in iceland continues apace..same with all the other countries you mentioned..fast or slow..the banks own everyones ass until they get their balance sheets in order with taxpayers funds.
a transfer from the fed to the banks = use of taxpayers funds to bail out the american banking system until it can make sufficient profits (from screwing taxpayers) to stand on their own two fat feet
Actually Iceland is recovering beyond our wildest dreams -- while Ireland remains on the verge of collapse. But then Iceland let them banks go their natural ways, while Ireland had to prop them up, enslaving the entire nation for the benefit of the international high finance.
lies, damned lies and SDR's I know..i've never been there and who knows who you should believe..but there's this to 2010
http://4.bp.blogspot.com/-tExZMQn2v_E/T_9OmlyZZBI/AAAAAAAAAVg/gQPfvLG3Yb...
from this blog
http://icelandicecon.blogspot.co.uk/2012/07/living-standards-in-iceland-...
whats icelandic (danish?) for bullshit!!!
+1
They got this completely under control.
Bankers win again.
If this goes through, Russia might get a Cypriot port wheter Cyprus wants to give them one or not.
If they get Limassol it'll share a border with the UK
http://goo.gl/maps/6Ma8H
I wonder if I'll have to move to the SBA?
Are there cash machines / UK banks in the SBA's?
Don't they have friends with a printing press? Is it that tough? Can't they find the fuck in the CIA that prints up the super bills? How about depositing a trillion dollar coin and just make everyone whole? Lol. Possibilities are endless! Get creative!
exactly..a flick of the switch and 20 billion is there
trouble is..i guess they don't want to set a precednet...yanno, rather than transferring 20 billion to bankers bonuses, they actually give 20 billion to real people.
screw non-residents i say that all residents are made whole and the bail-out is apportioned amongst non-residents
and the EU and russia can squabble over who provides the money to cover the greek bond losses made by the two big Cypriot banks
Europe cold next winter?
More reason to move to sunnier climes. Maybe an island in the Med.
This is like trying to catch a greased pig with a lit stick of dynamite stuck in its ass...
get an umbrella, turn it upside down and wait for the bacon!
then pass it round to the impoverished cypriots for food for the next week
then look around for more pigs or watch all cypriots lose a lot of weight
I'd like to see the numbers on new accounts opened in Switzerland, Caymens, Lichtenstein, etc. , since last Friday. All opened with the minimum balance and easy electronic transfers available.
most definitely, if only to test their money laundering compliance procedures for new accounts
I miss the good old days when taxpayers could give a rat's ass about saving banks. And please forgive me, but why the hell should taxpayers cover any amount of money people deposit in a bank?
Should we also pay back people for money they lose their job? Oh, forgot...we do that too.
i have soem sympathywith that view
perhaps the cyrpiots shoudl hand over their shares in companies or their empty houses (at current, not tomorrows prices) and say...enjoy
Got to differentiate between saving banks (which is highly criminal in most cases) and saving depositors (which makes sense to a certain degree and amount).
EU must feel this is now a death match. It will be very difficult for them to put the illusion of freedom back into their little bottles of snake oil. The only good outcome of this will be if the Europeans wake up to the lies.
if the german win this one (100 miles short of moscow) russia will come back and rape their women in 4 short years
That has a familiar ring to it...
PK and MDB have been conspicuously silent today.
they had borrowed 1 billion each in us dollars at 1% and lent it to cyprus banks at 6%, because you can never debase a currency, euro or dollar
Confirms my suspicion -- oligarchs pulled enough liquidity out to trash near term liquidity -- ECB lashing out to cut off the wounded limb. Truth is always stranger than fictions...
What a novelty if people actually took an interest in what banks do with their deposits.
Duplicate
The $64 question is whose accounts are in the uninsured pile?
Putin and his cronies.
40% haircut? That'll get him off his ass.
Can anyone explain why these Cyprus banks are in such trouble if Super Mario is already allowing said banks to exchange garbage for cash.
Did they run out of garbage and need pure cash infusions? Makes you wonder how worthless that garbage the ECB is sitting on really is...
As worthless as the EU politicans are.
We must not think in terms of free markets, rule of law, etc.-
That isn't reality.
It's a game of Power. You can bet for the player you want, but be aware: anything goes. Robbery, war, guerrilla, blackmail, sequester, torture, absolutely anything.
WITHOUT ANY RULE.
In these times there's only two things you can do with your money: spend it on you and your loved ones or buy something you can hold or actually possess. Otherwise you can be robbed by any of the contenders at any time.
This will be fun to come back to in a year to see the end game of what actually happened....not just to the banks but with the Russians revenge......could be a good movie plot...probably rated R....
Got to thinking.
What if Frau Merkel and the EU have been scared by recent events in Italy and Greece?
What if "punishing" Cypress is the last roll of the dice?
If the Cypriots have total collapse, Southern Europe will fall in line, but if Cypress survives the punishment, Southern Europe bolts.
Cyprus shouldn't do a 40% haircut, but rather a 60% payout from the liquidated banks. This sounds much more positive and explains better what's really happening.
These days the first monies from the Lehman bankruptcy are recovered; five years of waiting and pushing and remaining in the dark and in the court room. Why should Cyprus let their depositors faster off the hook?
the decision to 'restructure' Laiki will cut €2.3bn from Cyprus's contribution to its own bailout - so maybe they should scrap the other two as well.
When do they release the 100Trillion Euro notes?
....annnnnd, it's gone!
Eurozone's last days in the bunker, as the forces of reality close-in ... they go for suicide.
Looking to arise from the ashes transformed ...