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Is Cyprus' Last Remaining Big Bank Set For An Unexpected Liquidation?
As part of the weekend's Cyprus parliamentary vote-bypassing "bank resolution", we learned that the second largest Cyprus bank, Laiki, will be liquidated, with the bulk of its good assets rolled into what would remain of the first and only remaining major bank in the island: Bank of Cyprus (whose uninsured depositors would also suffer a haircut, but supposedly a smaller one, less than 30%). Then, in a very surprising move overnight, news hit that the Chairman of this last standing bank, Andreas Artemis, has tendered his resignation.
Why now, when everything is supposedly fixed and when the impression of stability is paramount? Perhaps the reason is that as CNBC's Michelle Caruso-Cabrera reports from Cyprus, there is now an rumor that the "other" bank - Bank of Cyprus - may also be on the verge of liquidation.
While this is unsubstantiated for now, it would make sense in the aftermath of yesterday's confusing announcement of a select bank reopening today, followed hours later by an extension of the bank closure through Thursday (at least, likely longer), but more importantly, following reports that Russian depositors may have already long pulled out their cash from Cyprus, meaning not even full impairments on all uninsured depositors will be enough to cover the capital shortfall, with the only option being impairment of the insured depositors after all... or bank closure.
Keep a close eye on what happens here next because if the only remaining "good" Cypriot bank is shuttered, then the entire European bailout package, cobbled in the last hours of Sunday, goes poof.
From Michelle Caruso-Cabrera:
Bank of Cyprus employees now inside. They are here because of rumors that BofC will be liquidated like Laiki Bank.
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"Fuck you, pay me" - Goodfellas. Roll tha god damn guillotines already.
aaaaaaaaaaand it's gone...
What is Jean Luc Picard doing in the back row???
I didn't think Picard had hair.
He's come back in time to catch the Ferengi that have infiltrated the ECB
Profit ... Arrrrr, PROFIT ...
Tylers, does "unexpected" have a new defenition?
Not when viewed through the Troika's rose-colored glasses.
YMMV
I'm kinda fuzzy on this whole good/bad thing.
What a freakin' gong show. I'm sure these "Ministers" or whatever the fuck they are are not even looking at the current Banks Balance sheets when they make their sweeping decisions. They SHOULD have locked these Banks down tight sat down and got firm numbers....this is just like trying to hit a moving target while riding a horse at full gallop.
Oh it's pretty simple. The Russian mobster explains to the banker what's going to happen to the banker's family if his money doesn't magically make it out from under the "lockdown"
I know, they fucked up big time. By allowing the banks to still be open via it's subsidiaries (to get their money out) and not locking down the bank to get real numbers on what the bank owes and has for assets. I think this rumor will be found to be correct, I think everything is going to fall apart either Wed or before the bank "opens" on Thursday. And even with capital controls, they can't allow people to draw money out it would start to shrink their assets. The insured are going to lose their money.
...
Speaking of Ferengi, don't forget about Merkel.....
Beam All Them Poor Souls Up, Scotty ...
His big scene is coming up...
http://www.youtube.com/watch?v=5lE3IeNUzIo
JLP has to have his moment of glory.
He's the one who will get to say, "Make it so."
Piloting the 'Banking Enterprise' and boldly going where no bank has gone before...with photon torpedoing of depositors accounts any minute now...
He's waiting to get his haircut.
If this keeps up, I might start to get the impression that fractional reserve banking is not a stable system...
Not just fractional reserve banking..........evn banking your money is not safe.
"Fuck you, pay me" - Goodfellas
You're funny...
http://www.youtube.com/watch?v=IWINtUCshxY
"Your worried you can't swim ? Hell, the fall will kill you..."
Butch to Sundance
Looks like Andreas might be in a postion to get a job at a larger institution now that he has one liquidation under his belt
Andreas got tired of having one after another Russian Oligarch call him with the same account PIN.... Y-O-U-R D-E-A-D
"Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced."http://www.telegraph.co.uk/finance/financialcrisis/9952979/Cyprus-bail-o...
You mean that other MAJOR bank?
I see the problem...two Major Banks under the command of General Confusion.
That's enough to give ya MS.
Don't you mean General Disarray.
Which bank is not propped up?
remember Bankia?
218 BILLION EURO MARKET VALUE ON THE STOCKMARKET!!!! 218!!!!!!!!!!!!
oh... and real value? MINUS 4,18 BILLION EURO'S!!!!
THAT BANK IS WORTHLESS!!! AND STOCKS ARE TRADING AT 0.14€!!!
OOPPPSSS!! JUST POPED UP TO 0.15€!!
http://finance.yahoo.com/q;_ylt=Ar2phOG3dF3obECbemz91NfxVax_;_ylu=X3oDMTFjaWRsaWZiBHBvcwMxMgRzZWMDeWZpU3ltYm9sTG9va3VwUmVzdWx0cwRzbGsDYmtpYW1j?s=BKIA.MC
FOR FUCK SAKE!! 218 BILLION EURO'S THAT ARE GOING TO GO DOWN THE SHITTERS!!!!
AND WE'RE CRYING ABOUT A 10 BILLION BAILOUT PROBLEM FOR CYPRUS??!!!
10 VERSUS 218 THAT WE NEVER MENTION?!
WHERE THE FUCK IS MERKELMANIA NOW?!!
A COMPANY WITH 1.5878 TRILLION!! YES TRILLION SHARES OUTSTANDING!!!!
WTF!!!
There is no Russian black money to steal there and too much bad derivative exposure to keep hidden until they can adjust their positions accordingly so when the domino falls they can cover those bad trades with new bad trades elsewhere.
As the dominoes fall they will have less and less counterparties to hide the toxic turds with more toxic turds. At some point even Benny Boy here won't be able to cover those bets with his back channel bailouts anymore. This isn't going to end well at this point no matter how long they keep it up now.
No Russian Money?! HA!
RUSSIAN BLACK MONEY AND MOST OF EUROPEAN BLACK MONEY!
(Collect call from George Orwell)
(I'll accept)
"The decision to further push back the re-opening of Cypriot banks, which have been shut since March 16, even as the country hammered out a last-minute bailout deal, may be seen as a signal of further uncertainty in the crisis-hit island nation. But analysts tell CNBC that on the contrary, the move will help restore investor confidence.
The extension of the banks closure to Thursday, to prevent a run on deposits, shows that the authorities are working hard to put in place measures to stabilize the battered banking system, said experts.
"People who have got money with these banks will want them to re-open, but it's much more important in terms of global financial stability for it to be done the right way," said Steve Brice, chief investment strategist at Standard Chartered Bank in Singapore"
http://www.cnbc.com/id/100590156
I'm sure they're just redecorating the lobby and don't want to re-open until all the finishing touches are in place. </sarc>
If these banks go under and it turns out to be true the Russkies were able to pull funds out during the closure, I have a feeling Cyprus will burn.
Very true.
Reports "i'm getting are that violence is not far away.(have Cypriot nieces and nephews).
Too bad Cyprus did not have an army. It would have taken over control by now.
"to restore investors confidence" MWAHAHAHAHAHA :-)
"people with money in those banks" MWAHAHAHAHA it's long gone fellas, forget it !
I said in yesterday's "I believe" thread that those banks will not reopen. I stand by that statement.
Not trying to take credit- I was not the first one on ZH to say so. Just pointing out that when troubled banks close, they generally don't reopen- ever.
No chess pieces, no chess.
Tough break, eurotrash.
the good bank is actually a sorta kinda borderline bad bank also
These guys could fuck up a two car funeral.
Bad bank, badder bank.
Corzined bitchez!
KreditAnsalt'ed bitchez.
Its not ryhming,its repeating.
They need to fly in MC Hammer to run their finances.
About the only thing left that could save the EU further embarrassment is a giant asteriod hitting Cyprus...
which explains the presence of Jean Luc Picard in the back row.
Somebody tell MCC that if she's trying to score a Becky~Warren for herself, all the Russian billionaires have left the building already...
MCC is a pitching wedge: she looks good from 100 yards.
I'm watching Bob Piss-on-me on CNBS and Cramer pushing this BS market and cheerleading housing.
Even Santelli is jumping on board.
Fuck me!
More like a 7 iron...
The fuckers can't even make it to Good Friday.
Good Friday is May 3 in Cyprus.
Assuming it's not delayed again.
POOF...........
So regarding this: "then the entire European bailout package, cobbled in the last hours of Sunday, goes poof."
This is a good thing, yes? I've been a close observer of the markets during all of this, and it seems the truly bullish things are:
Stop me now...if I have any of this wrong....
Good list.
Also Ghoulies and ghosties and long leggity beasties and things that go bump in the night.
Courtesy of the English Book of Common Prayer...., for way too long.
Don't forget great quotes:
"When it becomes serious you have to lie."
'The important thing is'...we can apparently do whatever we want, no matter how outrageous, and the peasants never pull their money out of our grasp so we can steal it whenever.
you forgot "QEs", "INFINITY", "NEGATIVE INTEREST RATES"
Name one bank in the USA this can not happen too.
The Bank of CD with only one depositor family.
The so-called "community banks" seem to be doing fine.
Only because real estate has been propped back up (or at least has stopped cratering). In 2008/9 many of these "stable" banks were on the verge of shuttering.
If there is another down leg on home prices, many community banks will be back in hot water.
Yea what shape would the 'community banks' really be in minus FEDs total propping of MBS?
I've heard that it only costs $5 to dig a shuttered bank out of the ground...
We're all bankers now, bitchez.
the sperm bank....they are seeing the rate of deposit flows accelerating
If that bank is so safe, then why do millions of teenage boys still keep their deposits under their mattress (in a sock)?
Hope they change their socks occasionally
Bank of bitcoin.
got one : The Sprem Bank !
I'd be calling Mr. Buffet around bath time to see if he has any ideas...
So is the Euro now officially the Uowe?
With the shit starting to hit the fan, why haven't major bank runs started all over Europe yet?
I wonder the same thing too. And why hasn't gold and silver moved up?
Coz we all have bank accounts in Cyprus :-P
Three words, naked short selling... of paper gold that doesn't exist...
You think they're going to tell us when that happens?
It probably has, more than once.
Ever heard of Twitter?
They're good, but they're not that good.
Maybe everyone is too broke?
With the shit starting to hit the fan, why haven't major bank runs started all over Europe yet?
"The normalcy bias, or normality bias, refers to a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. This often results in situations where people fail to adequately prepare for a disaster, and on a larger scale, the failure of governments to include the populace in its disaster preparations."
Still, I do know several people who have withdrawn money from their bank accounts even though they do not live in the critical parts of the EU, so I think it's possible that the true extent of the deposit outflow might also be underreported.
That's an excellent question - the good people of Italy, Spain & Greece must still be asleep - but if they are, the they deserve whats coming to them. Anyone with an account in any Eurozone bank should have emtpied their accounts and demanded their cash last week. It's incredible that this is actually happenning - the complete failure of the entire banking system it literally on the razors edge.....
Bank of Cyprus probably needs to liquidate and come back as a community bank in Cyprus. Community banks that keep their risks low are thriving in the U.S. Bank of Cyprus could be one of those, if it cleaned up its balance sheet.
not "thriving" nearly as much as the big banks with access to the Fed's perpetually open $ spigot
They are here because of rumors that BofC will be liquidated like Laiki Bank
IS THAT THE ONLY REASON TO SHOW UP FOR WORK?!! NO WONDER THAT SHIT IS GOING BANKRUPT!!!
The banks are closed so there's not much work to be done.
Just stand still while we rob your bank account...nothing to see here...go keep yourselves busy buying stawks!
there is only one option, open the banks but shut off the Cyprus electrical grid. Banks are open but nothing happens accept you get free candles with a deposit.
Novice Nun: "Where's the candles?"
Mother Superior: "Yes, doesn't it!"
Mother Superior and young nun riding their bikes along a cobblestone road.
Young nun says: I haven't come this way before
Mother superior replies: It's the cobblestones dear.....it's the cobblestones.
What's the problem? No bank, no bank bailout needed, no problem. /s
Political move by Cyprus to jam pressure back on EU?
The only question for those employees is "To Loot or not to Loot".
It seems like the Russians managed to get some money out the BofC during the bank holiday of last week! Ah those Russians
Don't fret, Cypriots:
THE RUSSIANS ARE COMING!!!!
Cyprus and NYC have the same Financial Sector biz models.
Votes? We don't need no stinkin' votes.
Somehow the /ES is seeing this as a positive...WTF?
Armstrong says if they open the banks in Cyrprus, it'll be a MELTDOWN
http://armstrongeconomics.com/2013/03/26/if-cyprus-opens-the-banks-this-...
I never believed Lance anyway
THIS IS THE MELT DOWN.
There are no major banks on this "half an island"!
When does the bidding start for the speaker system in the ceiling? I'm also interested in the wood paneling...
Yes. And this is just the begining.
Maria Caruso Cabrera is a cunt banker shill, but I do need to give some credit to CBNC for sending her to Cyprus. They could be completely ignoring the story.
Is it true Miley Cyprus is going into rehab?
I tweeted a few days the Banks will never open ..
Well if they leave the backdoor to the bank open in Russia what do they expect?
So when high bank officials begin resigning (or jumping) is that like crazy animal behavior before an earthquake? Are they tuned into things deep beneath the earth that the rest of us can't detect - like the truth, for example.
MCC's ample cleav. will feed thousands of hungry cypriots.
None of the employee's in the photo are looking in her direction. Maybe she's not that hot to Cypriots?
They probably can't hide those toxic derivative positions without being burnt if they allow the Bank of Cyprus to open now. I bet they are using the Greek Central Bank or equivalent in Greece to cover those positions or absorb them so they can stay hidden longer and keep the farce rolling.
If it's true Russian cash has been pulled, and media gets a hold of this, it should be troublesome for EU politicians to keep defending an ever changing package under fire.
Ha....No one expects the Cyprus Liquidation.....Put them in the comfy chair.
Would Ms. Lagarde open some credit unions for the Cypriots?
If a bank fails in Cyprus, but it had no money, did it really fail? Financial equivalent of the tree falling within the forest story...
That's great !
If you don't have it in your posession right now, you don't own it.
I am assuming my retirement account, which I can't get to unless I am unemployed, is GONE.
GET OUT OF THE BANKING SYSTEM.
PROCESS YOUR GRIEF ABOUT ALL OF YOUR LOSSES NOW.
MOVE ON TO THE NEXT STEP TO SECURE YOUR LIFE NOW.
Why do I get the feeling that this article will be linked back to a week from now when TD's prophecy becomes reality.
Here it comes the liquidation of ( a tiny fraction of ) useless jobs in the highly leveraged financial (eco/expense)onomy.
When a waste is a (standard) way a live for some time, at a given point there will be a rebalancing to the other side. What you see is just a normal part of this rebalancing. And now worries, these are going to be common events for a decade to come.
This Cypriot bank clusterfuck should be, but will not be, a lesson for the Sheeples in fractional reserve banking.
"Money" can disappear just as fast as the banksters can create it.
Funny how it always seems to reappear in the bankster's pockets in the form of bonuses. Same as it ever was. It's just easier today for them because it occurs virtually vs physically. Time is running out and this abscess is getting ready to burst. Some people are going to be overwhelmed when the putrefaction is finally released! Sorry for the microbiological metaphor.
Miffed;-)