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Russian Withdrawals Quantified As Cyprus Central Bank Set To Expand Emergency Credit By Up To €3 Billion
When we reported yesterday that over the past week, the Russian depositors in Cypriot banks had managed to find loopholes through which to pull out billions in supposedly halted deposits (courtesy of bank shutdowns and capital controls) some, accurately, balked: if that were the case the Cyprus Centeral Bank would need a proportionate increase in emergency funding from the ECB (in the form of ELA) to make up for the deposit outflows. Which is why moments ago Welt reported precisely what we had been expecting to read all morning: the Cyprus Central Bank is about to demand even more cash from the ECB to plug the holes left from the stealthy Russian outflows.
- CYPRUS CENTRAL BANK PLANS EXPANDING EMERGENCY CREDIT: WELT
- CYPRUS PLANS EXPANDING EMERGENCY CREDIT BY EU2.5B-EU3B: WELT
- DIE WELT CITES UNIDENTIFIED PERSONS FAMILIAR WITH THE MATTER
Remember: this is just a feeler by the Cyprus Central Bank in direction Frankfurt - the last thing Cyprus wants is to expose just how big the full liquidity hole is resulting from the stealthy Russian deposit outflows. We expect when all is said and done, the full incremental bailout needs to rise in the double digits.
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There can be no bailout big enough to cover the hole in these balance sheets and in this story.
Give it up you fuckers!
Lying sacks of shit.
Please be patient while we make up more lies to cover the truth.
The Bernake can print that in less then an hour. He's got this.
Continue the rally people, the voice is on tonight!
Uhh, yeah, Angie, we're going to need about another 30B to cover the ruskies departure.
Will update you later on ebbody else..
That'll leave a welt.
This bitch is going to be a slow bleeder
Money money, money, muss lustig sein, in eines reichen Mannes Welt.
(Money money, money, must be funny, in a rich man's world.)
http://www.youtube.com/watch?v=ETxmCCsMoD0
Nobody could have seen this coming. Nobody among TPTB at least.
We here at ZH know this stuff days in advance. Now we just have to figure out how to make a little fiat off of each piece of knowledge and then we can own all the PMs!!!
Hey TPTB, all your gold and silver are belong to ZH.
"Give it up you fuckers!
Lying sacks of shit."
Wow..., MsCreant, you've changed. ;-)
Even those of us who claim to have our eyes wide open have clung to some small hope that the insanity would abate and the worst of our fears would not be realized.
That hope is beginning to fade fast.
Amen, brother!
I have bouts of primal anger that sits deep in my stomach. It is a bitter pill to swallow........let alone digest. Sometimes I must force myself to be calm, to understand that there are some things I cannot control.
However I do not need to be a victim and that understanding begins deep within. I just need to remind myself of this.
Gold busts through 1599. I KEEP STACKING!
THANK YOU MR. BERNANKE!!!
I wanna see the fireworks already!
I keep wondering why serial killers don't make more productive use of their homocidal tendencies than killing innocent strangers in malls and theatres.
You mean, why they don't "up" their skill level and go after less innocent and more challenging targets in finance and politics?
Note that even Hanibal Lecter did not go after the innocents, but went after the truly depraved and debauched.
I'm thinking this is the start of the Black Hole of Banking. It will eventually collapse in on itself in order to 'plug the hole' but the size and speed of the collapse will create the Event Horizon from which no deposits can escape...
I disagree, break some windows, save the world
a warhole
EUR30 at a time.
I like how they continue to pretend that there will be anything left of any of these banks by the time this is done. Everyone is going to pull their shit out as fast as possible, insured or not. How does a bank pay back billions in "emergency liquidity" when they have no depositors left?
cyprus is F***ed. the moment those doors open the accounts will empty. Bank Runs dont end after you take 40% of the peoples money. The people will want to pullout the last 60% and hide it in a tin can in the backyard.
anyone who leaves any money in those banks after this are retarted and should starve to death
Yep, I dont care how many times they fuck, they ain't getting their virginity back.
pods
The internet is a wonderful thing. The transfer of money cannot be stopped for payment of things ordered over it. One genuine hand painted Russian Babushka doll cir 1870 was brought for an insane amount under auction. Now I have both the doll and the money. Go figure how completly stupid this thing is. Thank you Fleabay / paypal your fee was most laughable compaired to the real thiefs
Never mind the Russian depositors' withdrawals... How about the UK depositors' withdrawal from Cyrpus Banks? Recall from ZH article a couple/few days ago, showing the deposits and withdrawals in a plot.
So, since I don't easily distract with side-shows for the masses, can we shine the spot light on the "UK story" also? Tyler?
/The rest of you, please feel free to return to Dr. Pavlov's Canine Show in progress. /s
The Bernan Key = control P(rint)
Paper the lies with more paper lies! Quick! Let's all form a pyramid. It will look solid and they will either buy in or go away.
there's something to that...The "Bernan Key"...or how about 'The Burnin' Key' ....ahhhh, I look forward to laughing about all of this after all the money is gone and wwIII is over...good times...good times...
This pyramid you speak of, .... Is it oriented .... point up, or point down????
Which direction hurtz the most?
Bernan Key?
Make that Bear Nun Key, and then you're on to something.
Not all peasants are equal
Just make sure you don't invest in gold.......CNBS just did their morning hit piece on gold and let you know how stupid gold investors are.....hehehehe
The ECB is allowing the russian billionaire peasants to take their money out of Cyprus thru foreign branches so Mother Russia doesn't cut off oil and gas to Europe next winter.
Financial politics are fun for everyone!
100% correct. But you need to have a large enough account, to get that kind of access/services. The common man needs to spread their wealth across various banks in various places/countries, and keep enough cash at home. Which is totally foreign to Americans, who are brainwashed to use plastic and ATMs. Like sheep to a slaughter...
The London branches of Laiki and Bank of Cyprus never closed. If fact they allowed unlimited withdrawals during the bank holiday.
From Reuters:
EU negotiators knew something was wrong when the Central Bank of Cyprus requested more banknotes from the European Central Bank than the withdrawals it was reporting to Frankfurt implied were needed, an EU source familiar with the process said. "The amount the Cypriots mentioned... on a daily basis was much less than it was in reality," the source said.
Are they still open now? That would be hysterical.
This is on the front page of the Bank of Cyprus UK website:
There is no effect on deposits with Bank of Cyprus UK Limited which is a UK bank.
http://www.bankofcyprus.co.uk/
If they are still open I want to go and deposit some money and watch the tellers head explode.
I'd pay to see that.
That is funny. +1
And in more developments:
@BBCWorld : Bank of Cyprus employees outside own HQ - "We haven't got a clue what's going on. No one has told us anything" - via @_ChrisMorris 43 minutes ago
Ill give you a hint Mr. employee.... your out of a job in 1 week.
How do you say:
Give me my money unless you want to glow in the dark as you slowly die!
in Russian?
Why waste time just send a photo of the wife picking up the kids of a bwanker with a withdrawal slip to empty your account.
I think that is why they left the back door open; probably sent them instructions on how to move it too.
pods
I'm not so sure, if they knew where to watch then Schauble would have had a more realistic number over the weekend that reflected COB Friday balances...
????? ??? ????? ???? ?? ?????? ?????????? ? ??????? ??? ?? ???????? ???????! ? ??????
No answers here, only questions! :>D
Arb-i-fucking-trage, bitchez.
I hope many Cypriots had friends in London or in Moscow who could help them.
Fuck the banksters, fuck the Eurocrats.
And there are more rich Russian gangsters - I mean oligarchs - in London than in Moscow. Makes sense...
"on a daily basis was much less than it was in reality."
Reminds me of when Jeff Christian at the CFTC hearing on PM manipulation said
"People say, and you heard it today, there is not that much physical metal out there, and there isn’t. But in the “physical market” as the market uses that term, there is much more metal than that…there is a hundred times what there is"
"Shit you mean they had OTHER banks?!?!"
Another example of markets gaping retarded bureaucrats. Fuck the eurozone.
The two things you note are unrelated. Tyler's article yesterday probably confused you. The London banks are subsidiaries, not branches. They operate under UK law, and are capitalized completely separately from the Cyprus banks. There is no crossover of deposits. They operate under UK law and their deposits---which have nothing to do with deposits in Cyprus---are guaranteed under UK law. Someone with an account in Cyprus has no account at the London sub, and would not be able to withdraw anything there (unless he had a completely different account). He would be as likely to be able to withdraw funds from the London subsidiary as he would withdrawing from HSBC. Totally separate entities.
Let's say you have a bank account at Citibank in NY. If you go to Hong Kong, where Citibank has a subsidiary, you cannot withdraw from your NY account in Hong Kong, because it is a separate entity. You don't have an account at the HK subsidiary just because you bank with Citi in NYC.
US Banks have always been a bad service comp b/c of the BSA (and other) regs. However, I do know some Asians who use Citibank precisely because they can go to a Citibank NA branch and have a free espresso and free long-distance telephone service back home when issues arise while they are in the US, even if the US teller idiots can't even see how much money they have in their Asian accounts. The better question is- among the various transfer loopholes left open by the freeze order could the Cypress Bank move assets to the UK affiliate in circumvention of the freeze (and if so, with or without SWIFT)?
The Bank of Cyprus UK operates as a subsidiary, but not Laiki Bank UK
LONDON | Mon Mar 25, 2013 2:11pm GMT
(Reuters) - The British arm of one of Cyprus's main banks said customers could continue to withdraw their cash but warned that deposits above 100,000 euros may not be safe.
Laiki Bank UK, owned by Popular Bank of Cyprus CPBC.CY - also known as Laiki - operates as a branch of its parent and gave clearer guidance on its website on Monday telling customers they are protected up to 100,000 euros by the Cyprus Deposit Protection Scheme and not the UK's compensation scheme.
"This means that if our bank is unable to meet its financial obligations, your eligible deposits are protected up to a total of 100,000 euros per depositor," the notice said. Britain's Financial Services Authority did not return calls for comment on whether it had forced the clearer guidance.
Ruth Harvey, a member of Laiki Bank UK's management team, said the bank was open as normal and there were no limits on withdrawals and no change to conditions. "We are waiting to hear the details out of Cyprus," she said when asked how savers with more than 100,000 euros might be affected.
Cyprus clinched a deal on Monday that will see Laiki shut down and heavy losses inflicted on uninsured depositors, aimed at averting a collapse of the banking system. Deposits above 100,000 euros will be frozen at Laiki and its bigger rival Bank of Cyprus BOC.CY.
Bank of Cyprus UK operates as a subsidiary, so has its own capital and is covered by the UK's deposit guarantee of up to 85,000 pounds.
Bank of Cyprus also owns 80 percent of Russia's Uniastrum Bank, which said it had not put any restrictions on withdrawals in Russia. It said no taxes or measures to bail out the Bank of Cyprus will be applied to Uniastrum.
"Even if after the events in Cyprus our partner, the Bank of Cyprus, will be forced to sell its stake in the Russian bank, this will not affect the financial condition and strategy of Uniastrum Bank," its president Gagik Zakarian said in a statement.
Cyprus has close links with Russia, and Laiki also has significant operations in eastern Europe, including about 140 branches across Ukraine, Russia, Serbia and Romania.
Its 2011 annual report showed it had 1.7 billion euros of customer deposits outside Cyprus and Greece, or 8 percent of the bank's deposits at the time.
(Reporting by Steve Slater; Additional reporting by Katya Golubkova; Editing by Louise Heavens)
so how many billions were taken out that had been 40% of equalling 3 billion? There was a huge run on the bank last week.
Oh, but gold and silver have ignored it all. They sure are working against gold and silver hard too. I hope they lose their asses!
waiters set the table while the c(r)ooks make off with the feast
This must be why Diesel-BOOM retracted his "template" statement.
Whoever is next in line for a Troika makeover will be dealt with properly, the first time around. None of this "just a bit more non-sense."
Right
They're gonna get a whole boat load spilling over the gunwales, way too much information, gobbledegook fucking unintelligible unfair nonsense
Apocalypse Now
disagree.
he only modified the term 'template' because it was taken to refer to eu policy when it in fact that policy did not exist. policy statements are a process of any organization and decided within that processes. as yet, that has not happened.
not only has he not change the message of what he said in the transcript, he repeats it freely.
he is in no way inconsistent with regard to that.
Wait a minute....and they pushed the re-opening of the banks from today to Thursday? I'm sure it's just a coincidence. They probably just want a couple extra days to count the people's money and make sure it's all there for them, and by them I don't mean the people.
Wait for the correction, 80% deduction needed after the discovery the Russian money is gone.
In other news Andreas Artemis was just seen boarding a plane for Moscow.
meanwhile - just hittin tape- EUROPEAN PARLIAMENT TO PUSH FOR DEPOSITORS WITH ABOVE 100,000
EUROS TO FACE BAIL-IN UNDER NEW BANK RESOLUTION LAW - EU
LAWMAKER
I wonder how much payola was tossed around to allow access during the bank holiday to the +100k accounts. If you have 500 million euro and you are looking at a 225+ million euro loss, throwing a 10 million euro "bonus" to a soon to be unemployed bank exec is simply smart business.
I don't blame them actually. I'd do it too.
I knew it, I knew it and the ECB should have known it. As one commentor said that it would be impossible for the Russians and others to stealthly move much of their funds because it would have been tied up financial instruments that would be hard to liquidate. I said no they would move the instruments OUT of the Cyprus control and then sell/liquidate them later in a better bank. This is exactly a feeler, because they know that they will need 30 billion at least.
wow that was fast, at least the greeks were waiting to receive the money before asking for more !
Yep, the second bailout of Cyprus is already beginning, just as disbursements under Bailout I commence.
Bailout III by summer ...
no bailout III is about ermmmmm... NOW
10 billions ? nah i ment 13. Wait i need 20 now !
Its called a bailin you silly sally
lmao. Bailout III. More like Hangover IV, or Kick The Can XI.
How much do you need now?
10B. Ring.
Oh wait I have a correction. 13B.
Ring. Oh sorry 16B.
Ring.. 20B?!
Ring, Ring, Ring..
Well when you figure it out give us a call! Until then how about a complimentary dish set just for playing!
What does one call removing funds when the bank is closed?
An END AROUND of course
Q: What do Krugman, most all of CNBC, Buffett, Fink and the likes of trolls like MDB have in common with the Grand Canyon filled with pickles?
A: They’re all giant dill-holes
And by double digits we mean hendeca digits.
I can't believe the Cypriot banks are giving the Russians their money....Oh wait.
i cant believe an airline has the balls to charge $2800 to fly there from O'hare.
ooops
As putin would say: FUCK THIS!! I'M OUT A HERE!!
It will be much much worse...
The 'have not's', both in Cyprus and around the world (and this includes many Cyprus bank depositors with fund deposit totals above the so called "insured limit") will finally begin to understand deep down in their gut just how 'have not' they are once it is fully understood how 'leaky' the supposedly closed Cyprus banks were for the 'haves'.
Okay, soooo, what's a bank run on a closed bank called?
Bank 'trots'..........as in 'leaky' diarrhea.
<Something stinks in the wood pile Cyprus.>
open the banks so we can watch them meltdown.
They're melting down right in front of your eyes, in real time, right now
Can't afford the popcorn...bring on the styrofoam peanuts!
drizzle a little (greek?) olive oil on them styronuts, helps them come out easier.
somewhere out there the London whale is having a good laugh at this. Sounds familiar.
Crude is rapidly approaching $100 and all the economic data is a miss, yet we are going to rip through all time highs. fascinating.
Brent is $108
It's the WTI to watch. Creeping...creeping...creeping
World buys at brent.
US and Canada base it on WTI, only because oil is flowing from Alberta, hence the Saudis could not control the flow and in 2009 switched to Brent, from WTI.
That's where most of manipulation occurs, Brent, where Saudis do their thing.
WTI has been suppressed below brent and the $100 mark so when it breaches the so called "psychological barrier" it's a problem imo. Plus WTI brent spread seems to be recoupling slowly which is why I think it's something to watch.
WTI is in contango due to Cushing and other storage places. Everything is full as far as I know.
Brent is in backwardation since there's no major storage venue in Europe.
All valid. I think we are agreeing on differning points about the signal. If gas goes over $4-5 in US people may actually think something is wrong.
Brent over $108, bullish if you ask me. Means theres a demand right???? Right?..... anyone.....
Crude oil is not like anything else. crude oil is like breathing air.
There is always demand for crude oil same as there is always demand for air to breathe.
Hence, different logic. Saudis are keeping crude oil price extremely high on purpose. Many reasons.
Yes it is ekm. I know I quoted the less used one. But let's go with Brent. It is $108. It has been there for a long time. This Cyprus situation may be a huge deal to Cyprus but that may not spread anywhere else.
I know you are of the opinion that crude has to fall. But the stock market no longer gives a crap if 99% of the people are too broke to participate in it. Maybe oil does not care if people can no longer can afford it either? Maybe this is the new normal.
Nothing can normally fall at this point.
It can only collapse, when the support will be taken away, due energy starvation.
Cyprus is a CARBON COPY of MFG, but at a country scale.
If it is a carbon copy of MFG then you won't see oil blink. MFG was nowhere near a Lehman. I am scared to think they accomplished what they needed to with Cyprus.
Incorrect.
Global bailout via FED swaps occured right after MFG. MFG crapped everything. Eurobanks ran out of dollars, LITERALLY.
Global bailout via swaps was a panic move. I think they would let it go, but decided at the last moment to cover then oil took off.
One reason: IRAN.
The question on the table is, if those banks in Cyprus stay shuttered, or go bankrupt...will it have any impact on the equity markets or crude/brent markets.
I don't remember the dates that MFG went down. I do know that whatever impact it had on the markets were not long lasting or substantial.
Octobe 2011, World swaps occured in Nov 2011 because europe literally stopped banking. They had zero dollars.
I remember very well WSJ live broadcast online (not on TV).
The reporter was saying that in a scale between 1 to 10 where 1 is very good and 10 is collapse, she rated the situation as 9.
Hence nobody really knows yet the repurcussions of Cyprus banks shutting down, only the insiders do. We'll find out...........soon
is my impatience becoming obvious?
If you're not short (you shouldn't be), just enjoy the show.
It's quite entertaining.
Russians, mafia, Draghi, Benny, Iran, Syria, Diesel-boom, Zerohedge.
I'm telling you, stop watching TV. Real entertainment is here.
You left out Japan, North Korea and (according to some here) annunaki or something.
I'm not saying it was aliens .... but it was aliens
MY LINE!
MY LINE!!
LOL :D well I'll see your Aliens and Raise you 1 MafiaWar!
I'm slowly coming to the conclusion that IRAN has been the key to continuing QE, believe it or not.
They can't decide when to attack. Nobody can attack if there is a global financial collapse. The public would be furious.
So who is the tentacle this time?
We are about to find out.
ZH will find out.
If I am to speculate: DEUTSCHEBANK
HAMMERZEIT !
http://www.youtube.com/watch?v=otCpCn0l4Wo
Moar haircuts!
I think they are already down to the "short hairs"...
Follicles.
Having poked a hole in the bank-deposit thingy, I mean, sooooo 20th century, we'll see how the ECB reacts to catching only the wealth of the average Joe Cypriot. Probably declare victory and say the crisis is over.
For a couple weeks.
Well, those "Russian hackers", who we all have to fear stealing our identities, helped out their fellow countrymen. Takes a lot more to trigger my shocked face these days.
"We will need an additional €10B" in 5....4...3....2....
Let it burn. The whole fucking evil fiat system. Get angry people. Hang these banksters and their shills in the world goverments! MOLON LABE!
Yes...they did not heed the words of South Park.
Yes, the Russians did and took their money out first...but to where? Oh, right, the non corrupt Russian Banks.
Does art imitate life or life imitate art?
But, but...gay marriage and stuff...
Well played, Temporalist. I almost spat out my coffee.
Me too, very timely...
Still laughing
gay marriage ? well it's obvious mate : you got to get used to stick something in your azz ! watch out, banker behind you !
Canada just put a special 1% surcharge similar to a levy on the six biggest Canadian Banks.Money will go into a special fund for safety.
Long Bail-Outs.
These were Russian owned banks it's fair to say? When you have access to the Banks liquidity you own it. But the Banks had no money so where did the Russians get the cash from?
How much of that is also due to people withdrawing cash all week from ATMs?
I think this qualifies as a bank run. I knew they were fucking idiots but this is unbelieably stupid. Any official statements on this?
Europe is fixed
Europe now, officially, has no balls. Or much of anything else, including fiat.
Hey Bernank, can we borrow your printer? For a fee of course.
The amazing thing is HOW the Russians got their money.
It all boils down to the SWIFT terminal inside the banks in Cyprus and the MT101 instructions.
But it still flows through the BIS SWIFT, so if Russians really did get their fund out they did it under the supervision and permission of the BIS -and hence the ECB/IMF hirer ups.
I think the extra week of chaos was on purpose - to give time for the banksters to move their money elsewhere while the little guy stands in line.
They did it via MT543
Usually when you get to the bottom of a hole you stop digging.
Yeah, easy for you to say. If you were the digger, how would you know you hit bottom exept by digging some more?
You dig me?
of course they let the Oligarchs get their loot - Cypriot politicians and their Eurocrat masters are many things but they are not stupid
lol, the russian mafia knows how to play houdini in 13th hour after the dictat !
Who said Ras-Putin was dead?
But the whole shooting match is 30 billion...Anyways, the Cypriots are going to scream to IMF/ECB for help...they don't want to sleep with the fish!
everybody CALM DOWN!!! the DOW is GREEN!!! i repeat, the DOW is GREEN!!!.........move along now..................
I need a Bloomberg terminal
Don't worry, he'll be terminated sooner or later.
The IMF will just pick up the hotline to Uncle Ben
Cyprus: Barber's Fat Finger Cut
I wonder when it will be discovered that Uncle Ben was not only behind this, but us poor US citizens, soon to be poorer, are footing the bill?
The EU is gut shot and doing a lot of bleeding and thrashing about.
Buy PMs to keep the arterial spray off of yourself.
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The Cyprus banking model will soon be emulated everywhere and banks will never open.
How long before the Russians circle the island with warships and just SEIZE the natural gas reserves?
Diesel Boom, Schäuble and Draghi got fist fucked till the glottis by the Russians! Ooohh those Russians
Diesel Boom is now my hero. I'm sorry to hear of his being discomfitted.
Based on the "feeler" amount it sounds like the russians were able to "leak out" 7.5 to 15 billion euros. Nice job! Single digit billion bailouts happen on a weekly basis in the eu so consider the matter under rug swept. All is well. Ramp on to Dow 15000.
Big deal. They've got nothing on Madoff. Small potatoes.
Oligarchs threatening my family's health and I work for one of these banks...they will open the vault (computers) and find nothing...