So Who Knew? In February Cyprus Deposit Outflows Soared To A Three Year High

Tyler Durden's picture

The decision to crush Cypriot depositors (first all of them, then just the uninsured ones) came in March, without any prior hints of the carnage that was about to be unleashed upon Cypriot bank unsecured liabilities. Or so the media narrative goes, because the last thing needed is to give skeptics any indication the "ad hoc" Troika plan was not so ad hoc after all, and some individuals - notably the whale depositors - were warned in advance, sparing them the indignity of pulling a few billion at €300 per day. Alas, as just released central bank data shows, there may be cracks in the narrative because in February, at a time when the Eurozone was supposedly getting better every day and the Dow Jones was on the verge of its all time high, Cypriot depositors pulled the largest amount of cash in over three years.

Add this curious finding to the to do list for the 'task force' investigating who not only circumvented the capital controls, but had advance knowledge it was coming. Surely they will get right on top of that.

Source: Goldman

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ekm's picture

All pre-planned. Everything is pre-planned, the only issue is whether the outcome is as per plan or not.


These events were pre-planned:

- Bear sterns collapse

- Lehman collapse

- MFG collapse.


If this article doesn't convince you of that, I don't know what else is going to convince you.

Pladizow's picture



Ex-KGB to Banker:


You know... I think that you've gotten the wrong impression about me. I think in all fairness, I should explain to you what it is that I do. 

For instance, tomorrow morning I'll get up nice and early, take a walk down over to the bank and walk in and see you, and, uh... if you don't have my money for me, I'll crack your fuckin head wide open in front of everybody in the the bank. And just about the time that I'm comin' out of jail, hopefully, you'll be comin' out of your coma. And guess what? I'll split your fuckin head open again. Because I'm fuckin stupid. I don't give a fuck about jail. That's my business. That's what I do. And we know what you do, don't we, Charlie? You fuck people out of money and get away with it.



GetZeeGold's picture



You can game a bankster....but never screw with the KGB.

old naughty's picture

 "I'll crack your fuckin head wide open..." 

There's no need for that, Komarde.

Why don't you take the money in one shot, ahead of the $300 a day as that would take you thousands of years.

Race Car Driver's picture

> So Who Knew?

Jew knew - that's who.

Pure Evil's picture

My bet is the Russians were pulling deposits due to the Syrian fiasco. Syria is their ally in the region, and this was retaliation for NATO causing the turmoil in Syria itself. The Russians were sending signals to NATO for months. Everything from sending warships to troops along with communiques and NATO ignored it all. Not a lot of money to pull out, but enough to cause the EU consternation. From my current reading of news events NATO has backed down in Syria, but we'll see going forward. 

Or the Russians are getting out ahead of the US/Israel/NATO backed war against IRAN. Syria is just a stepping stone for the neo-CONS and their desire for blood lust against the Persians.

Just my opinion though.

ConfederateH's picture

Or the money was pulled out by the russians on behalf of a German faction that wants to see Merkel out.  Or perhaps Hillary and the CIA are trying to foment instability in natural gas great game.  The gods are fickle, at least so are the ultra rich who think they are gods.

SMG's picture

Hello new blame misdirection troll.

Race Car Driver's picture

So ... in two posts or less - who do you blame? Be realistic.

fonzannoon's picture

Cyprus Citizen to Banker:

Wow Three hundred Euro!


toys for tits's picture

What the Troika was going to do was published in the British MSM. Since there are a lot of Brits in Cyprus is makes sense that they would withdraw.

From Feb 15, 2013 BBC:

There have also been suggestions that private depositors with investments of more than 100,000 euros should be obliged to endure a "haircut".

From Feb 11, 2013, The Guardian:

According to reports, the so-called bail-in would involve investors and depositors providing up to €10bn to recapitalise Cyprus's banks, cutting a bill that Brussels estimates will reach €17bn.

From Feb 18, 2013, Financial Times:


One remedy is a debt restructuring, similar to that applied to private-sector holders of Greek government bonds. Another is to reorganise the banks, as in Spain, and impose losses on deposit holders.


SmallerGovNow2's picture

Shit! Right in plain sight...  Thanks for the reporting...

francis_sawyer's picture

2 questions [one legit & one silly]


1. At the time of publication, were those articles 'PAY PER'?

2. How many 'cookies' &/or other goodies were streamed through those links?


I'm not saying this was the case... But these days I'm skeptical about just about everything... Like how EASY it might be to publish an article with a 'PRE' date on it to give an out for...

"Look ~ You were warned all along, it was right there"... It's probably as easy as photoshopping birth certificates...

WallowaMountainMan's picture


and for those of you who want more:

'Anastasiades said recently speculated options to make debt manageable - from a sovereign debt writedown to imposing losses on depositors - were out of the question.'

the cypriots were afraid it was going to happen. that's one reason they elected anastasiades. he campaigned against losses on loans.

 'loans' , i meant deposits as in the quote.

my bad


unununium's picture

Thank you TFT.

Now I'm wondering how old was is the data that was/is being used to set the haircut levels? That would seem critical.

SAT 800's picture

"Schocked, I'm schocked I say, to find that gambling has been going on here, Rick".  Imagine that, people sending money out of Cyprus Banks; silly people; don't they have faith in the Establishment? Tch, tch.

fomcy's picture

And why exactly GOLD is tanking again? Because Cyprus Banks are "Re-open" and let
poor people to get 300 Euro out of their accounts per day? What a Joke.
Every morning same shit. This is getting ridiculous. Watch that ATTACK on PM's now..

azzhatter's picture

try and get someone to sell you their physical for that price

Not My Real Name's picture

I know. It makes zero sense. On the bright side, I'm going to enjoy the sale for as long as it lasts.

ZeroBoBo's picture

"And just about the time that I'm comin' out of jail, hopefully, you'll be comin' out of your coma. And guess what? I'll split your fuckin head open again."

This line is pure poetry. You made my day! :-)

fonzannoon's picture

ekm please see this special message that I have sent to the Cyprus citizenry on behalf of everyone on here.

ekm's picture

Good morning Fonz.

Youtube is blocked here at work, so I'm going to wait until 6pm when I get home to watch it.

fuu's picture

Create a throwaway gmail account.

Log into gmail.

Launch youtube from within gmail.

Many times that will get around filters.

francis_sawyer's picture

does it get around the 'eye in the sky' up there on the ceiling corner that's peering into your cubicle [probably HOPING that you log onto some porn]?...


Fuck ~ nowadays you practically have to wear a ski mask & rubber gloves even if you pay cash for a bag of Doritos at the grocery store...

NoDebt's picture

Love that movie (Office Space).  Gotta go.  I got a meeting with The Bobs.  After that I have to finish my TPS reports.

ekm's picture

I had thought that there were only two ways to plug the black holes of derivatives from time to time:

1) Load up one primary dealers or two with bad assets and sacrifice them.

2) Go to war


I never thought a 3rd option was getting thought out:

3) Expropriate your own population.


We learn something new every day.

fonzannoon's picture

I hear you. So have they plugged the hole? Mission accomplished? Brent is still pushing up so I am guessing you don't think we have seen the reprecussions yet, correct?

ekm's picture

Oh no.

They've started plan # 3 last week. Outcome UNKNOWN yet.


1) How big is the hole that 85 billion/month can't cover any longer?

2) How much would the expropriation be for the whole west? Cyprus is just the test.

3) Reducing people's money reduces spending.


The outcome is guaranteed to be very bad. The question is whether it'll be a disaster.


I say, yes. However, one thing has to be clear:


fonzannoon's picture

If Europe starts to crater and the Bernak says he feels it would be prudent to go to 150 bil a month, do you think the media would injure themselves tripping over themselves to kiss his ass and tell us all how wise he is to do that?

ekm's picture

Again and again reminder:

Printing of money = Buying of collateral = Buying of bonds


Currently, collateral is quite scarce, not much left to buy.


The Fed is leaving almost nothing for the banks and brokerages to trade with. There is limit to QE. Fed can't buy vacuum.

fonzannoon's picture

You are losing me here, and I apologize for that. I hear you saying that 85 bil is not enough. So I draw the conclusion that you mean 85 bil is not enough to cover the deleveraging. Meaning QE is not going to buy bonds. It is literally being digitally added to banks balance sheets to plug holes.

I also hear you say they can't do much more of it because there is not much left to buy. That implies that there may not be much left to buy and a PD would have to explode for the fed to have something left to keep buying.

This stuff gets confusing.

ekm's picture


I bet with you and you win $1000.

Problem I have only $50 and some junk at home I can't sell.


So I go to my rich uncle and ask him to buy my used car for full brand new price which is $200. So I give you $200. 


Problem: I have nothing else to sell now and I still owe you $800

I eitther give you all my money $50 and remain with zero or I simply default.

fonzannoon's picture

You bet with me and I win $1000

Problem you have $50 and some junk.

If you can't pay then both you, me, and all our friends and family including your rich uncle go to hell in a handbasket.

Your rich uncle comes in and hands you $1000 and tells us both to stop fkin around.

We go to the steakhouse to celebrate and while we are there we make another bet....

I'm not even being sarcastic.


ekm's picture

He can't since they only way for him to create money is if he buys something from me.


The Fed does NOT create money, I repeat the Fed does NOT create money out of nothing.

The Fed MONETIZES assets already created, hence the need for the Federal Government to increase the debt limit in order to sell treasuries, so the Fed can buy the treasuries, thus creating money.


In essence, it's the Congress that creates BASIS MONEY by increasing the debt limit. The Fed just monetizes the bonds.


If congress/treasury do not offer new bonds, the Fed CANNOT create money.

If the Fed bought stocks directly, they would create money by owning the stocks.

fonzannoon's picture

I have to run. I would like to continue this at some point. Have a good one.

hapless's picture

"The Fed MONETIZES assets already created, hence the need for the Federal Government to increase the debt limit in order to sell treasuries, so the Fed can buy the treasuries, thus creating money."

At this moment, there is a water droplet running down the outside of my office window.  For today and today only, I will sell it to you for $85 billion.

ekm's picture

More or less. You get the point.

unununium's picture

Your point seems to be that water droplets are scarce.

You do know that, at the moment, there is no debt ceiling in the US.

fonzannoon's picture

ekm the fed does not buy bonds directly, the PD's buy them and flip them over to the fed. What is to stop the same process from happening with stocks?

ekm's picture

As far as I know, nothing.

They can pretty much do whatever they want, if the White House and Congress allows them to do so......and BRENT VIGILATNES.


It's all about crude oil price, at the end.

Boxed Merlot's picture

the fed does not buy bonds directly...


Isn't this describing the old way?  Now Ben's buying up all Fanny and Freddie's junk and turning it over to BAC, JPM, Citi, etc. in order to perfect their legal standing and paper over their fraudulent MERS activities.  45B "domestic" and 40B "foreign" monthly blood being fabricated in the marrow of the fed's boneyard is not enough to stem the bleeding of the decapitation of Justice's head.

NoDebt's picture

EKM- the only part I disagree with is that they are running out of assets to buy.  Plenty of crap left for them to buy.  And, of course, the federal government will always be happy to oblige and create more debt for them to snap up.  At present QE4EVA is only monetizing about half the yearly federal deficit.  The other half of the $85B being used, of course, to buy bad mortgage assets.

Oh, and a bonus thought here.... am I the only person on the planet who finds it ironic that QE4EVA is finally doing what TARP was original supposed to do, and sold to Congress as such (buy bad mortgage assets out of the banks)? 

Nobody else seems to find it at all remarkable that The Fed is buying mortgage assets now as just a normal Fed policy (i.e. without requiring Congressional approval) what required direct Congressional approval and taxpayer money in TARP.

So if they could have just bought the bad assets out of the banks in 2008 without Congressional approval or money, exactly as they are doing now under QE4EVA, WHY WAS TARP EVER NEEDED??

The answer, of course, is directly related to your point- they only conjure money out of thin air to buy pre-existing assets.  Recapitalizing a bank is not buying pre-existing assets.  They knew they were going to use TARP money to recapitalize the banks all along.  If that wasn't the plan they wouldn't have needed TARP- they would have just bought the motgage assets 5 years ago exactly the same as they are doing today.

ekm's picture

It's up for discussion.

I think they'd be forced to stop it by next meeting.

I was expecting a wind down last meeting.


We'll see.

Teamtc321's picture

Reminds me of the rich kid who tears up new trucks as fast as daddy can buy them. Then goes off to a nice liberal college for, oh say 8 years snorting, twinking, waking up late. 

Once out, can't find any productive companies to hire him or skirts the edges of a few companies to build a few paragraphs on a resume.  Then goes to work in a Bank somewhere.

Remember the above story the next time you look at a Banker, I will bet you that 1000 bucks there is a similar story to the day, the Mfing banker you are looking at has under it's belt. 


1000 Bucks?

j0nx's picture

I like the reference 'its belt'. We all need to remember that these people are not human beings. They are sociopathic lizards hell bent on destruction.

TeamDepends's picture

3) Reducing people's money reduces spending.

There is an interesting corollary here with Obamacare:  Reducing people's heart rate (to zero) reduces breathing.