Cyprus President's Family Transferred Tens Of Millions To London Days Before Deposit Haircuts

Tyler Durden's picture


A day after former Cypriot President Vassilou was found to be among many elite Cypriot (politicians and businessmen) who had loans written-off by the major (now insolvent) banks; it appears the rot is far fouler than expected. In a somewhat stunning (or purely coincidental) revelation, ENETEnglish reports that Cypriot newspaper Haravgi claims that current President Nicos Anastasiades' family businesses transferred 'dozens of millions' from their Laiki Bank accounts to London just a week before the devastating depositor haircuts were unleashed upon his people. Of course, the denials are loud and Anastasiades has demanded an investigation into the claims; we are sure the government-selected 'independent' committee will be as thorough as the Libor anti-trust investigators. As a reminder, as we noted yesterday, here are Cyprus' gun control laws.

Via EnetEnglish,

A company owned by in-laws of Cypriot President Nicos Anastasiades withdrew dozens of millions from Laiki Bank on March 12 and 13, according to an article published in Cypriot newspaper Haravgi.


The newspaper, which is affiliated to the communist-rooted AKEL party, reports that three days before the Eurogroup meeting the company took five promissory notes worth €21m from Laiki Bank and transferred the money to London.


Responding to the allegations, Anastasiades said: “The attempt to defame companies or people linked to my family… is nothing but an attempt to distract people from the liability of those who led the country to a state of bankruptcy.”


The president added that no one, including himself, will be exempt from the ongoing investigations looking into responsibilities over the near collapse of the economy.


Anastasiades added that when the investigative committee convenes on Tuesday, he will request that its members look into this particular case with the same attentiveness as all other cases.


The company in question has firmly denied the reports.


Last Friday a list of companies and politicians that had loans written off by banks at the heart of Cyprus' bailout crisis was published in Greece and was subsequently handed to the Cypriot parliament's ethics committee. The list includes the names of politicians from Cyprus' biggest parties (excluding the socialist EDEK and the Greens).

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Sun, 03/31/2013 - 15:13 | 3393850 THX 1178
THX 1178's picture

How do the Cypriots feel about this now that its public info?

Sun, 03/31/2013 - 15:20 | 3393875 greased up deaf guy
greased up deaf guy's picture

hang them all!!!

Sun, 03/31/2013 - 15:23 | 3393884 JoeSexPack
JoeSexPack's picture

Damn it feels good to be a gangsta


Vassilou theme song.

Sun, 03/31/2013 - 15:33 | 3393908 toys for tits
toys for tits's picture

"The president added that no one, including himself, will be exempt from the ongoing investigations looking into responsibilities over the near collapse of the economy."

'We determine it to be the press's fault of ruining the economy for reporting this story.'

Sun, 03/31/2013 - 15:45 | 3393936 knukles
knukles's picture

More of those tin foil hat, conspiracy theory, crazy, accusation without foundation, libelous, slanderous, reason to control the press, right wing/left wing plots, seditious thought, reason for Gestapo....

Co fucking o incidences

Sun, 03/31/2013 - 15:47 | 3393947 kliguy38
kliguy38's picture

Agree....this is only a ploy to smear a good fact a politician of the highest order.



Sun, 03/31/2013 - 16:04 | 3394001 barliman
barliman's picture


Looking forward to Bruce Krasting's article justifying the transfer of ALL this family money. Bruce was a BIG SUPPORTER of insider trading being made legal a few years ago.

You can't get much more INSIDER than being the President's in-laws ...

Sun, 03/31/2013 - 16:05 | 3394005 General Decline
General Decline's picture


Sun, 03/31/2013 - 16:29 | 3394059 krispkritter
krispkritter's picture

All Depositors are equal, but some Depositors are more equal than others...

Sun, 03/31/2013 - 16:41 | 3394076 Boris Alatovkrap
Boris Alatovkrap's picture

... is written so on wall of Cypriot bank.

Sun, 03/31/2013 - 16:50 | 3394090 SafelyGraze
SafelyGraze's picture

during this Holy Weekend, innocent depositors around the world give up their money to pay for the debts of others

no longer called a "bail-in" .. now it's "propitiation" and "atonement"

Sun, 03/31/2013 - 19:01 | 3394367 The Big Ching-aso
The Big Ching-aso's picture

What an arrogant asshole.

Sun, 03/31/2013 - 19:05 | 3394380 ebworthen
ebworthen's picture

"Inside Job", again.

Sun, 03/31/2013 - 19:12 | 3394397 Muppet Pimp
Muppet Pimp's picture

The lesson from Cyprus for anyone who gives two shits about their future financial well being is to get your money out of the G-SIFI's (Globally Systemically Important Financial Intstitutions) aka TBTF banks.  There were numerous warning shots fired in Cyprus for several months prior to this debacle, and those who did not heed the warnings paid a stiff price for their (lack of) actions.  One might want to have a good look at this:

In particular I draw you attention to page 10 which shows the global web of derivatives.  You might want to consider moving your deposits out of any of these entities, particularly if you are unable to quantify the risk on their balance sheets (you can't).  By that I mean move your fucking cash somewhere safe and sound, in particular you might consider a more local bank, particularly one with a high credit rating and people running the show who are active in supporting their communities, and have known home addresses (but I digress). 

See this if you believe the TBTF banks have any idea of their exposures:

That assessment means that it is impossible for the firm’s external auditor to sign off on the financial statements until and unless the control breakdowns are remediated sufficiently for the auditor to provide assurance.

Read more at Yes, their fucking auditor cannot even figure out their risk. And of course, if you think it cannot happen to you, please also read this:

Of course, as in all things he who moves their money first (pre bank run) often moves best.  The warning shots are being fired.  It is blatantly obvious even to the casual observer that these entities are too powerful to exist.  It is also blatantly obvious that DC will not be doing anything that will harm their funding source (see Eric Holders corrupt justice deparment, google "Too Big to Jail"). 

It is important to consider the following items:

- Eric Holder work"ed" for Covington & Burling defending these big banks from accountablility prior to moving his operation over to our (US) justus department.

- Lanny Breuer who refused to prosecute any of these banks or their officers is going "back" to work for Covington & Burling to continue his work shielding them from accountablity for their actions.

- Even a fool can see that Lanny obviously has a soft spot in his heart for these institutions as he defended them prior to his stint as DOJ, during his stint at DOJ, and now after his stint at DOJ.

So.....a layman might deduce that the only way these fuckers will be dealt with is by the central banks.  And a layman might also deduce that they wiped out the depositors in Cyprus, so they mean business.  This is the sort of thing that having the intestinal fortitude to deal with head on earns you a spot in the history books.  It would be a mistake to think the corruption will never end, someone will eventually do the right thing, and history will look upon them favorably for having done good for their people.  Expect it.

Richard Fisher may in fact be that guy, we shall see.  He has made it his problem to deal with these things, and for that we should be thankful.  Richard is a good man doing good work towards this end.  See this:

customers, creditors and counterparties of all nonbank affiliates and the parent holding companies would sign a simple, legally binding, unambiguous disclosure acknowledging and accepting that there is no government guarantee—ever—backstopping their investment. A similar disclaimer would apply to banks’ deposits outside the Federal Deposit Insurance Corp. (FDIC) protection limit and other unsecured debts.

And a layman might conclude that in an era of fractional reserve banking, it might be best to move your money prior to this form being sent out, as the TBTFs (or G-SIFIS) do not have all the funds to sastisfy all of the request at once, and the implementation of this alone might be enough to cause some headaches for folks who have a tendency to procrastinate.

The ones running the financial end of things do not want to take the heat for causing any problems, so expect them to create conditions whereby slowly but surely the markets do it for them.  They seem to be well along in this process.  Don't let Cyprus happen to you.




Sun, 03/31/2013 - 20:22 | 3394524 mumcard
mumcard's picture

Yes!  Get your paper out of there!  Keep it safe...

Sun, 03/31/2013 - 20:06 | 3394498 GlobalCtzn
GlobalCtzn's picture

General Decline says "Tall trees, short ropes."


I say why not use some long ropes? It is fun to watch some of their heads pop right off when they get that extra bit of velocity going.

Sun, 03/31/2013 - 16:07 | 3394006 General Decline
General Decline's picture


Sun, 03/31/2013 - 16:23 | 3394050 Monedas
Monedas's picture

He wasn't trading .... he's a politician !  Trying to control insider trading .... is inviting big brother to snoop at will wherever he wants !

Sun, 03/31/2013 - 17:25 | 3394111 MrNude
MrNude's picture

''Bruce was a BIG SUPPORTER of insider trading being made legal a few years ago.''

He had a good point though if you look at it laterally, do you think insider trading by the likes of Nancy and friends in the Senate will just suddenly stop? You might as well level the playing field out.

You see they don't want the little people doing it because it will poison the well and make it harder for them to profit from. They want it to remain a good old boys club where they all scratch each others back and get a taste, not a talk shop infested with filthy plebs i.e. you and me making the waters murky and harder to score a quick buck.

Sun, 03/31/2013 - 22:03 | 3394779 barliman
barliman's picture


When Bruce ran the "make insider trading legal" post, I replied with numerous instances of where insider trading would release unending havoc on all players big and little.

Like many of Bruce's posts, the insider trading post was based on the VERY narrow world view of someone who has spent his life inside a corrupt system and is blind to the corruption he wades in.

The insider trading will stop just BEFORE the global economic collapse some of the insiders start ratting out their brethern in the hope of getting away during the commotion.

Sun, 03/31/2013 - 18:07 | 3394213 Tucson Tom
Tucson Tom's picture

"Hello John,Could you quickly give me the name of your attorney.Thanks Mr Corzine."

Sun, 03/31/2013 - 18:07 | 3394211 Son of Loki
Son of Loki's picture

The Japanese PM told his people, "it's only a tiny worries" while every major embassy in Tokyo was evacuating I read.

Sun, 03/31/2013 - 15:34 | 3393914 Irelevant
Irelevant's picture

I am shocked, SHOCKED, I tell you to find out that the corruption within the EU`s political class is bone marrow deep.

Now back to usual programing!

Where is that old fuck that was complaining on TV how he lost all his money, even after the Laiki branch manager told him everything was ok.

How stupid can you be, are they not seeing the forest from the trees? WTF? Didn`t they see what was happening in Greece 2 years ago, or even 1 year ago? How the Greeks are getting fleeced every day!

I guess we, Europeans, are masochists, deliver us to our fate.

Sun, 03/31/2013 - 15:45 | 3393938 Mountainview
Mountainview's picture

Alternatives, step forward!

Sun, 03/31/2013 - 15:52 | 3393963 wee-weed up
wee-weed up's picture

Time to break out the axes and pitchforks...

And rope... lots of rope!

Sun, 03/31/2013 - 16:43 | 3394078 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is prefer to piano wire.

Sun, 03/31/2013 - 18:12 | 3394227 smlbizman
smlbizman's picture

you know what? at this part of the game and you have money, and you do not have the hedge as your homepage, you should lose........i give out  zerohedge like  business cards to anyone that should see it.....i think it is just as effective as handing out real business cards....that never worked either....

Sun, 03/31/2013 - 20:03 | 3394493 thisandthat
thisandthat's picture

A year or two ago they did a poll in Portugal and about 90% of people considered ALL politicians to be corrupt, political institutions, even justice, etc. weren't too far behind...

Sun, 03/31/2013 - 16:16 | 3394026 resurger
resurger's picture

When justice is gone, "Let the streets be the courts and let the courts hold the trial"

Sun, 03/31/2013 - 17:35 | 3394169 HulkHogan
HulkHogan's picture

Crucify them all!!!! Happy Easter.

Sun, 03/31/2013 - 15:54 | 3393972 Silver Bug
Silver Bug's picture

What a complete joke. When are the people going to rise up!?

Sun, 03/31/2013 - 15:59 | 3393984 little buddy bu...
little buddy buys the dips's picture


Sun, 03/31/2013 - 17:20 | 3394146 Pure Evil
Pure Evil's picture

They'll rise up as soon as the NCAA finals are over. If not then, right after the NBA finals. And, if not then, right after the World Series. And, if not then, right after the 2014 Super Bowl.

I guarantee!

Sun, 03/31/2013 - 18:09 | 3394216 Son of Loki
Son of Loki's picture

SB, they're too busy bidding for Kim Kardashian's [used] G-string on Ebay.

Sun, 03/31/2013 - 16:08 | 3394010 Troublehoff
Troublehoff's picture

Interesting warning from a well respected British financial magazine:

Sun, 03/31/2013 - 18:39 | 3394303 smacker
smacker's picture

Agreed, well worth listening to ...for those with nerves of steel!

Sun, 03/31/2013 - 16:22 | 3394045 Winston Churchill
Winston Churchill's picture

I will speak to my Cypriot in laws and my sister and find out tomorrow am.

They have been adding their losses up.The very extended Cypriot family

my sister married into look like they lost nearly 3 m euros between them.

They are past the shock stage, just going into the rage , and are armed.

But on an island with hostile neighbours , foreign military bases ,and a UN

peacekeeper force on the ground,they will be easily crushed.A perfect test bed.

Sun, 03/31/2013 - 17:36 | 3394164 Leopold B. Scotch
Leopold B. Scotch's picture

This is why handguns are the ultimate enemy of the tryanical authorities.   Concealed neatly, they can create lots of problems for the power structure who would more easily spot an AR or AK style weapon used by those protecting themselves from some type of tyrany or worse. 

Not saying the latter is useless, though.  However, freedom fighting guerrilla-held handguns means the local chiefs of corruption can get their's and never see it coming.

Sun, 03/31/2013 - 19:27 | 3394424 Socratic Dog
Socratic Dog's picture

That's called suicide.  If you're going to give up your life to get the bastard, you might at least strap on a belt full of explosives and take out his friends as well.

Dang, did those awful muslimes have it right all along?

Mon, 04/01/2013 - 02:19 | 3395207 GeoffreyT
GeoffreyT's picture

I think it was William Blum who said it best... "a terrorist is a man who has a bomb, but doesn't have an air force". Or words to that effect.


Srsly though... handgun? Nah - too inaccurate, and you need to be close so you get collared by their goons (why the fuck does anybody from the bottom 4 quintiles still want to work to PROTECT these fucking scum?).

A Chey-Tac Intervention (aka M200) or an M82 (aka Barrett) - maybe a SV-Dragunov if you want to drop down to 7.62 and get easier access to brass. You don't get many shots (5-7; 10-20 with a SVD and reverse-taped mags) but for damage at a distance they cain't be beat.

What folks sort of don't understnd is that when shit gets real .gov could not prevent 20 well-trained guys thus armed, from going on an absolute pig-hunt anywhere that the parasite-political class congregates.

As we saw when the half-trained Branch Davidians had the temerity to shoot back, cop 'marksmen' are too cowardly to hold a position. So guys who were out just to wreak carnage on the political class (and had no intention of trying to hold territory why the DHS fetched its armour) could get rid of half a dozen political scumbags and send a decent chilling message to the rest.

The US has almost a million vets from its recent military fuckups - and an awful lot of those are not hugely happy about how shit's going down.

Mon, 04/01/2013 - 00:21 | 3394750 psychobilly
psychobilly's picture

"This is why handguns are the ultimate enemy of the tryanical authorities."

Ridiculous.  Pistols have their uses, but it's a lot easier providing security against threats at effective handgun ranges, compared to say against rifles with an effective range of 300 - 1600+ yards (i.e., outside the effective range of the glorified varmint rifles that are so popular with military/LE).

Mon, 04/01/2013 - 02:26 | 3395210 GeoffreyT
GeoffreyT's picture

^_^ what he said. Any of about fifty different international sniper variants at 7.62, 0.408 and 0.50cal are easily-obtained (even in Australia, which is a Sovietised disarmed zone). I am constantly surprised that the murder-for-hire industry doesn't include more ex-snipers.

Mon, 04/01/2013 - 16:10 | 3397085 Svendblaaskaeg
Svendblaaskaeg's picture sad

Sun, 03/31/2013 - 16:44 | 3394081 hampsterwheel
hampsterwheel's picture

We will soon (as will the Bankers) as to what kind of people live in Cyprus - the meek or the brave - my money is on the meek - not one bankster has been shot over this in Europe - nor has one veggie seller lit himself on fire yet -

Sun, 03/31/2013 - 18:00 | 3394202 Henry Hub
Henry Hub's picture

***not one bankster has been shot over this in Europe***

Not one bankster has been shot over here either...much to my surprise!

Sun, 03/31/2013 - 18:00 | 3394203 azzhatter
azzhatter's picture

Why is Angelo Mozilo still alive? Dimon, Geithner,Paulson,Blankfuck,Thain,Fuld? Why hasn't anyone taken one of these fuckers out?

Sun, 03/31/2013 - 21:58 | 3394733 essence
essence's picture

The patriotic SEAL team 6 members are ether too busy writing a book or DEAD.

Regardless, don't look for any signs of awareness there. Those folk are order takers.
They were chosen for that quality.

No one rises very far in the military/intelligence/Judicial/Gov bureaucracies these days unless they leave any ethics & morality behind and swear allegiance to the corrupt establishment .

Recall all those military heavy hitter line officers that were suddenly removed from duty recently.
WTF was that about?

Sun, 03/31/2013 - 18:44 | 3394315 Winston Churchill
Winston Churchill's picture

It wll be the older ones.

EOKA veterans ,now in their dotage maybe,but mad as hell, with their life savings

wiped out..

Sun, 03/31/2013 - 18:01 | 3394205 azzhatter
azzhatter's picture

I'm quite sure this will be the lead story on CNBC monday morning

Sun, 03/31/2013 - 18:43 | 3394313 Buck Johnson
Buck Johnson's picture

They soon will be, and that president saying how wrong and an investigation yada yada yada is bullshit.  He knows that Cyprus has no power to take what his family moved.  He knows when push comes to shove hell just leave and be the end of that.  The fix is in, the rich and politically connected get their money out and the rest get fucked.  Welcome Cyprians to the REAL WORLD>

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