EU finance ministers approve Cyprus bailout deal, funded by bank assets seizure

foxnews ^ | March 25, 2013 | FoxNews.com

[redreno]

magine waking up to find out that as much as 40 percent of the money you thought was safely deposited in the bank was seized, without your permission, to bail out a near-bankrupt government.

That's just what thousands of large depositors in Cyprus woke up to Monday morning after European Union officials accepted a last-minute deal offered by the island's lawmakers to secure a $13 billion bailout to avert imminent financial meltdown.

[Olog-hai]

EU = crooks.

[Toddsterpatriot]

40 percent of the money you thought was safely deposited in the bank was seized, without your permission, to bail out a near-bankrupt government

I'm pretty sure it was seized to bail out the bankrupt banks.

[Oberon]

So... remind me again, why do we put money in banks?

[DownInFlames]

Once this happens globally, the global economy will collapse. Depositors will pull their money and credit will dry up. This will be a repeat of 29 but violent.

[VRW Conspirator]

Methinks that this is the first crack in the dam. I truly believe that we will trace the impending economic collapse to this moment in history.

[Toddsterpatriot]

Why would it happen globally?

[EEGator]

Why did the bondholders lose nothing?

[John W]

Seems as though Wall Street initially liked this a little then maybe reality began to creep into their minds as it’s now down.

[Lurker]

Isn’t that what bankruptcy courts are for?

[expat2]

Because most of the bondholders are German banks.

[Toddsterpatriot]

Why did the bondholders lose nothing?

It appears they did.

WSJ

[EEGator]

Oh, it’s okay then. :)

[Toddsterpatriot]

I’m not familiar with bankruptcy courts in Cyprus.

[EEGator]

It won’t let me read the article. I believe that it refers to the smaller of the two banks. I believe the main bank’s bondholders lost nothing. Correct me if I’m wrong.

[expat2]

To the victor go the spoils.

You wouldn't want to hurt Angela's shot at re-election, would you?

[EEGator]

Of course not. That would be blasphemy.

I don’t understand why rich people in every EU country wouldn’t pull their money out now though.

[what's up]

Because there are very few countries left asking for a bailout, especially after this. And this is probably exactly why the EU did this...to indicate that free bailouts were a thing of the past.

[Toddsterpatriot]

My understanding is that the deposits are much, much more than the bond issues.

[EEGator]

I thought Spain and Italy were still in deep S**t?