I believe they actually do have that right and, besides, your money isn't there. It's been lent out or invested in Greek bonds [which caused this crisis in the first place when the EU made Greek bondholders take their haircut. The Cypriot banks lost about half their reserves].
The same is true anywhere in the world -- only about 10% of your cash is at the bank. They just depend on the fact that everyone won't want his at the same time.
“The same is true anywhere in the world — only about 10% of your cash is at the bank. They just depend on the fact that everyone won’t want his at the same time.”
Then how can they take the 40% from depositors, even from a limited number of depositors who are subject to the 40%. Is there even enough cash in reserve to cover the 40% withdrawals? Remember, the 40% fee is based on total deposits above the $100,000, not the total fractional amount in reserve. Unless I’m missing something here, do these socialists ever realize the consequences what they’re doing? Or more than likely they just don’t care.