Skip to comments.Big depositors in Cyprus could lose up to 60 percent of savings
Posted on 03/31/2013 1:36:58 AM PDT by John W
Major depositors in Cyprus's biggest bank will lose around 60 percent of savings over 100,000 euros, its central bank confirmed on Saturday, sharpening the terms of a bailout that has shaken European banks and saved the island from bankruptcy.
Initial signs that big depositors in Bank of Cyprus would take a hit of 30 to 40 percent - the first time the euro zone has made bank customers contribute to a bailout - had already unnerved investors in European lenders this week.
But the official decree published on Saturday confirmed a Reuters report a day earlier that the bank would give depositors shares worth just 37.5 percent of savings over 100,000 euros. The rest of such holdings might never be paid back.
The toughening of the terms will send a clear signal that the bailout means the end of Cyprus as a hub for offshore finance and could accelerate economic decline on the island and bring steeper job losses.
(Excerpt) Read more at worldnews.nbcnews.com ...
They are not going to lose 60% of their deposits over 100,000.00, they are going to lose all of it.
Let the socialists try that in the USA. Watch the rebellion.
What the story doesn’t indicate....is that there are Russian billionaires who stand to lose their bulk, and likely dozens...if not hundreds...of bank officials on the isle who will either be shot, or strangely disappear. All of these unwise investments that the banks engaged in...will involve pay-back.
About a month after the banks have all reopened....it’ll be hard to find any of the managers living on the island anymore.
The Russians got their money out while the banks were closed.
This would not be happening otherwise.
None of the sheep will rebel, because they will have traded a "risky" investment for a guaranteed pension.
Watch for this plan to get some momentum if Pres Obama gets a Demoncrat House in 2014. It will be announced right after the next big stock market correction - they have to "save" our retirement funds.
That idiot little currency symbol, , is at risk. If Europe stands behind Cypress, nothing less than 100% will suffice. If less, then is trash! (But we already knew that!)
Maybe Cyprus doesn't have a 2nd Amendment.
“...the first time the euro zone has made bank customers contribute to a bailout...”
In precisely the same manner that looters make citizens contribute to their home furnishings.
This is nothing more nor less than a massive act of outright theft, plain and simple; there’s no way possible to sugar coat this with tortured rhetoric.
That's correct. While they were closed in Cyprus, the Cyprus banks were open for business in Russia and London.
Rumors? This is not a rumor. They were already discussing this back in Sept. of 2008. It is hard to find the real/valid evidence of this on the web anymore, but the plan is maturing on someone’s desk and has been his entire first term.
The current world currency (whether you measure it in Dollars, ounces of gold, Euros or Quatloos is... oil.)
The NEXT world currencies?
Water... and food.
Socialist? You have it backwards.
There are two ways this can go:
1) These people invested with banks that went insolvent. Bank can’t pay them, so their customers lose ALL of their money.
2) The government takes a loan from the EU, indebting the country and destroying its credit rating in order to save people from their own bad decisions.
So, which one is socialist and which one is capitalist? You’re mad at the EU because they’re only going for 40% socialist. You think they should be 100% socalist.
And still you have morons in this country pushing Free Trade, NAFTA, North American Union...even though the EU is falling apart and bankrupting everyone
This will turn out very badly. If I am a Russian oligarch, I’m going to put some button men together to deal with enough government officials to make them change their minds.
Have already started considering yanking my savings out of the bank so Obama(care) can’t steal it.
> About a month after the banks have all reopened....itll be hard to find any of the managers living on the island anymore.
The key word is “living”. The Russian Mafia is a little more brutal and less forgiving than the Sicilian boys. I worked on several cases back in the late 90’s involving them. They know no boundaries either. Doesn’t matter if you live on another continent. They are all over the place including strong concentrations in PA, NY, and FL; probably NV by now since the Sicilian mob has declined a little.
The Russian oligarchs have already gotten most of their money out of the banks, as well as the Brits. They were taking their money out while the banks in Cyprus were closed, through the bank branch offices in London, and elsewhere. All that’s left are the poor saps with no access to said branch offices in other countries.
I want everyone to take note (and make the case to everyone they know) that “wealthy” include those who saved all their lives for retirement.