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.
Oh yeah. The ones who had the REAL money flew to London (THAT DID NOT HAVE A LIMIT AND WAS NOT CLOSED) and withdrew their money while the poor suckers who lived in Cyprus were there waiting on the banks to open.
“.They are not going to lose 60% of their deposits over 100,000.00, they are going to lose all of it.”
And I can see obama rubbing his hands and salivating in anticipation of doing the same here.
He doesn't have to confiscate the actual banknotes, he can make them worthless instead, which is the way it is already being done in the USA. It is called QE.
So take your millions out and hide them in your mattress. After a couple of years of unlimited QE they will buy a loaf of bread.
But you will still have your money, right?
It has already been done but not at banks. The firms AMBAC and AIG had bond holders lose their bonds and they were replaced by common stock.
When the air clears, the devalued stock rises in price. The rise in price of the stock will improve the position.
This should have happened at GM but did not. The tyrant in the White House stole the total bond holder position and gave it to the UAW. The Black thief is no better than the common ghetto street criminal.
“Let the socialists try that in the USA. Watch the rebellion.”
We have gone too far toward the mecca of a total utopian society and the “takers” far outnumber the “makers.”
The current gun control and health control issues prove the point. Over the past 50 years our public indoctrination centers (public schools and universities) along with politically correct TV, movies and all forms of entertainment, and special rights for all but the normal law-abiding citizen, have destroyed the core values of the American citizen that used to exist prior to 1964.
No, the sheep and lemmings will simply do what they are told to do without question.
Today they are coming for our guns and the general population cheers with glee that we will all be saved from violence by our master, Obama.
Tomorrow they will come for your retirement savings, checking balance, personal property and all manner of personal financial security and wealth once the private ownership of guns has been taken care of.
It’s coming as sure as rain. It’s a “one way street” with no possibility of turning off on another road.
“Bread and Circuses” killed Rome and now the same is happening to us.
The only hope we have left is a civil war to restore the values given in our original Constitution as it was written. It cannot be done by educating the public as to what has happened to them over the years since the public school system and the Marxist universities and secondary educational institutions along with the main stream media gained complete control of the education and morals of our citizens and their children.
That may be why Homeland Security bought a stockpile of ammo and armored personnel carriers.
The modern banking model no longer can sell interest for your money, so it offers those other services.
The banks are fractional reserve banks, so the money isn't even there. It's been loaned out 10:1.
How can the government confiscate 60% of something for which there is only 10% at best?
What about gold pressed latinum!?
The percentage goes up as the Russians remove their money.
The plan has already been put in place
EU: Hey, depositors, you screwed up - you TRUSTED US!
Excellent summary, DH.
Good question. Anyone?
>>Let the socialists try that in the USA. Watch the rebellion<<
Like the rebellion in California over a retroactive tax? Like the rebellion when started Social Security, medicare and the Rx entitlement? Like the rebellion when obamacare passed and is starting to squeeze the Middle Class?
Like the one that will happen they take our 401(k)’s?
Like those rebellions?
Gun ownership is not allowed.
Use Bing and search for Theresa Ghilarducci. She wants to turn 401Ks into an ‘annuity’ plan. Lie that worksso well for Social security...
Lead & brass = ammo.
There is NO capitalism without
1. Moral Hazard (If you do not trust your neighbor do not put your money in his bank)
2. The rule of Law - the primacy of Private property
All else is socialism / dictatorship / slavery of one level or another
I do not applaud but solemnly recognize the bleakness of your prediction.
Hard times is a'comin'.
“So, which one is socialist and which one is capitalist? Youre mad at the EU because theyre only going for 40% socialist. You think they should be 100% socialist.”
Not sure I entirely understand your point. To me, putting money in a Bank is not ‘an investment’, good, bad, or otherwise. Most people use banks as a place of ‘safe keeping’, as opposed to having it stuffed in your mattress. Obviously there was a time when people put their savings in banks to earn interest, but for most that is not the motivation anymore - given the meager interest rates.
So if a country spends itself into bankruptcy, largely because of providing an unsustainable socialist lifestyle for those who didn’t have the money to pay for it, why is it capitalism to then confiscate the money of those who didn’t need or use government handouts in the first place?
By the way. I have zero money in banks - with the exception of what I put in my checking account.
And, even if you do have something ‘tangible’, like a piece of land, it means little unless you can defend your ownership. The government already uses ‘Eminent Domain’ to take property. They won't stop at that.
But the Welfare class don’t have savings. They would support it.
If you were to deposit $100,000 in a bank, it's not as if the bank is going to take your money and keep a pile of $100,000 in $100, $50 and $20 bills in a vault somewhere. The bank uses the money to conduct its core business function: they lend it to others at a higher rate of interest than you are getting.
I don't know all the facts surrounding the Cyprus banking disaster, but it sounds as if the government-owned bank in Cyprus took the money from depositors and made a lot of loans that went into default and therefore ended up being worthless.
When you put money in the bank, you are loaning your money to the bank. They don't store it for you in the vault - they loan it out to their buddies to finance projects that might or might not be successful. If they get paid back by enough of their buddies, they'll be able to give you your money back. If too much is wasted on gambling junkets to Vegas and drugs, the bank closes, and you have to depend on the government to make you whole - or not.
I’ve attempted an explanation here.
When we used a gold or silver standard, they could confiscate the property and one could redeem the script for gold/silver.
Any physical standard was removed in favor of fiat dollars based on...credit. An example we all recognize, “based on the GOOD faith and CREDIT of the United States.”
What does that mean? Those dollars/euros etc. should represent what? Recently I walked into a car dealership and walked out the same day with a new used car, based on a credit score and my signature. I didn’t even need to produce any proof of income! Why? Good faith and credit.
But what did I really do? I enslaved myself. So if that is a truism, then your question, “ How can the government confiscate 60% of something for which there is only 10% at best?” Is only answerable by one thing...the Cypriot has been sold into slavery to the EU.
When we say that every man, woman, and child owes our own government $xx,xxx.00 we are enslaved. But this didn’t happen by accident. And as upsetting as watching events in Cyprus are we were sold the same bill of credit in 1933.
... Like any other debtor, the federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the federal United States didn’t have any assets, they assigned the private property of their “economic slaves”, the U.S.
citizens as collateral against the unpayable federal debt.
- See more at: http://www.henrymakow.com/us-citizens-property-collatera.html#sthash.r1FNhLL8.dpuf
All we are truly witnessing is the result of government’s claiming what has been loaned through slavery. Is the average citizen to blame or have the masses been tricked & deceived. That “60% of something,” is your life, your work, your productivity and that of your children. It is that promise that somewhere out there the men who produce work...produce it. But no matter how hard you work, anywhere in this world today, you cannot buy your freedom with the useless dollars in your wallet.
The day of Americans or anyone creating their ‘wealth’ is gone. Anything new created is already enslaved to the government. They looted that property from you long before you were ever born or your work and ideas ever even dawned in your mind. It already belonged to someone or something else. And this is true the world over for the Cypriot is not seeing anything new in these actions, he is just realizing how much of a slave he is in the world.
“60% of something” loaned out on a 10:1 scale...how enslaved are they really...how enslaved are we?
It has been done at banks. Uninsured deposits almost always take a loss in payout; depending on how the assets are sold, they may or may not take a loss in other types of bank liquidations.
“Let the socialists try that in the USA. Watch the rebellion.”
They just gotta sort out that irritating little gun problem first.
Excuse me, since the money stolen from successful people went to pay down a debt how can it “save” the Nation? If none of it went towards correcting the conditions which caused the banking crises what is to prevent it from happening again in 6 months or so?
The only thing that was “saved” were the politicians in Cyprus and the bureaucrats in Brussels and elsewhere.
I wonder what's the morning line for the next banking crises in Cyprus?
It already has happened here.
One of the big differences between the United States and Cyprus is that the U.S. government can simply print more money to get out of a financial crisis. But Cyprus cannot print more euros, which are controlled by international institutions.