The Russian gangsters took the biggest haircut in Cyprus. They will not be pleased.
I’m bettin’ the Russkies got theirs - all of it.
Yesterday, we first reported on something very disturbing (at least to Cyprus' citizens): despite the closed banks (which will mostly reopen tomorrow, while the two biggest soon to be liquidated banks Laiki and BoC will be shuttered until Thursday) and the capital controls, the local financial system has been leaking cash. Lots and lots of cash.
Alas, we did not have much granularity or details on who or where these illegal transfers were conducted with. Today, courtesy of a follow up by Reuters, we do.
The result, at least for Europe, is quite scary because let's recall that the primary political purpose of destroying the Cyprus financial system was simply to punish and humiliate Russian billionaire oligarchs who held tens of billions in "unsecured" deposits with the island nation's two biggest banks.
As it turns out, these same oligrachs may have used the one week hiatus period of total chaos in the banking system to transfer the bulk of the cash they had deposited with one of the two main Cypriot banks, in the process making the whole punitive point of collapsing the Cyprus financial system entirely moot.
The Russians will eventually hunt down members of this family, and probably ask them to hand over all their loot, or face execution. The problem with the former president is that he was from the Communist Party, and helped to funnel all of these stupid investments over into Greece, which was a total disaster. The bankers never really grasped or asked questions....just accepting this logic.
I don’t see how this ex-president survives in the end.
“The Russian gangsters took the biggest haircut in Cyprus. They will not be pleased.”
I don’t think that is true. The back door was left open in London and few other places for them to withdraw there money.
Many business owners in Cyprus had their operating money taken however. They are going to have to shut down.
No, they didn't. During the entire time of the banking holiday in Cypriot, the branches in London were open. And there were no withdrawal limits.
The money is all gone.