6.75% for deposits less than 100,000 euro (130,000 dollar). 9.9% for larger deposits.
But the Cypriotic politicians might a bankrupt and an exit from the euro-zone above this bailout.
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There's not one banker in the story. Only Jeroen Dijsselbloem, Olli Rehn and Vassis Shiarly. Non of them are bankers. All three are politicians. And yes, in financial matters, it's allowed to not speak the full thruth for politicians, to limit the damage financial markets can do (like "No, we are not going to devaluate").
The only bank employee in the story, a financial analyst of the Dutch Rabobank is quoted as saying "Uncertainty over the exact form of Cyprus' bailout will continue to hang over markets in the coming weeks". I don't think you can call that a lie.
What did you intend to say?
Keep telling yourself that none of these are "bankers". You probably think the Federal Reserve here in the US isn't a bank either.
Sharon Bowles, chair of the European parliament's economic and monetary affairs committee
Euro zone finance ministers forced Cyprus' savers
give depositors shares in the banks
head of global forex strategy
Cyprus has declared a bank holiday on Monday
exchange of this levy with shares in the banking institutions
European Union's top financial official
euro area's 17 finance ministers
27 EU finance ministers
Cypriot finance minister, Vassos Shiarly
the so-called troika of international lenders — the Commission, the European Central Bank and the International Monetary Fund
The equivalent of the Federal Reserve is the European Central Bank in Frankfurt, Germany. Mario Daghi, the Italian head, can be considered a banker. But he doesn't figure in the story.
Jeroen Dijsselbloem, our socialist minister of Finance, really isn't a banker. Try google translate to read his official resume at http://www.rijksoverheid.nl/regering/bewindspersonen/jeroen-dijsselbloem/cv
They don't control the banks, they control the bailout operation.
And that bailout operation includes the measure that the Cypriotic government lets the depositors pay an extra tax (6.5% of their deposit). No role for the banks except transferring that money to the Cypriotic government under Cypriotic law.
Still no banker in the story.
and fail to understand financial matters. Look back in history. Who issued money? It was the banks. Now we have the govts themselves issue the money. Who do they issue it through? The banks. The only thing that's been done is separate the issuance of money or "bank notes" to be done by govt and it goes directly to the same banks to then lend out. It's all the same thing as before, just now there's a left and right hand at work instead of just one hand doing it all. It's all part of the "banking system". And what are they worried the most about? Depositors? No, the banks themselves.
Anyway, this is the beginning of the end for Europe's economy in short order, soon as all the bank runs happen, then they shut down the banks for "holidays" and limit withdrawals, it will be the death knell for freezing the economies of Europe and causing the collapse.
Here's an interesting article about it.
We like to think we are smarter than those who experienced terrible economic times in the past, but in truth we are just more arrogant in our ignorance of what's about to happen.
institution based in New York notorious for messing in economies around the world.
Bankers like everyone else you've mentioned are wedded to their own self interest and their own prejudices against gentle corrective members and toward vicious austerity imposed on others to their own benefit. Purtanism in the financial markets is just as inhumane as it is in religion.
by instituting price controls there were complaints about the surprise of it. I was never a Nixon fan, but I can't see any other way of handling any major money restructuring. And the Cyprus thing is even more sensitive to leaks or perceived leaks.
I do notice commentators from BBC and Reuters saying that the Cypriot leader mishandled it. Of course the perception will be that he was not clumsy but conniving, to give friends time to get their loot out.
Who knows? I got my 17 kroner out, anyway.
the term "bank run" isn't used in this article James links to, so it can be argued indeed he is deliberately misleading the readers, but there's lot of talk about bank runs going on.
Here, for example, in today's Financial Times, a highly regarded UK newspaper: http://www.ft.com/cms/s/0/b501c302-8cea-11e2-aed2-00144feabdc0.html#axzz2Nu0zb5fd
I believe it will be a call to those who have deposits outside their own countries, especially in the stronger economies like France and Germany, to pull those deposits back into their own countries, or maybe will transfer to US banks. This will be a bank run of a different sort, no long lines seen, just funds flowing quickly out of the satellite European countries to the larger, safer, more economically sound European countries. The result, although it might takes months to become apparent, will be collapse of those countries' economies, which basically means an economic rotteness around the edges of the European Common Market which will also begin to affect the center stronger countries too, but somewhat later.
Of course the bigger concern to me and most on this forum is what happens then in the US in reaction to these events. I suspect some form of "bailout" from US govt toward Europe. Exactly how that bailout would appear, the steps taken, what becomes affected the most economically, is not so apparent, yet.
Big money, smart money, is probably already flowing out of the satellite European countries even today.
has offered to bail them out in exchange for drilling rights in the country for natural gas.
Here's a novel idea..........why not have the country drill for THEMSELVES and use the profits from selling the gas to get themselves out of debt? Maybe the IMF would lend them the money to drill...........if BO and the EPA/Environmentalists don't put the kabash on it.
With an agreement from the Euro Bank and the IMF for a $16B loan, Cypress will be also taking 40% or more from their people's bank accounts that hold more than $130,000 since anything above that amount isn't insured. If Russia has the kind of money in accounts in Cypress that some are speculating are massive amounts, then Russia and Cypress's people are the losers in the deal. All banks in Cypress are going to stay closed 'at least until Thursday'........yeah, right. I can see people burning the places down before then.
Government theft with global approval? Will there now be a run on the banks elsewhere because people will realize governments aren't to be trusted?
What this says to all wealthy people with money in a bank is to "Get It Out Now!"
I can hardly believe they pulled an even stupider stunt than they'd already planned on doing before this. I know they think this will only hurt the "rich" but this is more like eating half the goose with the golden eggs instead. Still, it's not much worse than the value reduction of the dollar during the FDR administration, which turned the recession into the Great Depression.
This will reverberate around the world and the effects may take some time but they will be widespread. They will try and sell the world the concept that it's just in this one country and won't have any impact on others, but we can see it already will impact many in Russia too. A struck match is not by itself a mighty fire, but if fuel is laying all around it, soon there can be a raging inferno, and the fuel today is the financial mess and fiat money all over the world.
out fer ya?? The German banks had decided that they didn't want to bail out the favourite Bank for Russian Mob money which makes up 30% of deposits in Cypriot Banks. Cypriote Banks are still fighting to work out a different 6 Billion Dollar Solution, but I still haven't heard of catastrophic bank runs being made on any other European Banks as James predicted.
Looks like it was "a tale told by an idiot, full of sound and fury, signifying nothing." Shakespeare
Did you take into consideration that the reason there was no run on any banks in Europe yet is for a couple of reason.........
1. Cypress closed all banking the entire week to avoid that situation
2. Cypress may be thrown out of the EU group (which might not be a bad thing for them to go back to their own currency since the EU is a joke that the US was smart enough NOT to join when they were pressured to do so)
3. Russia has indicated they would bail them out in exchange for natural gas rights on the entire island (another joke since they were protecting their own cash in Cypress banks from being confiscated by the Cypress government)