General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCyprus deal reached....anyone know how the Russians will react to THIS?
Reuters reports..
The proposal, which will now be presented to euro zone finance ministers for discussion, will involve setting up a "good bank" and a "bad bank" and will mean that Popular Bank of Cyprus, known as Laiki, will effectively be shut down.
Deposits below 100,000 euros in Laiki will be transferred to Bank of Cyprus.
Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debt.
It remains unclear how large the writedown on those funds will be.
The EU spokesman said there would be no "levy" imposed on any Cypriot banks, with the package requiring a full "bail-in" of uninsured depositors, which is likely to mean heavy losses for those with large holdings in Laiki and potentially Bank of Cyprus, where many Russians hold bank accounts.
http://www.reuters.com/article/2013/03/24/us-cyprus-parliament-idUSBRE92G03I20130324
Cirque du So-What
(25,988 posts)Also offhand, I'd say that the Russians may retaliate, perhaps by jacking up the price of natural gas for EU nations. Russians have been angling for influence in Cyprus for quite awhile, so I imagine they're not too happy over what they probably interpret as the EU throwing its weight around on 'their' turf.
elehhhhna
(32,076 posts)duh.
ANYONE can see that as the logical response. Italy, Portugal, shit's gonna get real.
Warpy
(111,358 posts)That was a pretty professional bomb at that Cypriot bank, killing no one and causing little collateral damage.
dixiegrrrrl
(60,010 posts)asks Stacy Herbert, on Twitter.....
dixiegrrrrl
(60,010 posts)Max Keiser came up with that on Twiiter a bit ago.
House of Roberts
(5,186 posts)where the deposits under 100,000 euros are to be transferred, the 'good bank', or the 'bad bank'?
dixiegrrrrl
(60,010 posts)the bailout money goes into the bad bank, the one that will be shut down. Laiki bank.
It is confusing because of the way they named the banks.
House of Roberts
(5,186 posts)don't expect to see it again.
dixiegrrrrl
(60,010 posts)Since only deposits of 100,000 plus Euros will go to the "bad" bank, you would still have 60 k of Euros..
till the next time, I guess.
"little" depositors get to have the stern capital controls at the good bank, just in case they do not trust Cyprus after this...
malaise
(269,186 posts)That is seriously fucked up
dixiegrrrrl
(60,010 posts)malaise
(269,186 posts)by any means necessary - here we go again
NutmegYankee
(16,201 posts)I just hope the regular citizens don't lose anything.
malaise
(269,186 posts)Wherever
NutmegYankee
(16,201 posts)Though I wonder if Russia will take action against anybody.
alcibiades_mystery
(36,437 posts)dixiegrrrrl
(60,010 posts)Occulus
(20,599 posts)MannyGoldstein
(34,589 posts)Tell us they'll be OK! Dammit!
Sincerely yours,
The White House
malaise
(269,186 posts)MannyGoldstein
(34,589 posts)Close call.