Guest rimchair Posted March 25, 2013 Posted March 25, 2013 Tick tock goes the clock my fellow BoyToyers. Where Cyrpus and the Euro wind-up in the next day and beyond is anyones guess. Don't think it can happen here in the USofA????? ""Wealthy Russians stand to lose billions of euros in Cypriot banks under draconian terms being hammered out on Sunday night in Brussels to prevent the Mediterranean tax haven becoming the first country forced out of the single currency. Negotiations got underway amid a hardening of the stance held by the International Monetary Fund and Germany, who insisted that depositors must take the hit for bailing out the eurozone's latest crisis economy. There were signs of panic in Cyprus as a €100 (£85) limit was imposed on ATM withdrawals, with more stringent capital controls to follow if a deal is reached. The European Central Bank has threatened to cut off funds propping up Cypriot banks on Monday, precipitating the island's exit from the euro if agreement was not reached on Sunday night at the emergency meeting between eurozone finance ministers, the president of Cyprus Nicos Anastasiades, and the bailout troika of the IMF, European Commissionand the ECB."" http://www.guardian.co.uk/world/2013/mar/24/cyprus-bank-levy-leave-euro Quote
Guest rimchair Posted March 25, 2013 Posted March 25, 2013 Just after I posted, a deal has been reached. However, a 40% 'Levy' on deposits will not go well, where do I find my 'good' bank? ""Eurozone finance ministers have agreed a deal on a 10bn-euro bailout for Cyprus to prevent its banking system collapsing and keep the country in the eurozone. Reports suggest the deal will include a levy on deposits of more than 100,000 euros in Cyprus's two biggest banks. The levy on deposits in Laiki (Popular) Bank - the country's second-biggest - could be as high as 40%, reports say. The European Central Bank had set a deadline of Monday for a deal. Laiki is also likely to be split into "good" and "bad" banks."" http://www.bbc.co.uk/news/world-europe-21916102 Quote
Guest EXPAT Posted March 25, 2013 Posted March 25, 2013 http://www.huffingtonpost.com/2013/03/24/cyprus-reaches-bailout-deal_n_2945862.html Quote
AdamSmith Posted March 25, 2013 Posted March 25, 2013 Ze euro iss an artificial creature whoss demise vass vritten into its cvreation. Zso? Quote
Guest rimchair Posted March 25, 2013 Posted March 25, 2013 Every person with a dollar in a bank has to now realize that when governments run out of money, they'll just confiscate yours. Quote
Members TampaYankee Posted March 25, 2013 Members Posted March 25, 2013 Banking needs to return to the Post-Great-Depression rules. That is the long and short of it. These new rules that are necessary for the so-called global market are what is making Global Banking a basket case and tempting so many financial houses home and abroad into unwise speculative behavior fed by blatant greed. The above article referred to Cypriot banking as 'Casino Banking'. I think we can see this term applies quite broadly as we look back at Bear-Stearns, Lehman, Citi... etc. and even today with Jamie Dimon steering JP Morgan though multi-billion dollar speculative losses. Break up deposit banking and riskier business baking as in the past. Guarantee the deposits and let the casinos spin their wheels of fortune with stockholders holding that risk. lookin 1 Quote
Guest EXPAT Posted March 25, 2013 Posted March 25, 2013 I agree TY. Cypriat banking is also ripe with underworld deposits from Russia and Eastern Europe. It was the "safe haven" for not so legal activity for some reason. And those big banks haven't been held accountable for that. This "compromise" will penalize some of that but it is a weird way to do that though. Quote
Guest rimchair Posted March 25, 2013 Posted March 25, 2013 A sea of red as global markets fell on news that Cyprus should be considered a 'template' for the rest of the eurozone. Credit: Bloomberg Quote
