The Definition Of “Cyprus” Is “Screw You”

Cyprus Said to Reach Tentative Deal to Avert Default

Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.

Boldfaced emphasis added by me.

And so with a wave of a wand — this isn’t even going up for a vote because it’s been framed as a bank resolution — in the Iron Fist of the State, POOF!, your money disappears.

Russian Oligarchs did not get to be Oligarchs playing nice or recognizing rules. There will be vengeance.

Having now created this loophole scheme that “absolves” the politicians, how long before it’s applied in other countries?

Previously here:

Cyprus Looks Like Toast
Cyprus: No Cash Until March 26th
Are You Paying Attention Yet?
The Financial Monkeywrench Of Cyprus
Cyprus Launches Financial Andromeda Strain
The Day The ATMs Stopped Working

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2 Comments

Filed under Collapse, Pottersville

2 responses to “The Definition Of “Cyprus” Is “Screw You”

  1. 100% right.
    But apparently Russians also did the same thing in the late 90s.
    Still I think the contagion from the perceived risk in the EU will force either the deal to change or some kind of economic retribution from the Russians and others.

    • mikecane

      I think the difference is that Russian investment was very high risk — moreso than junk bonds — and no one expected Cyprus to be that. It’s a shame what’s happened to Russia, in fact. Look at all the money that’s poured into China. Russia could have been that.

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