Russia Today reported: Cyprus Popular Bank's richest clients with uninsured deposits over 100,000 could get only 20% of their money, as the government eyes to wind down its operations, says Finance Minister Michalis Sarris. "Realistically, very little will be returned," Sarris said in a televised interview with state broadcaster CyBC, adding that it could also take years before those depositors see any of their money back. "Certainly, for depositors above 100,000 euros it could be a very significant blow," Sarris concluded.
Well I guess if your business model of tax haven has no future anyway, may as well keep as much as possible
This is the good bank/bad bank strategy. Deposits under $100k move to the good bank, while everything else is up for grabs at the bad bank. Meanwhile, at the good bank, deposits over $100k face the defined hair-cut levels. It is much worse than portrayed in the media.
Tell me why this can't happen in reality please. All creditors/bond holders etc are told you just took a 100% haircut. A straight out default on them while what ever is left over in assets etc are returned to depositors? Lets say there is 100B in deposits in Cyprus and after the bond holders are told to go take a hike, here is 80B in assets and cash left over. Everyone else takes a 20% hair cut and life goes on.
There's going to be blood spilled over this . The Russians want take lying down I see politicans & bankers blood being spilled
With each passing day 10% of all deposits became 20%. 20% became 40%. 40% became 80%. Wouldn't surprise me at all if it just became... [youtube]http://www.youtube.com/watch?v=M5QGkOGZubQ[/youtube]
http://www.zerohedge.com/news/2013-03-29/and-scene-big-cypriot-depositors-face-complete-wipe-out Wow worthless bank shares... I'll stick to declining metals thanx
No matter how crazy and eratic the IMF bankers are... they've still got nothing on Gene Wilder in that movie... very disturbing
Latest is depositors in the Bank of Cyprus with over $100k will get 37.5% of their deposits transferred to Bank of Cyprus stock. The remaining 62.5% of their funds are likely to be lost. In reality even the 37.5% will be lower because the stock price "buy" price will probably be what the Bank of Cyprus closed at a week ago before the stock market was suspended. Bank of Cyprus shares will probably fall 90% in the first 10 minutes of opening whenever that might be, leaving the 37.5% return more like 3.75%.
It's a sickening story about John Demetriou which was already posted above, I thought I would post this bit about how he actually went and spoke to his so called mate at the bank and he assured him everything was alright!! A bit different story to the guy who heard the same rumours and went and transferred all his money to his bank account in the Phillipines on the Thursday, the day before the news was announced. So the moral of the story if you hear rumblings or rumours of something about to occur, better to be safe and act to reduce the risk than be caught out. I bet people were chasitising the guys for sending all is money out to the Phillipines bank as well. "Last week he heard a rumour that the bank was in trouble and went into Aiya Napa to ask his bank manager - a friend - if he should move his life savings. ''There's no problem, nothing to worry about,'' he was told."
I always ask myself when 'chastised' by someone over a decision, "Why does this person care?...have they got any skin in the game?" If the answer is "yes", it probably means they chastising me because its in THEIR best interests not mine, and they're best ignored. If the answer is "no", then their opinion doesn't count and they're best ignored. Take housing...or Land Rover ownership for example; No one wants to feel alone as a sucker... that's why owners will chastise you for not buying one. But they have no real benefit out of your decision. The only person who has skin in the game are the real estate agents and Land Rover dealers... they'll chastise you for not buying their wares....but it's not in your best interests to do so. Having said that, while I do aspire to own both, I own neither a House nor a Land Rover. So you have to ask yourself, what 'skin' has Clawhammer got in the game? And as the answer is none... so my opinion doesn't really count.
Reno.. in my opinion you should buy a 2nd hand Land Rover Discovery... they're ultra reliable! Buy now and save 15% ...or don't buy now, and save 100%
My current favourite writer on gold and economies is Jim Sinclair. The person who famously announced the final run to the top and got out at the top in the 70's bull run. Very thought provoking words on Cyprus and something of the bigger picture in his latest post. www.jsmineset.com Subsequently:
Hmmmm i'l ponder that for a while me thinks lol . To be honest i have no idea what the later models are like .They might well be a decent car .Its funny how the stigma of a couple of dud models can affect later models even after the problems have been fixed .
So far, I've kept/run cars for decades and am interested in longevity of parts supply. After listening to Kyle Bass... I'm not sure its worth 'investing' in a Japanese owned manufacturer. Jaguar/Land Rover are now owned by Indian firm TATA... might be a good hedge. :/
