42 2 mins 9 yrs

Ronnie Biggs must wish he had become a eurocrat rather than a train robber since the scale of plunder is so much greater;

Savers with over 100,000 euros deposited in the Bank of Cyprus could now be hit for losses of up to 60 per cent, according to a central bank official and a senior finance ministry technocrat.  The officials, who spoke on condition of anonymity because they’re not authorized to publicly discuss details of the issue, said deposits over 100,000 euros at the country’s largest lender will lose 37.5 percent of their value after being converted into bank shares.  They said that savers could then lose up to 22.5 per cent more, depending on an assessment by officials who will determine the exact figure aimed at restoring the troubled bank back to health.

So, 60% of your savings TAKEN in order to protect the Euro! Wow.

And if they can get away with it in Cyprus, they can do it anywhere. The precedent has now been set and the EU has established that it can raid YOUR deposits to the staggering scale of 60% in order to secure its own political agenda.  The bit that disturbs me is the relative acquiescence of so many to this institutionalised theft. Those who are prudent, who save wisely, who invest well and who behave legally, are now the main prey of the Euro-elite.


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42 thoughts on “THE GREAT EU BANK HEIST

  1. I read that the ‘financial sector’ of the Cypriot economy was/is 8x the GDP of the island i.e. the IOUs of its banking sector are 8x the GDP. Iceland had an exposure of 10x its GDP. Who could make such criminally insane policy for an economy? Who are these economic advisors who would bribe persuade a government to risk the bankruptcy of their own people. In Iceland, it was a clique of Harvard-trained ‘whizz-kids’, the kind of idiots so adnired by Phantom, who brought that island to its knees until they renounced any responsibility for the gambling debts of private banks.

  2. No deposits were taken by anyone.

    The banks had insufficient funds to go on. The money was not there.

    I’ve heard no alternate solutions here other than

    A) Allan’s drachma printing / free money howler

    B ) Pete’s proposal for no aid at all, only bankruptcy, and the chaos and worse ruin this would bring to the island

  3. “B ) Pete’s proposal for no aid at all, only bankruptcy, and the chaos and worse ruin this would bring to the island”

    Stop making it up.

    There is no “aid” for Cypriot banks, only stolen loot. Bankruptcies are an orderly unwinding of liabilities. Ask Icelandics about the “chaos and ruin” of an economy now in swift recovery.

  4. Phantom makes it up because he just can’t help himself – that’s what those in the finance sector do. Drachmas would be printed in Cyprus to replace the Euro on Cyprus’s departure from the Euro and the EU. Euros were printed to replace the previous drachma.

    If one wishes to see ‘howlers’, just look at the Cypriot economy. Phantom-economics did that!

  5. True.

    Central banks, inflation, fiat currencies, fractional reserve banking, mega-trillion bailouts, systems designed by and for elites: Phantom likes them all.

  6. Pete

    If there is no aid, then why did Cyprus negotiate it?

    The ECB is making a loan that they would prefer not to make.

    The deal has to be made now. A bankruptcy negotiation could take many months. And leave depositors with zero.

    I described your position perfectly.

    The Iceland solution involved massive govt aid for Icelandic depositors only. It is the opposite of a free market deal.

    You can justify the repudiation of the debt, but you cannot justify the unequal treatment here.

  7. Pete

    Your budd Pete has repeatedly called for drachma money printing and full reimbusrement of depositors with that fiatnmoney

    Don’t you understand what you ” ally ” has said?

  8. My ally?

    That’s your problem, Phantom. This isn’t abut discussing ideas and events for you. You come like some go paintballing, so your object is to “win” the thread. Allan and I don’t “buddy up”, we say what we think. You say whatever you think will get one over on someone else.

  9. I hope you do agree with the State stealing most of your savings, you are next .. be happy and pay up ..

    FDIC & Bank of England Create Resolution Authority for Unlimited Cyprus-Style “Bail-Ins” for TBTF Banks!

    The Federal Deposit Insurance Corporation (FDIC) and the Bank of England—together with the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, and the Financial Services Authority— have been working to develop resolution strategies for the failure of globally active, systemically important, financial institutions (SIFIs or G-SIFIs) with significant operations on both sides of the Atlantic.
    The goal is to produce resolution strategies that could be implemented for the failure of one or more of the largest financial institutions with extensive activities in our respective jurisdictions. These resolution strategies should maintain systemically important operations and contain threats to financial stability. They should also assign losses to shareholders and unsecured creditors in the group, thereby avoiding the need for a bailout by taxpayers.

    http://silverdoctors.com/fdic-bank-of-england-create-resolution-authority-for-unlimited-cyprus-style-bail-ins-for-tbtf-banks/

  10. Phantom – I call for replacement of the Euro by a new Cypriot drachma, a national state-owned bank as custodian of the Cypriot currency and the Cypriots can sort things out themselves. That way, Brussels and Zurich will be out of the way.

    What do you think about the Cypriot-shakedown becoming the model for the US, UK, Canada and the rest of Europe? Don’t tell me that you haven’t seen the reports.

  11. Americans having their bank accounts raided by the State .. no wonder the American government ordered 1.6 Billion rounds of ammuntion…. they are going to need them, but I think they already know that.

  12. Btw I like the new terminology for theft by various means. ‘Quantative easing’ for theft through decreasing value and ‘bail-in’ for direct theft of depositors’ money in bank accounts.

    As I wrote weeks ago to the bitter criticism of corporates Frank and Phantom – TAKE YOUR SAVINGS OUT OF THE BANK – just leave enough to deal with monthly out-goings.

    Phantom – do you still disagree with the paragraph above?

  13. Cyprus won’t be leaving the EU any time soon, Allan…the unknown is to great a risk that the country’s leaders are unwilling to take…and the country has been ‘better off’ since joining the EU overall…I think the last place I read about it was in the CIA synopsis (I know not a favorite site but accurate for this type of info).
    The idea for a stronger Euro banking union has been floating around for years with pre-planned resolutions for banks’ failures seen as a necessity because it will supposedly remove some to the risk of banking. The NYTimes has an opinion piece on this: Editorial | Sunday Observer
    Who Can Bring the E.U. To Its Senses? today at http://www.nytimes.com/2013/03/31/opinion/sunday/who-can-bring-the-eu-to-its-senses.html?_r=0
    I’m not necessarily a fan of the Eurozone mind you; I’m just looking at it from a ‘what’s likely to happen’ standpoint.

  14. Cyprus Parliament President Says “No Future” Under Troika, Calls For “Iceland” Solution

    There is no other alternative but to free Cyprus from the bonds of the troika and the memorandum, House of Representatives President Yiannakis Omirou has said.

    […]

    Omirou talked about the troika demands, which according to him will multiply and will turn Cyprus to a colony of the worst possible type and warned “I would like to send a message to the Cyprus people that there is no other way, there is no alternative apart from freeing (the country) from the troika’s and the memorandum’s bonds”.

    He noted that certainly, “this road will demand sacrifices”, adding that “by leaving the troika and the EMS behind us, we will ensure our national independence, our national sovereignty, our moral integrity and our economic independence”

    I’d suggest looking at the Greece vs Iceland unemployment rates at that Zero Hedge piece. In March 2009 they were the same (with Iceland’s rate on a higher trajectory). Today unemployment in Greece is five times higher than in Iceland.

  15. //Today unemployment in Greece is five times higher than in Iceland.//

    They are hardly comparable: Iceland has since WWII always had one of the most prosperous economies in the world, a very disciplined and educated workforce and one of the highest standards of living.

    I’m not sure how Iceland survived the crisis, but it did receive emergency funding from the IMF, and of course nationalised all its banks – a measure that used to be the hallmark of true Communism. (Iceland also has one of the most “socialist” healthcare systems, paid parental leave, long holidays etc etc.)

    What I don’t understand is how it has continued to access financial markets, and receive large loans from the EU, after the nationalised banks paid out only to Icelandic account holders and defaulted on the rest.

    At any rate, it seems to have had several options that aren’t open to Cyprus today.

  16. Noel Cunningham –

    In March 2009 Greek and Icelandic unemployment rates were comparable. Now Greek unemployment is five times higher than Iceland’s. Greece and Iceland took different paths, offering a rare, direct comparison of economic outcomes. The Icelandic way is superior to that imposed on Greece.

  17. But it’s a bit like comparing apples and oranges:
    Iceland’s Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system. The economy depends heavily on the fishing industry, which provides 40% of export earnings, more than 12% of GDP, and employs 7% of the work force.

    The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for four-fifths of GDP. Tourism, financial services, and real estate were the most important sectors but now the banking industry is shot to hell. Erratic growth rates over the past decade reflect the economy’s reliance on tourism, the profitability of which can fluctuate with political instability in the region and economic conditions in Western Europe.

    Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs.

  18. Those who are prudent, who save wisely, who invest well and who behave legally, are now the main prey of the Euro-elite.

    No, the small depositors (under €100,000) have all been saved. The big losers are Russians who deposited their looted funds in the Cyprus banks. Word is that Putin hemself is one of them. Maybe there is a god after all?

  19. Peter –

    In Cyprus the small depositor includes those with more than (ok, those who did have more than) 100,000 euros in the bank. Cyprus has a tiny and ill-formed stock market and little tradition of putting money into property. More than most other Western nations, Cypriots tend to stuff all their assets in the bank. Alot of deposits over 100K are life savings and pension provisions.

  20. Allan and Pete call for entirely ruinous policies that very few if any Cypriots have called for.

    It is noted that the plan that was implemented is more responsible than any bailout that came before it. The bondholders were wiped out. The big depsitors were nearly wiped out. The little guy was saved.

    You can only call it theft if you have read nothing and if you have tried very hard not to understand any of it.

    The Cypriots have more dark days ahead before there are better days, but they would have been worse off if they had followed the advice of our local sloganeers. And it remains noted that the other local critics have proposed no solutions, this deep into the latest crisis.

    Its all talk.

  21. Pete

    Your plan would have done nothing for those larger savers.

    Bankruptcy could have taken months at best. They did not have anything close to that much time.

  22. Pete

    Maybe, but the main losers were the mega-rich Russkis, good riddance to them and their loot. Almost like an Elmore Leonard novel where the thieves get thieved and rough justice is done.

    At least it looks like the Euro is inching towards normal liquidation rules: first wipe out the shareholders, then the bondholders, then the big depositors who should have known better. This way the taxpayers annd small savers escape, and this is what should have happened in Ireland in 2008 when the bubble bank Anglo-Irish was bailed out, an act of criminal iresponsibility by the Irish state.

  23. Peter –

    What are these “normal liquidation rules” of which you speak? Phantom above told me you only get “chaos” from that.

  24. There would have been chaos if there was a bankrupcy that took months

    Cypriots did not have that kind of time.

    I know that you think that chaos and depression are good and cleansing things but we here on earth do not long for depression.

  25. How long would a bankruptcy reorganization have taken for these banks?

    What do you guys think?

  26. Peter –

    He says that liquidating overwhelming debts means “chaos and depression”.

  27. Pete

    How long a period do you contemplate for bankruptcy?

    Quit stamping feet, pay attention

  28. Phantom

    Check the history. There were hundreds of bank failures in the USA in the last century. But the sun still rose each morning.

    My view is as stated at 9.40: The taxpayer should not be bailing out the big guys, ever.

  29. A months long process would mean a totally ruined economy there. There would be no imports and no money

    Which was why they asked for aid from the ECB

  30. A months long process would mean a totally ruined economy there.

    Argentina survived, as did Iceland. Emergency loans yes, bailouts no.

  31. Yes but the big guys were NOT bailed out here

    That is why there is moaning

    This Cyprus crisis involved every bank in the country

    There was no equivalent situation in the US at any time in the past

  32. Neither Iceland nor Argentina did what you guys propose!

    Iceland bailed out their depositors!

    Argentina remains a permanent catastrophe!

  33. re: Cyprus…forget where I read it but the banking situation is just one of Cyprus’ problems…the country itself has a huge am’t of debt coming due in June…in the billions and a sovereign default is not out of the question…I believe I read it would have to look to Russia (or CIS countries) for assistance.

  34. Peter’s fantasising about “mega-rich Russkis” getting robbed is unfulfilled as most of the big players, along with government lackeys, have got their money out – the linked reports are shown on previous threads. Those who get shafted will be middle-class Cypriots and retirees from northern Europe.

    As for Phantom, his solution to this dreadful situation is – more of the same, more loans, more debt. Exactly what a corporate man would want to transfer the ownership of assets to the corporate raider.

  35. If the Russian big boys had all got out in time, Putin would not be angry.

    But they did not all.get out. He is angry, and he will retaliate.

    Some Russian depositors in Laiki were not allies of Putin but some were his friends.

    And he will not want to be seen as one who does not defend Russian interests.

    Stand by.

  36. Allan

    There is no evidence that the Russkis got their loot out – please post a link to support your claim.

  37. There were press reports of it…but who knows if they are correct

    We do not know and can not know at this point

  38. Over the past six months to a year, large sums of Russian cash from individual investors have been flowing into New York apartments and condominiums, according to investment bankers, lawyers and wealth advisers in those areas.

    “Many of our clients had a heads-up on this issue,” a New York real estate lawyer who advises wealthy Russians, Ed Mermelstein, told the New York Times. “Cyprus had started having the conversations about what it was intending, and that’s been going on for half a year.”

    http://www.ibtimes.com/rich-russians-who-got-their-money-out-cyprus-are-taking-it-new-yorks-real-estate-market-1157897

    There are multiple articles that indicate that a number of rich Russians did get their money out. i don’t think that much of it will go back to Russia. It will go to other offshore locations – or into high end real estate in NYC, Miami or London.

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