Bailout tax shock for Cyprus savers

reply to post by MidnightTide


Nice rumours.

I highly doubt the EU would approve that.

Here's the catch, this plan has to be approved by the euro-group because it can't materialise if the EU cuts ELA funding to Cypriot banks.

Can someone explain this?
Cause, just thinking out loud here ... if Cyprus gets kicked out of the EU then what authority do they have over any decisions made by them?

Whose chess move is it next?

In related news:

French Minister Steps Down in Swiss Bank Investigation
By SCOTT SAYARE
Published: March 19, 2013

PARIS — Just hours after an announcement that he would be investigated on charges of tax fraud and money laundering, Budget Minister Jérôme Cahuzac resigned from the French government on Tuesday evening, though he insisted he had done nothing wrong.

In control of a crucial portfolio at a time of heightened budgetary discipline and rising taxes in France, as well as the European debt crisis and stagnant growth, Mr. Cahuzac was a highly visible public figure.
www.nytimes.com...

reply to post by Rob7774

Originally posted by Rob7774
reply to post by Talliostro

 

[...] The problem is with politicians from all the nations of Europe who have latched onto the appealing idea of supra national control. It is they who we must direct our attention to.

QFT!

You've just hit the nail on its ugly head.

reply to post by Netties Hermit


Cyprus will not be kicked out of the EU. However, it may well be kicked out of the Eurozone. If that happens, Brussels will not get a say (like with UK economic policy).

Originally posted by UnderGetty

Originally posted by angelchemuel
Apparently the banks are staying shut till Thursday now......how are people there going to eat let alone anything else!!
Rainbows
Jane

Notice they didn't say which Thursday...

And it doesn't look like it'll be this Thursday:
worldnews.nbcnews.com...

FURY erupted yesterday as it emerged that rich Russians withdrew £2billion BEFORE a tax raid on bank savings in Cyprus was announced.

Read more: www.thesun.co.uk...

There are also roumours that the various churches took their money out in February!
Rainbows
Jane

Ah booger.....I think we all felt there was something else behind all this....well it looks like I've found what slipped under the radar! This wasn't supposed to happen until mid 2014!!!!!!!! Rushed this through in light of Cyprus!
By John O'Donnell and Claire Davenport

"BRUSSELS (Reuters) - EU lawmakers agreed on Tuesday to allow the ECB to police euro zone banks, but a levy imposed on Cypriot savers shows they will struggle to unify Europe's response to bank problems.

The deal between the European Parliament and member states finalises an accord agreed late last year to give the European Central Bank powers to supervise euro zone banks from mid-2014, a first step to a banking union across the 17-member bloc.

That agreement had initially been applauded as a step towards integration, but a surprise levy on Cypriot bank deposits has shaken hopes that Europe will unite in tackling bank problems rather than let countries struggle alone.

"This is a fundamental step towards a real banking union which must restore confidence in the euro zone's banks and ensure the solidity of the banking sector," said Michel Barnier, the European commissioner in charge of financial regulation.

Irish Finance Minister Michael Noonan, who played a central role in negotiations because Ireland holds the rotating EU presidency, welcomed the deal.

"The single supervisor is the core element of banking union and a vital step in breaking the vicious link between the banks and the sovereigns," he said in a statement.

The deal envisages that banks with assets of 30 billion euros, or larger than one-fifth of their country's economic output, are supervised by the ECB rather than national supervisors.

The next pillar of a banking union should be the creation of a central system and fund to close troubled banks, rather than leaving it to individual countries such as Cyprus or Ireland to have to manage alone."


More here....
en-maktoob.news.yahoo.com/eu-lawmakers-a...536244--finance.html

That's it...game over....EVERYONES bank accounts are now in jeopardy regardless if they are in the euro!...please somebody tell me I'm wrong!

Rainbows
Jane

"The European Union gave Cyprus till Monday to raise the billions of euros it
needs to clinch an international bailout or face the collapse of its financial system
and likely exit from the euro currency zone"

In stark twin warnings on Thursday, the European Central Bank said it would cut off liquidity to Cypriot banks and a senior EU official made clear to Reuters that the bloc was ready to see the bankrupt island banished from the euro in the belief it could then contain damage to the wider European economy......

Cyprus's central bank governor said he expected to clinch a financial support package by Monday. He did not say how.www.reuters.com...

just saw a thread round here that said Burnanke said the same "haircut" could happen in the US
( MF Global and all the other TARPs n' bailouts must have happened on his days off)

Riots have started in Cyprus:

reply to post by Danbones


Bernanke has access to the printing press. He's doing the same thing here already only instead of an outright theft like in Cypress he's doing it through QE. The digits in your account don't change, but inflation eats away at your purchasing power.

Find a grocery receipt from 1year, or even better 2 or 3 years ago. Compare the cost of a gallon of gas, gallon of milk, pound of ground beef, or loaf of bread. The .gov is only able to get away with the inflation numbers it publishes because it exempts food and energy.

I don't think they'll go after "demand deposit" accounts in the US first though. IRAs and 401ks, that's another story though.

RT @zerohedge: *EU COMMISSION SAYS NO CYPRUS PARLIAMENT VOTE NEEDED: SCHAEUBLE

But..

RT @zerohedge: SCHAEUBLE SAYS GERMAN PARLIAMENT MAY VOTE ON CYPRUS AGREEMENT. It's called hand over of sovereignty


So they are not even going to allow the Cyprus government to vote on this.......

reply to post by Danbones


Free haircuts for all!
I miss the days of free skittles, wow it could happen just that fast!



Shocker update!

A deal has been signed, the levy stands on accounts over 100k,
and here is the real shock, up to 40% on the "bad 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
www.bbc.co.uk...

This should be the last call...especially considering Bernankes dodgy words over the last
few days. This action did not need the vote of parliment.

One key element of the deposit tax, demanded by the IMF, is that it not require a parliamentary vote [/ex[

Coming to a bank near you?

edit on 24-3-2013 by burntheships because: (no reason given)

They are going to sacrifice a few banks, and rob the rest.

Isn't this the way it always is, Bear Stearns, Lehman,
MFGlobal...it is a pattern now.

A small bomb has also been planted at a branch in Cyprus

Violent incidents like the above could be anticipated, particularly from depositors of the Popular Bank of Cyprus or Laiki after the country's officials, the European Union (EU) and the International Monetary Fund (IMF) tentatively agreed to stave the bankruptcy by shuttering Laiki, considered a bad bank.

Caught in the middle by the proposal - to be presented to eurozone finance ministers for discussion - are the bank's depositors with savings of more than €100,000. EU laws said such amounts are not insured and will be frozen to be used to cover the country's debt.

au.ibtimes.com...

There's word on twitter that the Russians are going to freeze assets of German companies in Russia in retaliation for the Cyprus haircut.

I don't think the Russians are happy with the deal thats been struck.

But the Germans will be even more unhappy if they end up footing the whole bill after all.


eta additional source

Cyprus Finance Minister: Uninsured Laiki Depositors Could Face 80% Haircut

Read more: www.foxbusiness.com...


So when are they just going to say they are taking everything. Will say it again, Spain / Italy - get your money out now!!