scarey

http://www.bbc.co.uk/news/world-europe-21814325

So to Scoobynetters with money abroad, will you be waiting outside the bank door for when they open?

dpb

Kinell

RA Dunk

Is that even legal, basically that's theft right?

Tidgy

they get the same value in shares of the bank so it says. Does seem wrong though.

Midlife......

iTrader: (2)

Thank God I have no savings...... wonder what they would do with my £15K overdraft?


Shaun

dpb

In a bankrupt bank!

dpb

This must be a nightmare, I dropped off halfway through the rugby

scarey

Shamelessly stolen from another forum, but this blog from the head of Saxobank makes for good reading.

http://www.tradingfloor.com/posts/cy...ger-1728597128

RobsyUK

iTrader: (2)

Moving to dubai.. How they work with no taxes is beyond me but it wounds good.

serega

EU is pushing for it, but Cyprus government voted against it today, so nothing is official yet

f1_fan

iTrader: (9)

Maybe Telboy can comment on this, but isn't doing something like this likely to seriously further undermine any confidence that there is left for anyone to invest in the Eurozone? If they can do it to Cyrpus they can do it anywhere. It is unprecedented!

This seems to me like a really stupid thing to do for the bigger longer term picture, but maybe I just don't get it.

alcazar

iTrader: (2)

See, what I'm not understanding here, is that the banking problem hit in 2008/9?

And yet these are asking for a bailout YEARS later?

So what's the game there?

If they knew about problems, how come they continued to rack them up?

This looks more like fraud to me...."Hey, look guys, free money, let's have some...."

ScoobyWon't

The EU says there will not be a run on the banks in Spain, Italy or Portugal.

I therefore predict a run on the banks in Spain, Italy or Portugal and probably Beppe Grillo calling for a return to the Lira.

Luan Pra bang

This is unbelievable, its a backwards way of the EU getting hold of some Russian money but for Cyprus this is a disaster, the cash in their banks will evaporate overnight. There is billions or euros worth of foreign money in Bank of Cyrpus and all of it will be leaving Tuesday morning. Switzerland is about to have a gold rush. I know the EU is pissed at Cyprus for letting money laundering happen in its banks but they just f*cked the country IMO.
Potentially they just harmed the banks in every struggling EU economy as well.

Camsedin

Am guessing by the comments everyone just wants the EU to give cyprus billions to bail them out for free? lol

Luan Pra bang

Having thought a bit more you are probably right the EU has handled this crap though, either way there will now be a run on the bank. By my understanding if the Cypriot parliament votes no on Monday the bank of Cyprus is bankrupt as they need the bailout cash, they do not get it unless they vote yes and swallow the 10%. I am really not sure though how they will cope with a run on the bank 2 billion euros form the UK and 20 billion euros from Russia will be heading out of the bank of Cyprus Tuesday morning unless the sheer volume of traffic makes the system grind to a halt. Two close friends of mine have all their companies money in Bank of Cyprus as and the first they knew about this was when I phoned them and told them. I don't really have the heart to mention to them that there is a chance something bad will happen and they are verging on bankruptcy come Tuesday morning.
I cannot help but think that there must have been a better way to manage the situation. I wonder if there is a contingency plan in place to deal with the inevitable run on the bank on Tuesday.

c_maguire

If it happens it will certainly create serious uncertainty in all Eurozone tinpot country's financial sectors but is unlikely to have any major impact on the Eurozone as a whole as this type of scenario will likely never be muted (let alone happen) in any of the larger economies as the implications would then be massive. Just the talk has likely trashed the Cypriot economy, so perhaps now the results are an interesting 'test' only.

c_maguire

The Cypriot economy makes up only about 0.2% of the Eurozone.

zip106

I'm surprised it's taken this long for Cyprus to be in such a mess.

Spent many holidays/ work out there - is a massive cash economy, and little taxes being paid.

7 years ago we very nearly bought a plot of land at high cost, to build on in the future.
Thank **** I decided to buy a depreciating car instead

Leslie

If our weak as water self seeking politicians ever succeed in making this country a part of an EU federation, we can look forward to far worse as well as a totalitarian government! Democracy?...whats that then?

Les

alcazar

iTrader: (2)

How will it be different, Les? The € is ready to collapse and the £ is at it's lowest rate AGAINST the € for five years!

So where does that leave the £?

ScoobyWon't

There is also Option 2 - Cyprus votes to leave the Euro/EU.

alcazar

iTrader: (2)

who#s gonna enforce the rules? The EU?

It's a joke.

These and the Spanish are nicking money.

ScoobyWon't

I don't follow your logic there. It's not Cyrpus and Spain nicking money, it was seventeen Eurozone finance ministers who had locked themselves in a room and decided that every Cypriot depositor will see part of their money seized.

http://blogs.telegraph.co.uk/finance...ical-dynamite/

Luan Pra bang

Not really the issue , the banks in Cyprus have cash from all over the world, estimated 20 billion from Russia, 3 billion from the UK. At one time Cyprus banks allegedly had 175 billion in assets, ten times the size of the Cypriot economy.(figure from here no idea how to check its acccuracy http://www.cbc.ca/news/business/stor...-deposits.html) When the banks open the door on Tuesday there will be a run as people try to transfer huge sums of money away from Cyprus, I cannot imagine forcing a bank to liquidize anywhere from 10 to 175 billion in assets to pay depositors, will not have a knock on effect. The mistrust created in EU banks may have an even bigger effect.

ScoobyWon't

That is exactly what I'm expecting, but not just in Cyprus. Why would anyone with deposits in Italy, Spain or Portugal not think "If they can do it to Cyprus, why won't they do it to us?".

I'm wondering if it's something that the EU finance ministers didn't take in to account - and if they didn't see this possibility, they are truly more incompetent than anyone had ever thought them (bar Alcazar), or if they didn't want Cyprus to accept the deal. Something doesn't add up. Do they Eurozone finance ministers want to get rid of Cyprus? Surely if one country leaves, more will follow...

c_maguire

Says who, apart from you?
The Euro is nowhere near collapsing and never has been.

Cyprus apparently has debts equal to its GDP and this 10% skim on savings is a requirement to get a bailout offer from the fund.

jura11

iTrader: (7)

Totalitarian government,not sure if you are live in Totalitarian Government before,but I've live before and comparing those two things is incomparable in many ways

Democracy,you have and many EU states have Democracy(in some cases is some sort of the dictatorship with censorship like is in the Belarus)

About the EU taking on the Cyprus savers,this should work here too on the few multi-million companies,which don't pay for taxes etc.





Jura

dpb

But this is everyman in the street, say 10k savings - you can have 675 worth of shares or


Nothing

serega

I find it funny when people ask questions like - "do they not understand" bla bla bla.
Yes, people who run countries and manage world economies do not understand what everyone else do..