36 replies to this topic

[ogm]

"Stocks were in the red in choppy trading Monday, after the head head of the Eurogroup said the Cyprus rescue represented a new template for resolving euro zone banking problems and that other countries may have to restructure their banks. "

http://www.cnbc.com/id/100587698


Dijsselbloem:

A rescue programme agreed for Cyprus on Monday represents a new template for resolving euro zone banking problems and other countries may have to restructure their banking sectors, the head of the region's finance ministers said.

"What we've done last night is what I call pushing back the risks," Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers, told Reuters and the Financial Times hours after the Cyprus deal was struck.

"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'. If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders," he said.

After 12 hours of talks with the EU and IMF, Cyprus agreed to shut down its second largest bank, with insured deposits - those below 100,000 euros - moved to the Bank of Cyprus, the country's largest lender. Uninsured deposits, those accounts with more than 100,000 euros, face losses of 4.2 billion euros.

Uninsured depositors in the Bank of Cyprus will have their accounts frozen while the bank is restructured and recapitalised. Any capital that is needed to strengthen the bank will be drawn from accounts above 100,000 euros.

The agreement is what is known as a "bail-in", with shareholders and bondholders in banks forced to bear the costs of the restructuring first, followed by uninsured depositors. Under EU rules, deposits up to 100,000 euros are guaranteed.


http://www.zerohedge...europe-tumbling

[ogm]

Anyone with a deposit over 100k Euros in Greek, Italian, or Spanish banks should have their head examined pronto, like they say in France The "Troika" is coming after your money, and fast. You've been warned. Raping depositors is "the new template". It is now structured in the way that no parliament approval needed. Tricky, isn't it ?

Edited by ogm, 25 March 2013 - 11:14 AM.

[ogm]

He has completely undermined all confidence in Europe that Draghi has managed to build.


Eurogroup’s Dijsselbloem Says "Banks Should Save Themselves"
http://www.zerohedge...save-themselves

Edited by ogm, 25 March 2013 - 11:22 AM.

[SemiBizz]

And they are setting up to do just that here IMO... One day it's "Tax the Rich", the next day it's just confiscate "excess" holdings of the rich. As if everyone who has worked hard, scrimped and saved to invest to make a few bucks is a villain. As if everyone who has some amount of wealth acquired it by unscrupulous methods and needs to be punished. Oh No, it ain't gonna be long either. Pandora's box is WIDE OPEN NOW.

[babs]

Another nice feature is this is all done without any votes by the local government. The US has a government that looks out for us, right?

[risk_management]

He has completely undermined all confidence in Europe that Draghi has managed to build.


Eurogroup’s Dijsselbloem Says "Banks Should Save Themselves"
http://www.zerohedge...save-themselves

Dijsselbloem and the gang better have security 24/7. It's widely known Cyprus is the hub for dirty money in that part of the world.

Edited by risk_management, 25 March 2013 - 11:30 AM.

[tria]

In about 30 minutes the President of Cyprus is due to address the Nation. -tria

[dasein]

I think the only reason they went after the big depositors in Cyprus is because they were non- citizen haven seekers esp. non-Eu people, eg Russian - they will never have a vote. what he says is completely sensible to me - that the bond holders and shareholders have to pay first - IIRC they are not paying first - they are only getting a haircut - were this capitalism, they would lose everything first before any depositors are tapped. But again - the depositors there are non-local "qualified investors" and the bank investors are - a lot of them anyway - are EU pension plans and EU funds and banks....so any politically astute person would scalp the big depositors - however, if they really are "mafia" yes, all those EU politicians better watch their back:)

[SemiBizz]

In about 30 minutes the President of Cyprus is due to address the Nation.

-tria

Cyprus Banks to reopen Tuesday...

30 minutes is about how long their cash is going to last tomorrow.

[SemiBizz]

I think the only reason they went after the big depositors in Cyprus is because they were non- citizen haven seekers esp. non-Eu people, eg Russian - they will never have a vote.

what he says is completely sensible to me - that the bond holders and shareholders have to pay first - IIRC they are not paying first - they are only getting a haircut - were this capitalism, they would lose everything first before any depositors are tapped. But again - the depositors there are non-local "qualified investors" and the bank investors are - a lot of them anyway - are EU pension plans and EU funds and banks....so any politically astute person would scalp the big depositors - however, if they really are "mafia" yes, all those EU politicians better watch their back:)

It's the equivalent of a Drone hit, collateral damage being the baker, butchers, hoteliers, all the small business... I thought we were the experts on that.