Monday, March 25, 2013

Drudge: 40% confiscation of Cyprus bank accounts

To the young and unititiated, this looks like a lot of money and, yeah, it is.  But it's not just the Russians who have that much money in the bank.  Many retired and eldery who have scrimped and saved all of their lives have this money in the bank.

And the Cyprus government just took 40% of it.

The revised accord spares bank accounts below the insured limit of 100,000 euros. It imposes losses that two EU officials said would be no more than 40 percent on uninsured depositors at Bank of Cyprus Plc, the largest bank, which will take over the viable assets of Cyprus Popular Bank Pcl (CPB), the second biggest.

Cyprus Popular Bank, 84 percent owned by the government, will be wound down. Those who will be largely wiped out include uninsured depositors and bondholders, including senior creditors. Senior bondholders will also contribute to the recapitalization of Bank of Cyprus.
I see a Cyprus uprising.  A graassroots movement to pull out of the EU.  Elected officials will either lose their jobs.  Or lose their heads.

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