Cyprus deal reached....anyone know how the Russians will react to THIS?

[dixiegrrrrl]

Reuters reports..
The proposal, which will now be presented to euro zone finance ministers for discussion, will involve setting up a "good bank" and a "bad bank" and will mean that Popular Bank of Cyprus, known as Laiki, will effectively be shut down.

Deposits below 100,000 euros in Laiki will be transferred to Bank of Cyprus.
Deposits above 100,000 euros, which under EU law are not insured, will be frozen and will be used to resolve debt.
It remains unclear how large the writedown on those funds will be.

The EU spokesman said there would be no "levy" imposed on any Cypriot banks, with the package requiring a full "bail-in" of uninsured depositors, which is likely to mean heavy losses for those with large holdings in Laiki and potentially Bank of Cyprus, where many Russians hold bank accounts.
http://www.reuters.com/article/2013/03/24/us-cyprus-parliament-idUSBRE92G03I20130324

[Cirque du So-What]

1. Offhand, I'd say the Russians are gonna be pissed

Also offhand, I'd say that the Russians may retaliate, perhaps by jacking up the price of natural gas for EU nations. Russians have been angling for influence in Cyprus for quite awhile, so I imagine they're not too happy over what they probably interpret as the EU throwing its weight around on 'their' turf.

[elehhhhna]

14. Regardless there will be a huge european bank run tomorrow

duh.

ANYONE can see that as the logical response. Italy, Portugal, shit's gonna get real.

[Warpy]

2. I think we already know

That was a pretty professional bomb at that Cypriot bank, killing no one and causing little collateral damage.

[dixiegrrrrl]

4. "Was that a bomb or just a loud haircut?"

asks Stacy Herbert, on Twitter.....

[dixiegrrrrl]

3. New joke: buy a toaster, get a bank.

Max Keiser came up with that on Twiiter a bit ago.

[House of Roberts]

5. Is the 'Bank of Cyprus'

where the deposits under 100,000 euros are to be transferred, the 'good bank', or the 'bad bank'?

[dixiegrrrrl]

6. Good bank....

the bailout money goes into the bad bank, the one that will be shut down. Laiki bank.

It is confusing because of the way they named the banks.

[House of Roberts]

7. Ah. So if your money goes to the Laiki bank,

don't expect to see it again.

[dixiegrrrrl]

9. Wel,they promise to take "only" 40% of it.

Since only deposits of 100,000 plus Euros will go to the "bad" bank, you would still have 60 k of Euros..
till the next time, I guess.
"little" depositors get to have the stern capital controls at the good bank, just in case they do not trust Cyprus after this...

[malaise]

8. So the plan is for the EU to loot the Russians' money

That is seriously fucked up

[dixiegrrrrl]

10. Gee, what could possibly go wrong?

[malaise]

11. The 1% insist that they want that Russian oil money

by any means necessary - here we go again

[NutmegYankee]

15. Yeah, this could become a real mess.

I just hope the regular citizens don't lose anything.

[malaise]

17. The truth is that I don't care if the 1% end up paying their taxes

Wherever

[NutmegYankee]

19. I could care less about the oil tycoons.

Though I wonder if Russia will take action against anybody.

[alcibiades_mystery]

12. I think the Russians no Laiki

[dixiegrrrrl]

16. LOL!

[Occulus]

20. Very punny

[MannyGoldstein]

13. But Jamie and Lloyd... will they be OK?

Tell us they'll be OK! Dammit!

Sincerely yours,

The White House

[malaise]

18. They are always OK but their depositors will feel it n/t

[MannyGoldstein]

21. Oh, OK. The depositors.

Close call.