dixiegrrrrl
dixiegrrrrl's JournalCypriot Politicians’ Loans Written Off
The Greek newspaper Ethnos and the website 24h.com.cy said that loans to Members of Parliament from the three major political parties and other officials in the public administration from the Bank of Cyprus and Cyprus Popular Bank (Laiki) will be written down or off.
The list includes former and current politicians, wives and relatives whose debt will be excused while the banks chase others to pay their loans. It was not said whether the government or bank officials drew up the list of those who will be given preferential treatment and who won’t have to pay, essentially having received free money they can keep or spend as they wish.
http://greece.greekreporter.com/2013/03/29/cypriot-politicians-loans-written-off/
for some reason, folks on Cyprus are bit ticked off over this....
Decided: 37.5 percent haircut for uninsured depositors at Bank of Cyprus
Laiki customers with savings of more than 100,000 euros, which are not guarenteed, will lose even more money than Bank of Cyprus customers.
Deposits under 100,000 euros at Laiki are to be put in a “good bank” that will be merged with Bank of Cyprus, the island’s largest lender, as part of the overhaul of the financial sector that President Nicos Anastasiades agreed to in order to clinch a deal with the eurozone and the International Monetary Fund for a 10-billion-euro bailout.
Laiki customers with savings of more than 100,000 euros, which are not guaranteed by the Cypriot state,
face even greater losses than uninsured Bank of Cyprus customers who will receive equity as part of the haircut. The Central Bank of Cyprus also said on Friday that capital controls on the island would be extended for another five days.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_29/03/2013_490832
They are doing this despite a letter from the Governor's office that it is illegal.
see here for info on the letter:
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=2585671
Capital controls stifle small business on Cyprus
"...the services sector comprises about 80 percent of the economy. At the heart of it lies banking."
Stories of how small businesses cannot pay suppliers because of banking limits..they have the money, but cannot
send it to suppliers because of bank controls.
http://www.aljazeera.com/indepth/features/2013/03/2013328144346668875.html
Now Canada draws up plans for a Cyprus-like "bail in"
That is what they are calling it now..a bank "bail-in" where any bank failure is to be rescued by depositors,
and not by "taxpayers", they say it as if that is a better thing.
New Zealand is also contemplating a "bail in".
to wit:
"Now Canada intends to put the same system in place. Buried on page 144 and 145 of their latest budget document is the following ditty:
The Government proposes to implement a ―bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.
Systemically important banks will continue to be subject to existing risk management requirements, including enhanced supervision and recovery and resolution plans.
But note that there is no recompense when that "enhanced supervision" fails.
When you deposit funds into a bank the cash the bank now has is an asset. The deposit is a liability."
http://market-ticker.org/akcs-www?post=219243
The Canadian Budget Document referred to can be found here:
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf#page=154
The document is similar in scope and intent to the joint paper by the U.S. Federal Deposit Insurance Corporation and the Bank of England dated Dec. 10, 2012
http://www.fdic.gov/about/srac/2012/gsifi.pdf
Which I posted about yesterday
http://www.democraticunderground.com/10022580104#post10
So, Cyprus has done it, New Zealand and Spain are actively talking about it, Canada has the procedure in its current financial paper, and England and USA jointly have written essentially the same directive.
It Can Happen Here: The Confiscation Scheme Planned For U.S. And U.K. Depositors
Excerpts:
New Zealand has a similar directive....
and
Under the FDIC-BOE plan, our IOUs will be converted into "bank equity." The bank will get the money and we will get stock in the bank.
With any luck we may be able to sell the stock to someone else, but when and at what price?
No exception is indicated for "insured deposits" in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive.
http://seekingalpha.com/article/1306931-it-can-happen-here-the-confiscation-scheme-planned-for-u-s-and-u-k-depositors
New rules announced for Cyprus bank depositors.......gulp.
1. Ban on checks being cashed, although they can be deposited into accounts.2. The transfer of money abroad is not allowed unless it is to pay for imports that carry necessary documentation and for accommodation and tuition costs for Cypriots studying abroad.
They must be full-time residents on the island.
The limit for students abroad is 10,000 per quarter.
Spending on credit cards abroad is limited to 5,000 euros per month per person.
3. Time deposit accounts cannot be redeemed before maturity.
4. Those leaving the country will not be allowed to carry more than 3,000 euros in cash on them per trip.
This also applies to other countries.
5. Any transactions, transfers or payments that have not been completed before the decree is issued are subject to capital controls.
6. The capital controls apply to all accounts, payments and transfers, regardless of currency used.
http://ekathimerini.com/4dcgi/_w_articles_wsite2_1_27/03/2013_490241
Might be a good thing to be aware of what capital controls look like, in case they come to a bank near you.
It just never stops...Regulators Find British Banks Must Raise $38 Billion
Gee..I wonder where they will get the money????
The Bank of England, which takes over the direct supervision of British firms like HSBC and Barclays next week, said the new reserves were needed to protect against losses connected to risky loan portfolios, future regulatory fines and the readjustment of banks’ bloated balance sheets.
Snip....
The reported released on Wednesday said that local banks had overstated their capital reserves by a combined £50 billion, which authorities said would now be adjusted on the firm’s balance sheets. Many of the country’s banks already have enough money to handle the accounting adjustment, the report said on Wednesday.
http://dealbook.nytimes.com/2013/03/27/regulators-find-british-banks-must-raise-38-billion/
"overstated"..a nice word for lying.
so is "account adjustment"
What they really mean is, new rules say banks have to have enough cash to back their gambling costs.
Laiki bank is OPEN to Britain's customers, but closed in Cyprus.
Looks like only Cyprus bank customers got screwed.
UK Laiki Bank customers told 'it is business as usual'
Under a bailout plan agreed in the early hours of the morning, Laiki Bank will be wound up and its €4.2bn in deposits of more than €100,000 will be placed in a "bad bank", meaning they could be wiped out entirely.
Cypriot savers with smaller deposits at Laiki will see their accounts transferred to the Bank of Cyprus;
however, in the UK the two banks will remain separate.
http://www.guardian.co.uk/money/2013/mar/25/uk-laiki-bank-customers-business-as-usual
Four years after Obama promised to close Guantanamo Bay, $195.7 million renovation in works
in renovations and new construction
Pentagon request includes $49 million for new jail for 'special' detainees
White House shut office charged with closing controversial US prison
Crumbling structures make it a 'money pit,' says former military prosecutor
President Barack Obama famously promised in early 2009 to close the US military's detention facility at Guantanamo Bay, Cuba within 12 months. But new Defense Secretary Chuck Hagel is instead considering a proposal from his top commanders to spend $195.7 million renovating it and erecting a new prison building.
The new construction would include $49 to house high-value targets like Khalid Sheikh Mohammed, the mastermind behind the 9/11 terror attacks, whose initial detention and interrogation was handled by the Central Intelligence Agency.
The New York Times reported that it would likely replace Camp 7, the oft-rumored but never acknowledged installation for those 'special' detainees.
http://www.dailymail.co.uk/news/article-2297620/Four-years-Obama-promised-close-Guantanamo-Bay-military-prison-195-million-dollars-renovations-new-construction.html
Cyprus deal reached....anyone know how the Russians will react to THIS?
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
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