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BlueStreak

(8,377 posts) Sun Mar 24, 2013, 07:45 PM Mar 2013

Cyprus in last-ditch bid to agree bailout (40% haircut) [View all]

Source: Guardian

Ian Traynor has more details of the deal that appears to be on the table in Brussels tonight for euro finance ministers to consider

(tweet)

#cyprus 'herman van rompuy has brokered an agreement between cyprus and the troika' - EU source

Read more: http://www.guardian.co.uk/business/2013/mar/24/eurozone-crisis-cyprus-bailout-eurogroup-meeting

Reporting that any bank accounts greater than 100,000 Euros will get a 40% haircut.

What is to stop this from being a precedent that our USA banksters will now use against us?

83 replies

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Cyprus in last-ditch bid to agree bailout (40% haircut) [View all] BlueStreak Mar 2013 OP

In answer to your last question...maybe FDIC? nt Poll_Blind Mar 2013 #1

fdic only works up to a certain amount dsc Mar 2013 #2

I checked before I posted. From the page: Poll_Blind Mar 2013 #6

The EU is just making us the rules as they go. And that is EXACTLY what happened here BlueStreak Mar 2013 #8

FDIC works for BANK losses..not gov't "haircuts" dixiegrrrrl Mar 2013 #11

Good point. This is wrapped up as a one time tax BlueStreak Mar 2013 #14

No, that is exactly what the FDIC insurance works for. OrwellwasRight Mar 2013 #16

so who's correct orwellwasRight or dixiegrrrrl leftyohiolib Mar 2013 #25

dixiegrrrrl is right. dkf Mar 2013 #51

Wrong. OrwellwasRight Mar 2013 #54

FDIC isn't for wrongdoing...it's just insurance for whatever reason the funds may not be there. dkf Mar 2013 #59

I am not confusing FDIC with anything. OrwellwasRight Mar 2013 #60

See post #54. nt. OrwellwasRight Mar 2013 #55

And if FDIC didn't come through for any reason, you could do what? snot Mar 2013 #36

The FDIC offers depositors a Bill of Rights. OrwellwasRight Mar 2013 #56

This did not answer my question. snot Mar 2013 #71

I think fomenting panic about an FDIC failure is irresponsible and baseless. OrwellwasRight Mar 2013 #81

God, I hope you're right.... cliffordu Mar 2013 #3

Two things BlueStreak Mar 2013 #4

yeah, raking in the 0.000000000000001% interest lol nt msongs Mar 2013 #5

21 BILLION in profits last year BlueStreak Mar 2013 #7

Yes. The low interest rates accomplish for our banks what the haircut JDPriestly Mar 2013 #45

Savers are not only paying for bad loans, but for bad bets (supposedly called investments) amandabeech Mar 2013 #72

Right. And then they talk about the chained CPI which is simply JDPriestly Mar 2013 #79

Plenty of "regular" people know how to get around that jmowreader Mar 2013 #50

And please recall that in the heat of the 2008 meltdown there was serious discussion BlueStreak Mar 2013 #52

FDIC has assets of $25 billion to cover $9 trillion of deposits. Psephos Mar 2013 #43

It's worse than that. OnyxCollie Mar 2013 #61

Having $1.04 trillion in deposits OrwellwasRight Mar 2013 #62

Read the article. OnyxCollie Mar 2013 #64

I did read the article. OrwellwasRight Mar 2013 #67

There is some cushion in that the FDIC may obtain a loan from the Treasury. amandabeech Mar 2013 #73

Depositors should be paid in full. Stockholders and bondholders should take any required haircut, mbperrin Mar 2013 #9

Stock and Bondholders Will Lose Their Entire Investment Anyway AndyTiedye Mar 2013 #12

No they won't. OrwellwasRight Mar 2013 #17

Some might lose. Some might profit terrifically BlueStreak Mar 2013 #31

Any bank that is bailed out won't have losses. OrwellwasRight Mar 2013 #58

They're losing nothing. They're who the bailout is for. mbperrin Mar 2013 #18

Laiki Bank is Being Liquidated, Shareholders and Bondholders Get Nothing AndyTiedye Mar 2013 #40

Stockholders should get wiped out if things go bad. That's the meaning of risk and reward. mbperrin Mar 2013 #41

The Larger Depositors Will End Up Owning Bank of Cyprus AndyTiedye Mar 2013 #44

Not in this case. Ruby the Liberal Mar 2013 #19

every contradicting post is being contradicted leftyohiolib Mar 2013 #26

Not so (nt) Nye Bevan Mar 2013 #39

LOL. Clever. nt. OrwellwasRight Mar 2013 #63

Absolutely agree. That's why this precedent is HORRIBLE BlueStreak Mar 2013 #13

Well, I think some might have different definitions of wealthy. OrwellwasRight Mar 2013 #20

If the EU banksters didn't like tax havens, then they shouldn't have let Cyprus into the EU BlueStreak Mar 2013 #32

Using a tax haven is not necessarily the same thing as money laundering. OrwellwasRight Mar 2013 #57

Are you saying that everybody who had 120,000 euros on account is a tax dodger? BlueStreak Mar 2013 #66

No, I am saying tax dodgers are tax dodgers. OrwellwasRight Mar 2013 #68

It is only a "tax" as a charade. It is stealing indiscriminantly. BlueStreak Mar 2013 #69

I "have still not addressed why I think it is OK" OrwellwasRight Mar 2013 #70

They aren't "taxing tax dodgers" BlueStreak Mar 2013 #74

Then why are you arguing with me? OrwellwasRight Mar 2013 #80

My apologies. I thought you were arguing that this was a good policy. BlueStreak Mar 2013 #83

While the bondholders should suffer before depositors, that may not help much muriel_volestrangler Mar 2013 #15

Euro zone finance ministers have approved the EU-IMF plan to resolve cypriot banks - EU official dipsydoodle Mar 2013 #24

The symbolism would have still had value daleo Mar 2013 #30

The 40% is for just the Bank of Cyprus muriel_volestrangler Mar 2013 #10

THEN the lynchings should begin. This "softer" landing really only benefits those in charge. mbperrin Mar 2013 #21

Lynchings don't make money muriel_volestrangler Mar 2013 #23

Lynchings keep crooks from doing it again. mbperrin Mar 2013 #37

Your posts in this thread have been damn good. n/t Psephos Mar 2013 #42

There isn't enough in the Cypriot equivalent of the FDIC to pay back all deposits muriel_volestrangler Mar 2013 #47

"What is to stop this from being a precedent that our USA banksters will now use against us?" cstanleytech Mar 2013 #22

completely different scenario bossy22 Mar 2013 #27

And I am willing to bet the republicans are probably trying to outsource that to or cstanleytech Mar 2013 #28

not outsource it, but severely self restrict it bossy22 Mar 2013 #33

Now let me understand this BlueStreak Mar 2013 #34

it has nothing to do with transparency of our system bossy22 Mar 2013 #35

No, but this is a TAX, and Congress can do that BlueStreak Mar 2013 #38

Live webcast of Eurogroup press conf. Bosonic Mar 2013 #29

terrible result quadrature Mar 2013 #46

At some point, everybody would probaby be better off killing the Euro BlueStreak Mar 2013 #48

I agree with you on the Euro. amandabeech Mar 2013 #75

The concept worked until they realized "too big to fail" dominates BlueStreak Mar 2013 #77

I think that the Euro was helped by the fact that it was born during good times. amandabeech Mar 2013 #78

I agree about good times / bad times, but the fractures were there before 2008 BlueStreak Mar 2013 #82

Some details, and comment muriel_volestrangler Mar 2013 #49

Repercussions: new spike in real estate prices? mainer Mar 2013 #53

Perhaps, but real estate where? amandabeech Mar 2013 #76

Here's what I'm talking about: A "Game changer" is not a good thing BlueStreak Mar 2013 #65