The ECB/ Cypriot bailout situation has just gone full retard as the latest proposal reportedly has the ECB seeking to split up Cypriot banks into a good bank/bad bank, with wealthy (ie Russian) depositors in the bad bank being uninsured, and receiving a 40% haircut on deposits over €100,000!
*EURO AREA SAID TO WEIGH CLOSING CYPRUS POPULAR, BANK OF CYPRUS
*EURO AREA SAID TO WEIGH GOOD BANK, BAD BANK FOR CYPRUS BANKS
*UNINSURED DEPOSITS COULD GO TO CYPRUS BAD BANK, FACE 40% LOSS
If Christine Lagarde, Schäuble, and the rest of the IMF/ ECB gang were not aware that a large portion of Cypriot deposits were in fact Russian wealth prior to last Friday’s announcement, they certainly are more than aware of the fact today, meaning that this latest bail-in proposal is nothing short of economic war on Russia by the IMF/ECB.
The Cypriot parliament is reportedly scheduled to vote on the new measure Friday morning, with the bank holiday extended until at least Tuesday.
Expect nothing to be decided until moments before the European open Tuesday, if by then.