Latest Cypriot Bail-in Proposal Declares War on Russia: 40% Haircuts on Uninsured Deposits!

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


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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.

Meanwhile….

Comments

  1. Europe is finally trying to remonetize gold? 

  2. 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!
    Interesting and dumb

  3. Well, I have done some dumb things in my life, but I have never been dumb enough to poke a Bear with a stick like the ECB & IMD are doing.

  4. Lets see cuts to 40% on Russian accounts.  Russian sends Navy to Cyprus from naval port from Tartus Syria.  Cause a comotion.  NATO step in to attack Russian navy and Russian base in Syria allowing Rebels to take over. Allowing a government sympathetic to Israel, Israel attacks Iran.  Oil and banking industry from Iran taken over.   Just a guess.  We’ll see what happens.

    • Not a likely scenario, since the Russian Mafia does not control the country’s navy.
       
      Having said that, it would seem to me that stealing money from the Russian Mafia is even stupider than striking a horner’s nest with a baseball bat.

    • IMO “Russian Mafia” is quite different from KGB; Russian “industrialists”, Putin, other wealthy cronies obviously KGB ties; the 40% scenario is non-trivial in terms of geopolitical and macroeconomic implications.

  5. There is no way in heck that the Cyprus Parliment has the brass nads needed to vote for this proposal.  I expect the Cyprus banks to stay closed next week.  No one is that stupid.  

  6. Remember, it is a currency war..  I wonder if more countries will follow suite and go mainly after international holdings to support their banks and primarily leave their citizens accounts alone?  The reason this is interesting is the very wealthy always have a lot of wealth in places like Cyprus, Switzerland and the Cayman Islands which are noted tax havens.  Will countries start seizing international assets like this?
     
    This will be interesting to watch as it develops. 

  7. Let’s see.

    The US tries to pressure Iran using the SWIFT clearing system, which ends up creating immediate incremental demand for gold, and additional long-term interest in moving off the global dollar reserve system.

    Oops.

    The ECB/IMF come up with the brain-dead idea that in order to get around printing more money for this specific bailout, why not just keep a bank open, not torch the bond and equity holders of the bank, and instead go after depositors.  Upon learning how angry the little people get in Cyprus and how fat the Russian deposits are, they decide to stick it to the Russians.  And Russia’s reaction a week from now and a year from now?

    Oops.

    All this crap basically turns a banking insolvency issue in one small European backwater into the latest round of global power currency warfare.

    Idiots.

    It’s really hard to not come to the conclusion that some of this stuff — this idiocy — is being done on purpose.  How could Western policy makers demonstrate such a lack of vision?

    —–

    I still want to know what the heck that chomping animal is.  Deer with ears like that?

    • Sterling is eating popcorn.  One of the original SD figures
      LeGard is playing Russian Roulette with all chambers loaded.

    • I agree, this threater is being done of purpose, this is no blunder like Sinclair is saying, this was planned out for a long time.
      What kind of reaction did they think they were going to get with a bailout tax on desposits?  The answer is simple.
      This a game of chess, every move is thought out well, it may not seem like the right move at the time, but it’s part of a long term game plan.
       

    • Rockets
      that story has me scratching my head going —What the heck.
      One story says the Russians were notified in advance before the IMF deposit action and removed billions or hundreds of billions–Sinclair thinks they had the larger amount.  But if you yank 50 to 100 billion from fragile banks, that would collapses these banks instantly, or so you’d think. Maybe doing this to a bankrupt bank works—all it does is making them bankruptier.
       If the Russians were using Cyprus for their wages and payments clearing house that has me asking why would they offshore these transactions.  That would mean their banking system is not up to the task.  Maybe the payments are those that need to be offshored but it makes about as much sense as a major US bank using the Grand Caymans to handle their—-???
      Oh what the heck, HSBC and B of A were offshoring their drug laundering.  UBS laundering drug money too.    Well, maybe the Russians needed to hide a lot of banking transactions. Maybe so many transactions are dark money that even normal ones need some cover.
       But then there should not be so much going through Cyprus as to bugger up their abilities to handle transfer payments.  It’s putting way to many eggs in one basket
      Then there’s the resignation of Sarris, the finmin who was in Russia to broker a hammer and sycle bailout.  He’s out, no reasonable explanation.  The Russian angle of not having enough funds is just strange if Putin’s trying to annex Cyprus. You’d think he would have had enough fiscal firepower to handle the bailout.  Maybe it’s just disinformation designed to deceive LeGard and keep her off her game.  we’ll see.  Fun movie nonetheless. Call it Dr Shiv-a-go.

    • Well! Like I previously stated…Britney Spears Oops! I did it again.. You never know what lengths these guys will go to? Just to keep the ponzi scheme alive…They rather start a war. The world is always in currency wars as it is. Now we are going back into the cold war. 
      Just admit your currency is a scam and give everyone a debt jubilee. However, because of greed. The leaders rather send the sons and daughters to war of a piece of paper that is worthless. 
      Talk about what in the world is wrong with the human race? Greed!

  8. How would one want to be a Cypriot legislater today? If you do the KGB will have you killed! If you don’t the Rothchilds will have you killed!

  9. one foot blown off one to go.

  10. Cyprus is lucky to have large foreign depositors.
    But what if you live in a low-interest banking country where you’d be a daft sheep to offer large deposits over which 1.2% tax is paid annually? The threshold for the “levy” might be a slightly less round number than a 1 with five zero’s. Or even rounder, every positive deposite could be taxed equally. Negative balances by 100%, it’s all their fault after all?

  11. Test case to see what they can shove down depositors throats, they fought back so now they are looking elsewhere. The derivatives market is what is driving this, as it starts to fail banks will go under.

  12. Bank of Russia unveils Sochi Olympic coins
    The Sochi 2014 Organizing Committee, in conjunction with the Central Bank of the Russian Federation, Goznak and Sberbank of Russia, have unveiled new coins dedicated to the XXII Olympic Winter Games and XI Paralympic Winter Games of 2014 in Sochi
    ITAR-TASS

  13. The Chinese  silver Panda coin .999 silver one troy once  is about $90 ,Russia has alot of Silver maybe new currency?

  14. I’m sure that if the Soviet Union was still here today, then it would have invade Cypriot right now! These banksters can’t just take more than 40 000$ out of your savings inside your bank account like that! Oh wait, it is the sheeple’s fault to believe these corrupt people!

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