Cyprus - love it

[whitedesire]

The Dutch Finance Minister (I think it was him) said that this could be a template for the bail outs i.e. the bailout for Cyprus specifically "raiding one's bank balance".

Brilliant isn't it, if your country goes down the swanny i.e. bankrupt, they will come raiding your bank balance with a much as 30%, and whilst a lot of bank accounts are protected in the UK for around £85k, some other European countries will feel the pinch in the unlikely event that it happens to them.

I have a feeling in this case the Russians will take their money and run.

[Alex]

Firstly, the two banks where these "cuts" will happen are heavily indebted and would simply go under without getting help. Instead, one of them will be forced to close in an orderly way and the other one will be restructured. I think it makes perfect sense that there's no "all free for all" bailout this time -- those very people investing money in a failed bank really SHOULD lose that money, except for the amount that is protected (€ 100,000 in this case). Why should tax payers, and even more so tax payers in other countries, pay big amounts to protect higher investments in such failed banks? I think they shouldn't. If you have millions to invest, spread them wisely or be prepared to pay the price if your bank fails.

Secondly, the banks in question are currently closed and there will be restrictions in place once they'll reopen. I'd be surprised if the Russians in question would be able to withdraw their money before being subjected to the cut. If what you mean is that they'll take and run with whatever is left afterwards, and that consequently, Cyprus will be doomed as an "offshore banking paradise", I'd bet you're right.

[Jun]

If you have money in ANY financially stressed Eurozone country, I would start moving it right now. Especially PIGS.

[Alex]

So, here are the rules that make it somewhat difficult to take your money and run (at this point):

http://www.centralbank.gov.cy/media/pdf ... asures.pdf