Facing Bailout Tax, Cypriots Try to Get Cash Out of Banks

[Freewill]

Of course 47 percent of Americans won't care if this happens here but there is a large nest egg of 401K money just waiting for the government to take. And there is nothing any of us will be able to do about it.

http://www.nytimes.com/2013/03/17/b...riots-try-to-get-cash-out-of-banks.html?_r=1&

ATHENS — In a move that could set off new fears of contagion across the euro zone, anxious depositors drained cash from automated teller machines in Cyprus on Saturday, hours after European officials in Brussels required that part of a new 10 billion euro bailout be paid for directly from the bank accounts of ordinary savers.

 

[Mad Scientist]

You see? Bankers control everything and that includes Political Parties.

Why do Americans argue Left/Right all day? Because they're stupid.

They know all about their favorite sports teams though!

I was listening to this guy at work talk about the Baltimore Ravens like it was his team! "We just signed Flacco to long term deal!" "We need to draft players on Defense".

I wanted to ask him: "Do the Ravens send you a check?"

 

[waltky]

Seizing part of people's bank deposits a no-go in Cyprus...

Cypriot lawmakers reject deposits seizure bill
Mar 19,`13 -- Cypriot lawmakers on Tuesday rejected a critical draft bill that would have seized part of people's bank deposits in order to qualify for a vital international bailout, with not a single vote in favor.

The rejection leaves Cyprus's bailout in question. Without external funds, the country's banks face collapse and the government could go bankrupt. Nicosia will now have to come up with an alternative plan to raise the money: the government could try to offer a compromise bill that would be more palatable to lawmakers. The bill, which had been amended Tuesday morning to shield small deposit holders from the deposit tax, was rejected with 36 votes against and 19 abstentions. One deputy was absent. "No to new colonial bonds, no to subjugation, no to national dishonor and raw blackmail," said house speaker Yiannakis Omirou during the debate before the vote. After the vote failed, he said political leaders will have a meeting with the president on Wednesday to discuss the next steps.

Nicholas Papadopoulos, the chairman of the parliamentary finance committee, said banks would remain closed "for as long as we need to conclude an agreement" but stressed this would be "in the next few days." Banks had been ordered to remain shut until Thursday while the bill was debated and amended, to prevent a bank run. Papadopoulos said Cyprus wanted wants a renegotiation of its bailout deal. But the idea of seizing savings was something Cyprus rejected. "It has not been (implemented) in any other country in Europe and we don't wish to be the experiment of Europe."

Hundreds of protesters outside Parliament cheered in jubilation and sang the national anthem when they heard the bill had not passed. Under the original deal reached in Brussels late Friday to qualify for the 10 billion euro bailout from other eurozone countries and the International Monetary Fund, Cyprus had to raise 5.8 billion in additional funds by taxing all bank accounts. Those under 100,000 euros would pay 6.75 percent, and those above that amount would be taxed at 9.9 percent on their deposits. Facing fury at home and from Russians who make up an estimated third of the total amount in Cypriot banks, the government amended the bill Tuesday to exempt small depositors with up to 20,000 in the bank.

But the change was not enough for lawmakers. The country's central bank governor, Panicos Demetriades, had recommended that no accounts be taxed below 100,000 euros - the amount that are supposed to be insured by the state if a bank collapses. "The credibility of, and trust in the banking sector depends on this," said Demetriades. Although Cyprus is the smallest eurozone country to be bailed out, the details of the plan had sent shockwaves through the single currency area as it was the first time savers' banks accounts have been directly targeted. Other bailed out countries such as Greece, Ireland and Portugal have raised funds by imposing new taxes.

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