Cyprus surprise - Cypriot depositors to take a 'haircut'

manhattan

Sorry, i haven't read the whole thread but do you guys think that these people who have had a % of their savings taken would now do a run on the Banks by removing the rest of their savings causing more problems?

I mean, if it happened to me i would probably be down there asap withdrawing whats left of my savings.

Fella

People were queuing at cashpoints in Cyprus all over the weekend.

cepheus

Markets taken it badly this morning ftse100 grey market at 6360 down at 7-38am, hopefully it will rise by the open!

John_Pierpoint

Then the Euro was first exposed to the world it was sort of aligned with the US dollar, and in our terms it was worth £0.75.
It then proceeded to fall, against what was still a petro currency, to a value of £0.59
Happy days, let's all drive to France for Mother's day, it is cheaper and the food is better (not to mention coming back with a boot full of booze).

So up to now, those ex pats who retired to Cyprus back then and have been getting 3%, have had little to complain about, even after their hair cut. [Those of us stuck in the UK had the value of our money "haircut" by Gordon Brown to save the world]

Let us see what the markets are doing this morning.
3% off all East of the pond stock prices? So we can all share the pain?
Or a jump in value as the funk money, now tenfold greater than needed for physical trade, flees to London & New York?

There could be a lot more hair cutting, once everyone realises how much spare money, that does not know what to do with itself, is swilling about in the casino banking system.

• • 8:04 am
  • by Dow Jones Newswires
  • Add a Comment
  U.K.'s FTSE 100 opens 1.5% lower at 6,391.79
  
  Germany's DAX Trades Down 1.5% After Open
  
  France's CAC 40 index opens 2.1% lower at 3,764.46
• The euro and crude have both fallen sharply as European trading starts, and stock markets are tipped to follow suit.
• However there’s strong appetite for perceived haven assets such as the yen, German bunds and gold.

Investopedia explains 'Bund'

Similar to U.S. Treasuries, bunds are auctioned off in the primary market and traded in the secondary market. They can be stripped, meaning their coupon payments can be separated from their principal repayments and traded individually. Bunds pay interest and principal three times a year.
Read more: http://www.investopedia.com/terms/b/bund.asp#ixzz2NsXI5ZMg

So the market is betting on more drop outs/hair cuts in the South?

ChiefGrasscutter

Mrs_Bones wrote: »

Now certain people in the EU are trying to turn their heads and saying it's nothing to do with us??? There is talk that they are looking for ways of lessening the blow for people with low savings but it's too late, the damage has been done as the precedent of taking money from peoples accounts has been set.

It has occured to me that's its possible that the EU/Germany never specified HOW the money was to be haircut from the accounts and never thought or intended it would include "small savers".

By including the below E100K accounts in the deductions the Cypriots might be playing a clever game of destroying the idea that a 100K Euro wide guarantee exists as a way of getting back revenge at the EU/Germany and deliberately trying to stoke bank depositor panic in the rest of the EU. This might then give them a better negotiating edge at reducing the total haircut amount.

grizzly1911

Bank, large holders of deposits within the euro zone, fell 1.7 percent on concerns over their exposure to any turmoil and knock-on effect within.
"Banks clearly will be hit by this news, which will provide an opportunity for investors looking to build a position," Guy Foster, portfolio strategist at Brewin Dolphin, said.
He said the specifics of Cyprus's situation, in terms of the outsized nature of its deposits and the make-up of some of the larger depositors, is not repeated across the euro zone, so confidence in bank deposits on other peripheral European regions, therefore, ought to hold firm.


http://uk.reuters.com/article/2013/03/18/uk-markets-britain-stocks-idUKBRE8710BE20130318

Get buying.

Barclays:- http://uk.reuters.com/business/quotes/overview?symbol=BARC.L

PaulF81

I said this would happen.

socrates

John_Pierpoint wrote: »

I wonder if the government of Cyprus had the good sense to talk to Iceland about a
plan B.

Unfortunately this whole 'plot' was hatched months ago

The incoming President met with German Leaders - before he was even elected

He has been 'told' what he has to do and how to 'sell' it

Cyprus is not a powerful enough nation to do anything but bend over and that is without Vaseline too

Germany and France will get their own way - and Russian money will wing its way to Germany - job done!

grizzly1911

socrates wrote: »

Germany and France will get their own way - and Russian money will wing its way to Germany - job done!

Just as long as the T72s & T90s don't follow.

wotsthat

Graham_Devon wrote: »

And you gotta feel for these people...

One guy on the news has just got the proceeds of a loan put into his account. This was to pay for his daughters tuition. By Tuesday, he won't have enough money to cover the tuition, but will have to pay the full loan back, including interest on the grab from the government.

Easy for people on here to say "well thats the risk you take", but come on. This is downright cruel.

The hysterics continue.

The media will always find the 'special case'. He's lucky he's got 95% or so of the money for his daughters tuition - how much would he have if his bank went bankrupt and the Cypriot government couldn't afford to guarantee the deposits?

I can see that there's some excitement about the precedent being set but, really, what's the big deal. In the UK there's £1.2tn on deposit probably deflating around 2% each year - that's £24bn - can't see any queues at the cashpoint.