Cyprus surprise - Cypriot depositors to take a 'haircut'

Thrugelmir

chewmylegoff wrote: »

Yes...why should the British government protect assets of people which are held overseas? If you choose to live in cyprus and stick your money in a cypriot bank you can hardly expect the British government to protect you when it all goes wrong - if I put a load of cash in a Cypriot bank I wouldn't expect the British government to bail me out when the bank went bust. It is clear that the FSCS does not apply to overseas banks (except uk branches thereof).

Anyone with any sense would have moved their savings out of Cyprus long ago (or at least the bulk of them anyway). Unless they were dodgy russian money launderers with nowhere else to put it of course.

I was making reference to the fact that its not only the "Russians" that are impacted. As was the suggestion.

Why not recapitalise the UK banks in a similar fashion? Solve our financial problems overnight. :cool:

Generali

Thrugelmir wrote: »

So the retired Brits can just take it on the chin?

10% of life savings wiped away........

After Iceland you'd imagine people would be a little wary of small island banks paying high interest on savings.

Income tax rates are a lot lower in Cyprus than the UK so they'll gain that way too.

Moral hazard is making a late come back.

Thrugelmir

Generali wrote: »

After Iceland you'd imagine people would be a little wary of small island banks paying high interest on savings.

Income tax rates are a lot lower in Cyprus than the UK so they'll gain that way too.

Moral hazard is making a late come back.

Many retired Brits live there.

Far more than in Iceland.

Conrad

Thrugelmir wrote: »

So the retired Brits can just take it on the chin?

10% of life savings wiped away........

Better a more stable economy than retaining the 10% extra in the Bank and the resultant total collapse that would ensue wiping out far more than that 10% sum.

They all benefit in the round.

Germans cannot just bail out some folk on an island, willy nilly.

Thrugelmir

Conrad wrote: »

Better a more stable economy than retaining the 10% extra in the Bank and the resultant total collapse that would ensue wiping out far more than that 10% sum.

They all benefit in the round.

Germans cannot just bail out some folk on an island, willy nilly.

This action stabilises the banks. Doesn't address the budgetry issues of balancing the books.

grizzly1911

Russia aren't happy.

Interesting take on the fact that if shares are issued then the banks could become Russian.

http://www.bbc.co.uk/news/world-europe-21829696

globalds

Thrugelmir wrote: »

I was making reference to the fact that its not only the "Russians" that are impacted. As was the suggestion.

Why not recapitalise the UK banks in a similar fashion? Solve our financial problems overnight. :cool:

Perhaps we could recapitalise any industry that has a problem with cash flow ..
Our motor industry may well now be the best in the world if we had just banged a 10% tax upon the nation when it started getting sticky at Rover.

Generali

Thrugelmir wrote: »

Many retired Brits live there.

Far more than in Iceland.

It's probably the weather or the lack of volcanos.

cepheus

Generali wrote: »

It's probably the weather or the lack of volcanos.

It seems UK pats have had the option of paying as little as 5% tax on their pension, does anyone know what the tax rate was for savings income from Cyprus banks, and if they would have had access to free NHS care?

http://www.shelteroffshore.com/index.php/offshore/more/expatriate-tax-in-cyprus

ChiefGrasscutter

grizzly1911 wrote: »

Russia aren't happy.

Interesting take on the fact that if shares are issued then the banks could become Russian.

http://www.bbc.co.uk/news/world-europe-21829696

I wonder if that is why they are not very enthusiastic about giving too higher a % haircut to the >E100K accounts (assuming these are mostly soviet deposits) - as they would then have to give then more equity in the bank - which if combined might well indeed give the Russians a controlling interest.