Cyprus surprise - Cypriot depositors to take a 'haircut'

CLAPTON

socrates wrote: »

I think its to show solidarity to the bank workers who are losing their jobs-

I also hear that there is a consortium - if that is the correct word of people getting together to sue

sometimes gestures provide a cathartic effort

but there is no magic money tree in Cyprus anymore

the guilty are the bankrupt banks
the government that allowed the banks to flourish
the people that supported the government as Cyprus seemed to be a money tree

sadly who will they sue? themselves?

ILW

socrates wrote: »

I think its to show solidarity to the bank workers who are losing their jobs-

So they all go down together?

vivatifosi

I've mentioned it on the forum before, but the Philip Atticus blog on Greece and Cyprus is really interesting on the subject of both countries and their respective economic issues. I particularly like his latest post about money laundering and the Germans:

http://www.philip-atticus.com/

Thrugelmir

vivatifosi wrote: »

I've mentioned it on the forum before, but the Philip Atticus blog on Greece and Cyprus is really interesting on the subject of both countries and their respective economic issues. I particularly like his latest post about money laundering and the Germans:

EU is already investigating.

In terms of their customers, Moneyval in 2005 noted that Cyprus also hosts 14,000 offshore firms, 12,000 of which have no physical presence on the island. One purpose of creating shell companies is to conceal the identity of the owner.

http://euobserver.com/justice/119562

TruckerT

Thrugelmir wrote: »

Banking across Europe is in decline. Nothing is going to change that.

But banking and capitalism are two sides of the same coin - how can one survive without the other?

TruckerT

socrates

Thrugelmir wrote: »

EU is already investigating.



http://euobserver.com/justice/119562

http://www.guardian.co.uk/uk/datablog/2012/nov/26/offshore-secrets-companies-sham-directors

socrates

Up to the minute news....

http://www.cyprus-mail.com/capital-controls/new-limits-now-place-re-opening-banks-text-decree-included/20130328

Graham_Devon

Newsnight is pretty decent tonight.

One thing they are looking at is those business which have sent large payments. It's all been held, so ultimately, one business is going to lose. It's either the business sending the payment, as the payment hasn't left the account, and they could see 40% wiped off their account balance, and you'll then see the original full payment go out too.

Or, it will be the receiving business, who for instance gets a payment for 10k, and actually receives 6k.

Which business should lose? The one who setup / sent the payment before the banks shutdown, or the one who was awaiting the payment before the shutdown? It's been lef tto business to argue it out, massively damaging business.

Many business in Cyrpus have over 100k in cash in their accounts.

As they state, once you have clogged the arteries of the banking system and changed it in the process, the consequences can be massively damaging.

Thrugelmir

TruckerT wrote: »

But banking and capitalism are two sides of the same coin - how can one survive without the other?

TruckerT

Banks will survive. Just smaller and more nationally focussed.

fc123

I supply a mini chain in Cyprus and have an order waiting to despatch.
Great couple who used to own a qualityshirt manufacturers that became unprofitable about 12 years ago (due to imports) so they started making garments to retail directly, went into young fashion, opened 9 stores across the island and have a really nice business.
Had a long chat in Feb ('the gas' always comes up in the conversation) and recently.

Dropped a line to them on what I should do (as we usually just contact the shipper) as I won't hold them to the order if things are tough. Haven't heard back...maybe tomo.