IT'S OFFICIAL: Banks In Europe May Now Seize Deposits To Cover Their Gambling LossesSubmitted by emalvini on Mon, 03/25/2013 - 09:17
IT'S OFFICIAL: Banks In Europe May Now Seize Deposits To Cover Their Gambling Losses
Henry Blodget | Mar. 25, 2013, 4:38 AM
Although deposits under 100,000 euros will be spared, deposits over 100,000 euros will be seized and subjected to an as-yet undetermined haircut--with the confiscated money going to bail out the gambling losses of the aforementioned reckless idiots who run some of Cyprus's banks.
The main reason that Cyprus depositors will lose their cash is because it has become politically difficult (impossible?) for leaders in Germany and other rich European countries to bail out their brethren in the "periphery" without taking many pounds of flesh.
And it is that precedent, in addition to the fate of big depositors in Cyprus, that should spook Europe's big bank depositors and lenders.