Monday, March 25, 2013

A new Cyprus money grab deal in the works

I love how they say senior bondholders will contribute to the bank bailout.  Contribute sounds much nicer than confiscate!
The revised accord spares bank accounts below the insured limit of 100,000 euros. It imposes losses that two EU officials said would be no more than 40 percent on uninsured depositors at Bank of Cyprus Plc, the largest bank, which will take over the viable assets of Cyprus Popular Bank Pcl (CPB), the second biggest.
Cyprus Popular Bank, 84 percent owned by the government, will be wound down. Those who will be largely wiped out include uninsured depositors and bondholders, including senior creditors. Senior bondholders will also contribute to the recapitalization of Bank of Cyprus.
Gloss over the 40% confiscation of savings and the fact that everyone who has invested in the government will be wiped out, and call them contributors instead.  Just doing your civic duty eh, citizen?  But don't worry, it can't happen here.  haha. 

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