Über-Rich Dodge Cyprus Bloodletting

Mega-Rich Withdrew Money From Cyprus Before Looting 

“A company owned by in-laws of Cypriot President Nicos Anastasiades withdrew dozens of millions from Laiki Bank on March 12 and 13, according to an article published in Cypriot newspaper Haravgi,” reports EnetEnglish.

While ordinary Cypriots queued at ATM machines to withdraw a few hundred euros as credit card transactions stopped, other depositors used an array of techniques to access their money.”
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Branches and subsidiaries of Cypriot banks in London and Russia remained open while banks in Cyprus were closed, allowing Russian oligarchs and other wealthy depositors to move their money.
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As Business Insider reports, the fact that the mega-rich – the supposed targets of Cyprus “haircut” – have already removed most of their money from the system means that, “upper middle class/entrepreneur types will feel most of the pain if the Cyprus tax is enacted.”

In other words, the very engine of the Cypriot economy, the businesses and the employers, will be the victims of the EU/IMF plundering. Middle class families are also amongst the worst affected. The Telegraph recently reported on a family who sold their villa in Cyprus for 200,000 euros right before the “haircut” was announced only to see the desperately needed cash disappear.

The ultra-rich and the politically connected always have an advantage when the news turns bad.  The ultra-rich are finely tuned to the comings and goings of the economy,  since that is their main source of support.  The politically connected have some of that, and some of the advantages of insider trading, which as you may know in the United States, is simply not illegal for Congressmen and Senators.

If this "solution" becomes widespread among the PIIGS in Euroland, it will be decades before the banks are trusted again.

Cyprus Scalping to Become Beheading?

Big depositors in Cyprus to lose far more than feared

Under conditions expected to be announced on Saturday, depositors in Bank of Cyprus will get shares in the bank worth 37.5 percent of their deposits over 100,000 euros, the source told Reuters, while the rest of their deposits may never be paid back.

The toughening of the terms will send a clear signal that the bailout means the end of Cyprus as a hub for offshore finance and could accelerate economic decline on the island and bring steeper job losses.

Officials had previously spoken of a loss to big depositors of 30 to 40 percent.

Cypriot President Nicos Anastasiades on Friday defended the 10-billion euro ($13 billion) bailout deal agreed with the EU five days ago, saying it had contained the risk of national bankruptcy.

Why would anyone leave money in any bank in the European Union after this?

As Ace points out, this is like the pilot of a crashing plane offering the passengers a part ownership.

Charles Krauthammer suggests that Apple could buy the whole island with cash on hand, and still have some to spare:

“What’s amazing here I think is how small Cyprus is and how relatively small the problem is,” Mr. Krauthammer told Shannon Bream, was filling in for host Brett Baier.

“I mean, this is one country that Apple could purchase, and have a lot left,” he continued. “It could own the island and call it, you know, iCyprus or something, and have all this cash left over.”

Maybe they should save it for iFornia.

The (Slight) Problem with the Cypriot Banking System

From Theo's.

USA - The Slow Motion Cyprus

Think it can’t happen here? It already has 

Much was made of the tiny European Union member Cyprus last week as regulators attempt to get their pound of flesh from the savings accounts of its banks, with a 10 percent tax on larger accounts.

And yet, the European Central Bank taxing citizens to pay up front for a $7.4 billion bailout of the banks still pales in comparison with the fleecing of the US depositor.

The Fed has orchestrated a massive transfer of wealth in America from the middle class and the poor to the wealthy. You could call it “Operation Reverse Robin Hood.”

Naysavers will object, “That’s outrageous!” I say, “Do the math.”

Here it is (in dollars to simplify): If a Cypriot put $1,000 in an island bank four years ago and left it there, today the saver would have a balance of $1,250. Take 10 percent off, and the saver is still up $125.

If a US middle-class family put $1,000 in JPMorgan or Citibank four years ago, the balance today would be $1,010 — less bank fees, which means it’s probably closer to a $950 balance. That’s $9.3 trillion in US deposits getting nothing in return except the warm, fuzzy feeling of bolstering the banks’ balance sheets.

 It just happened more slowly. Boiling the frog: