Bail-in goes ahead (Cyprus - 90% loss)

Bank of Cyprus, the island's largest bank, said it had converted 37.5% of deposits exceeding €100,000 into "class A" shares, with an additional 22.5% held as a buffer for possible conversion in the future.

Another 30% would be temporarily frozen and held as deposits, the bank said.

A spokesman for the bank said he was not authorised to say what the percentage corresponded to in cash terms. The precise recapitalisation needs of the bank will be concluded at the end of June.

Source: incyprus.com.cy

Despite this being in a Cypriot publication I should just point out that their source was Reuters.

So effectively 90% slash of the cash then. I doubt if the shares will be worth anything as the Cypriot banking system has been mortally wounded by this and is very unlikely to recover ever.

I feel so sorry for those who have lost, for example, deposits for a house or business capital. The effects of this are going to be very very hard on the local people, never mind the Russian oligarchs. The oligarchs, if they did not use the loop hole like the Cypriot President did to remove their money, will be weeping into their vodka.

The Troika, that ridiculous band of pirates, has absolutely no heart and no economic nous. It is patently obvious for ALL their actions that they do not want these countries to succeed and grow, they want to destroy them to protect the economy of the 4th Reich.

reply to post by PuterMan


The whole austerity thing was based on bad spreadsheet-reading.

It's 4 January 2010, the Marriott Hotel in Atlanta. At the annual meeting of the American Economic Association, Professor Carmen Reinhart and the former chief economist of the International Monetary Fund, Ken Rogoff, are presenting a research paper called Growth in a Time of Debt. At a time of economic crisis, their finding resonates - economic growth slows dramatically when the size of a country's debt rises above 90% of Gross Domestic Product, the overall size of the economy. Word about this paper spread. Policymakers wanted to know more. And so did student Thomas Herndon. His professors at the University of Massachusetts Amherst had set his graduate class an assignment - pick an economics paper and see if you can replicate the results. It's a good exercise for aspiring researchers. Thomas chose Growth in a Time of Debt. It was getting a lot of attention, but intuitively, he says, he was dubious about its findings.

- he'd spotted a basic error in the spreadsheet. The Harvard professors had accidentally only included 15 of the 20 countries under analysis in their key calculation (of average GDP growth in countries with high public debt). Australia, Austria, Belgium, Canada and Denmark were missing. Oops. Herndon and his professors found other issues with Growth in a Time of Debt, which had an even bigger impact on the famous result. The first was the fact that for some countries, some data was missing altogether.

"New Zealand's single year, 1951, at -8% growth is held up with the same weight as Britain's nearly 20 years in the high public debt category at 2.5% growth," Michael Ash says.

Source : BBC Report. Student finds flaws in austerity paper


Barroso & co are backing away from austerity now..BBC report

Funny that...

reply to post by Theflyingweldsman


Thanks for that. All I can say is 'gob smacked'

Here we are struggling under measure that could be eased a little if the 'Professors' were actually to check their work. They should be demoted to students, then they might see the errors.

reply to post by PuterMan


Everyone has been held hostage by this Troika of organised criminals,

The Irish more than most...



There seems to be a pattern of elite politicians cherry-picking

"evidence" and "research" to back up their policies (or fulfil their orders?)

Basing their judgements of people and their destruction of society on flawed paperwork.....

......Now where have I heard that before?

(Cough cough)WMDs,Iraq war(cough cough)dossier(cough cough)...

reply to post by Theflyingweldsman


Indeed, and it goes on.....

A Grand Coalition for austerity in Italy

reply to post by PuterMan


I don't feel sorry for them. They deserve it. They voted to be part of the European Union, they voted to gift their sovereignty to Brussels, they are the ones who pimped their country to International Bankers.

I laugh at their surprise and indignation, and yet still, it won't wake them up.

In case you missed this little gem making it's rounds on facebook ...

News blackout on change of depositors status to ‘Lender/creditor’ to ‘Bail-In’ bankrupt banks

SIGNATORIES

European Commission European Central Bank (ECB)
Bank of England.
Board of Governors of the Federal Reserve System Federal Reserve Bank of New York.
Financial Services Authority.
Members of the Cross-border Bank Resolution Group
Swiss Financial Market Supervisory Authority.
Federal Deposit insurance Corporation
Banco Central de la Republica Argentina
National Bank of Belgium.
Commission bancaire, financiere et des assurances, Belgium
Banco Central do Brasil.
Office of the Superintendent of Financial Institutions, Canada
Commission Bancaire,France.
Deutsche Bundesbank.
Bundesanstalt fur Finanzdienstleistungsaufsicht, Germany
Banca d’Italia.
Bank of Japan.
Financial Services Agency, Japan.
Commission de Surveillance du Secteur Financier,Luxembourg
De Nederlandsche Bank.
Banco de Espana.
Sveriges Riksbank.
Swiss National Bank.
Swiss Financial Market Supervisory Authority.
Office of the Comptroller of the Currency.
Office of Thrift Supervision.
Federal Deposit Insurance Corporation.
Financial Stability Board
Offshore Group of Banking supervisors.
Bank of International Settlements.
Financial Stability Institute..
Secretariat, Basel Committee on Banking Supervision.