Large depositors at Cyprus’ largest bank may be forced to accept losses of up to 60 per cent, far more than initially feared under the European rescue package to save the country from bankruptcy, officials said Saturday.
Deposits of more than 100,000 euros ($128,000) at the Bank of Cyprus would lose 37.5 per cent in money that would be converted into bank shares, according to a finance ministry decree obtained by The Associated Press. In a second raid on these accounts, depositors also could lose up to 22.5 per cent more, depending on what experts determine is needed to prop up the bank’s reserves. Read More…
Wow 60% seems a bit harsh but hey if anyone is keeping over $100,000 in their bank account doesnt know how to manage it well and deserves to get a chunk of it taken away.
Logically, most of that should be invested in the stock market because the itnerest rate in banks is so much lower.
What confuses me is why the protests by students. They aren’t affected at all. I know they are locked from taking all their money out but come one one can’t live with $6,000 per week (current limit)?
I assume they are refering to the big banks in that country. Do they have credit unions? I would assume unions would be separate and not under the same restrictions. Not sure.
Seems fair and when you read the story its not like they lose the money. It is only converted to bank stock shares.
Yes the shares can appreciate or depreciate but when this all settles they should make back their money and some.
The U.S. is still not in the clear despite the worst of it was in 2008. They didn’t fix the problem and so we are still in a ticking time bomb.
First Cyprus. Now which other European country is next?