Coming To Your Bank Account Soon - THEY Take 10% by 'Law'......

[Peter Lemkin]

The euro zone agreed on Saturday to hand Cyprus a bailout worth 10 billion euros ($13 billion), but demanded depositors in its banks forfeit some money to stave off bankruptcy despite the risk of a wider run on savings.

The eastern Mediterranean island becomes the fifth country after Greece, Ireland, Portugal and Spain to turn to the euro zone for financial help during the region's debt crisis.

In a radical departure from previous aid packages - and one that gave rise to incredulity and anger across the country - euro zone finance ministers forced Cyprus' savers to pay up to 10 percent of their deposits to raise almost 6 billion euros.

Parliament was due to meet on Sunday to vote on the measure, and approval was far from assured.

The decision prompted a run on cashpoints, most of which were depleted by mid afternoon, and co-operative credit societies closed to prevent angry savers withdrawing deposits.

Almost half Cyprus's bank depositors are believed to be non-resident Russians, but most queuing on Saturday at automatic teller machines appeared to be Cypriots.

President Nicos Anastasiades, elected three weeks ago with a pledge to negotiate a swift bailout, said refusal to agree to terms would have led to the collapse of the two largest banks.

"On Tuesday ... We would either choose the catastrophic scenario of disorderly bankruptcy or the scenario of a painful but controlled management of the crisis," Anastasiades said in written statement.

In several statements since his election, he had previously categorically ruled out a deposit haircut.

"My initial reaction is one of shock," said Nicholas Papadopoulos, head of parliament's financial affairs committee. "This decision is much worse than what we expected and contrary to what the government was assuring us, right up until last night," he told Reuters, without saying whether he would back the measure or whether he thought it would pass.

Papadopoulos is vice-chairman of the Democratic Party, a partner in Cyprus's centre-right ruling coalition and whose support in parliament will be crucial to pass any haircut.

Parliament was expected to convene from 1600 local (1400 GMT) on Sunday to discuss the emergency legislation. Without parliamentary approval, a haircut cannot take place.

'THEFT, PURE AND SIMPLE'

The bailout was smaller than initially expected and is mainly needed to recapitalize Cypriot banks that were hit by a sovereign debt restructuring in Greece.

The deposit levy - set at 9.9 percent on bank deposits exceeding 100,000 euros and 6.7 percent on anything below that - will take place on Tuesday after a bank holiday on Monday.

To guard against capital flight, Cyprus took immediate steps to prevent electronic money transfers over the weekend.

At one cashpoint in the capital Nicosia, a pensioner couple said they had visited several automatic teller machines without success. "We are trying to pull as much as we can," one told Reuters, reaching for a wallet containing four debit cards.

"I'm extremely angry. I worked years and years to get it together and now I am losing it on the say-so of the Dutch and the Germans," said British-Cypriot Andy Georgiou, 54, who returned to Cyprus in mid-2012 with his savings.

"They call Sicily the island of the mafia. It's not Sicily, it's Cyprus. This is theft, pure and simple," said a pensioner.

The levy breaks a euro zone taboo by hitting depositors.

It prompted Spain, considered the next most likely state to seek a sovereign rescue though supported recently by a European Central Bank promise to buy government debt if necessary, to deny savers in other countries risked being similarly penalized.

The bailout was specific to Cyprus and its bloated banking sector and "could not be extrapolated to any other country," an economy ministry source in Madrid said.

In Brussels, Dutch Finance Minister Jeroen Dijsselbloem said it would not otherwise have been possible to save Cyprus's financial sector which, compared with national economic output, is more than twice as big as the EU average.

"As it is a contribution to the financial stability of Cyprus, it seems just to ask for a contribution of all deposit holders," Dijsselbloem, who chaired the ministerial meeting, told reporters.

The island's bailout had repeatedly been delayed amid concerns from other EU states that its close business relations with Russia, and a banking system flush with Russian cash, made it a conduit for money-laundering.

In return for emergency loans, Cyprus agreed to increase its corporate tax rate by 2.5 percentage points to 12.5 percent. This should boost revenues, limiting the size of the loan needed from the euro zone and keep down public debt.

RUSSIAN AID

International Monetary Fund Managing Director Christine Lagarde, who attended the Brussels meeting, said she backed the deal and would ask the IMF board in Washington to contribute.

"We believe the proposal is sustainable for the Cyprus economy," she said. "The IMF is considering proposing a contribution to the financing of the package ... The exact amount is not yet specified."

Cyprus, with a gross domestic product of barely 0.2 percent of the bloc's overall output, applied for aid last June. But negotiations became bogged down.

Moscow, with close ties to Nicosia, will also likely extend a 2.5 billion euro loan by five years to 2021 at a lower cost.

"My understanding is that the Russian government is ready to make (such) a contribution," said the EU's top economic official, Olli Rehn.

Cyprus originally estimated it needed 17 billion euros - almost its annual output - to restore its economy to health.

But because a loan of that magnitude would call into question its ability ever to pay it back, policymakers sought more revenue sources in Cyprus itself.

The Greek units of Cypriot banks were excluded from the deposit levy, Greek finance minister Yiannis Stournaras said.

[Magda Hassan]

But Peter, we're all in this together....

[Jan Klimkowski]

But Peter, we're all in this together....

The deep political dimension is that much of the money in Cyprus banks is Russian mafia money.

The Business of War.

As always, ordinary people are "collateral damage".

[Peter Lemkin]

But Peter, we're all in this together....

The deep political dimension is that much of the money in Cyprus banks is Russian mafia money.

The Business of War.

As always, ordinary people are "collateral damage".

Yes, I'm aware many rich Russians bank there [for some reason], but as far as I know, EVERYONE with the exception of Greeks [who are being screwed by other means] who bank there have 10% taken. 10% will never hurt a wealthy person, but could someone with little money. Also, it seems to be illegal to suddenly secretly netotiate an expost facto 'tax' on other's bank accounts. Illegality never stopped the Oligarchy..in fact, it seems to inspire them to bigger and badder things.

[Jan Klimkowski]

But Peter, we're all in this together....

The deep political dimension is that much of the money in Cyprus banks is Russian mafia money.

The Business of War.

As always, ordinary people are "collateral damage".

Yes, I'm aware many rich Russians bank there [for some reason], but as far as I know, EVERYONE with the exception of Greeks [who are being screwed by other means] who bank there have 10% taken. 10% will never hurt a wealthy person, but could someone with little money. Also, it seems to be illegal to suddenly secretly netotiate an expost facto 'tax' on other's bank accounts. Illegality never stopped the Oligarchy..in fact, it seems to inspire them to bigger and badder things.

Peter - with respect, you've spectacularly missed the point of my post.

[Jan Klimkowski]

So, was this a move by the Germans on Russian mob money?

The article below claims the Germans wanted 40% of the largest deposits.

Or is Deutschland grabbing some loot before getting the hell out of the Euro?

Greece has collected only $19 million of $13 billion owed by the country's elite tax debtors a redemption rate of under 0.002% percent.

March 18, 2013 · 4:02 pm

The Slog

CYPRUS DISASTER: Open dissent in Merkel's CDU as Schäuble's attempt to avoid responsibility for Cyprus depositors dismissed as "bare-faced lie".

merkeschauble"Mein Gott Wolfie, I haff found ze grain of truth"

Manipulation, mendacity and and madness as German, Madrid & Brussels sources admit Schäuble must've known what would happen'

Despite German Finance Minister Wolfgang Schäuble's earnest TV attempts yesterday to distance both himself and Berlin from the decision to include small Cyprus bank depositors in the bailout haircut, across the eurozone his protests were dismissed as completely untrue.

"Bullshit," said the Slog's Brussels mole this morning of Schäuble's account, "He was the leading hawk in the meeting, demanding a 40% levy on larger depositors. In order to get that level down to 10%, the other Finmins were left with no choice but to include the smaller bank customers. Herr Schäuble could've opposed the shift to haircuts for smaller savers, but he sat there saying nothing. It's a bare-facd lie".

Schäuble said on German television that both Berlin and the IMF had sought to respect the EU's deposit insurance program, which secures the savings of accounts with up to €100,000, but it had been the decision of the Cypriot government, the European Commission and the ECB to hit small-scale savers with the levy.

Says a well-placed Berlin source, "It is completely ridiculous for [Schäuble] to suggest that his was a dissenting vote on the question of small customers in Cyprus. In fact, he was from the start enthusiastic when Brussels came up with this tax levy' scheme as a way round the EU's deposit guarantee. Every German MP will recognise this as classic Wolfgang Schäuble behaviour. The high esteem in which he is held by the German people is in no way reflected inside the Bundestag."

Meanwhile, people on Cyprus and in Greece are reacting to the deal with anger and disgust, many of them preparing to queue for 36 hours if necessary to withdraw as much of their savings as possible from ATMs before the confiscation legislation is passed. Others are waiting to see if the bailout terms will be approved by the Cypriot parliament, and what happens when the country's banks reopen after a national holiday. But as every hour passes, confused postponement seems increasingly to be in play. There is no way round this for innocent depositors without a drastic change in the proposal.

President Nicos Anastasiades had planned to hold the vote on Sunday, but postponed it by one day out of fear of it would be highly negative. But speaking to the media this morning, Cyprus Parliament speaker Yiannakis Omirou said the debate and vote would now be pushed back to Tuesday. He confirmed the intention by saying, "The parliament will convene at 6pm [4pm GMT] tomorrow, because there now exist amendments to the government legislation that is to be submitted. Consequently, it requires the necessary time in parliament, in the finance committee, to examine these new proposals." Cypriot Officials were soon saying banks on the island might have to remain closed through Wednesday as well, and I understand that a Thrusday reopening has now been confirmed.

But there is far more on the go here than Cypriot politics: the German media are already having a field-day with dissension in the Merkel Coalition's Bundestag ranks. And this isn't just backbenchers making trouble: Foreign Minister Guido Westerwelle of the FDP has been openly criticising the deal among colleagues. Spiegel today reports that Westerwelle said at a party meeting on Sunday that "It would have been smarter to exempt small-scale savers" from the bank deposit tax. Scepticism in relation to Schäuble's self-exoneration is running high within the CDU itself. Approval of the bailout in the Bundestag is now a long way from being a sure thing.

Chancellor Merkel has defended the bank deposit tax, but there is general agreement in German political circles that she pushed for the levy for domestic political reasons: she is determined to show the German electorate that foreigners getting bailouts "at Germany's expense" must not be a feature of the future. "It's a good step that certainly made our agreement to aid for Cyprus easier," Merkel said of the tax. But this is hypocrisy of the highest order: Germany's gains from a cheap euro vastly exceed anything she has been asked to contribute to ezone bailouts thus far.

Meanwhile, an a much broader canvas still, investors, traders and legislators remain in shock at the solution' chosen for Cyprus. "A further escalation of the crisis in tiny Cyprus may have global implications well beyond the immediate market reactions today" wrote Julian Jessop, chief global economist at Capital Economics, "the return of fears that one or more countries may actually leave the euro-zone altogether could lead to a sustained correction in the prices of riskier assets generally." I rather fancy this is something of an understatement: any loss of faith in southern Europe at this point would sink both Italy and Spain in short order.

The euro is trading at 1.167 to the Pound (a loss of 1.22 cents) and, as widely predicted, fears of a bank run in Cyprus and elsewhere in the Eurozone sparked a mass sell-off on European stock markets so far today. But gold seems remarkably unfazed by events in the Mediterranean, and so far as I write the Dow Jones Industrials are at -0.41%, the Nasdaq Composite -0.68% and the S&P 500 -0.61%.

What we don't know of course (and won't for some time) is what's happening on bank withdrawals. But unofficially, my Madrid source who is rarely wrong tells me "There is little sign in Spain of anything unusual in that regard….yet. Far more significant is a growing sense here that Germany is up to something big, perhaps even a decision to get the hell out of the euro. It simply isn't credible to suggest that Schäuble didn't know what effect this Cyprus deal would have. After the briefing against Draghi last week, I think the smart money is on a selfish move by Berlin, but Merkel won't want to do that before the elections there unless she wants to spike the anti-eurozone guns by getting out before it all goes tits up. You have to see this Cyprus haircut as an attempt by the Finance men in Berlin and Frankfurt to test the water. There's no other logical explanation. But Merkel isn't a risk-taker. To be frank, almost none of it makes sense right now".

Notable today is that the German media led by FAZ (quelle surprise) are making hay with the fact that Greece has collected only $19 million of $13 billion owed by the country's elite tax debtors a redemption rate of under 0.002% percent. My view remains that, when Berlin starts looking in all directions of the compass for people to blame, we should all be concerned. Or if we support UKip highly delighted. Or if we're called Nigel Farage very worried indeed that events are rapidly removing his raison d'etre in British politics.

But I will close by posing this question: is Mario Draghi on holiday?

[Jan Klimkowski]

One level of this is clearly multinational geopolitics.

Note the claims about Gazprom, and the denial.

Russia condemns 'unfair' Cyprus bank levy as bailout fears grow

Putin says proposed levy on bank deposits in Cyprus, a favoured offshore haven for Russian big business, would be dangerous


Miriam Elder in Moscow
guardian.co.uk, Monday 18 March 2013 16.21 GMT

Vladimir Putin
Vladimir Putin. Russia's stock markets tumbled amid growing concerns over the Cyprus bailout. Photograph: Mikhail Klimentyev/Associated Press

A deep sense of anger and uncertainty has swept the highest levels of Russian government and big business as Moscow faced the prospect of losing billions in an EU plan to bail out Cyprus.

The proposal, which would levy a one-time fee on depositors, evoked widespread surprise and criticism in Russia, whose officials and oligarchs have flocked to Cypriot banks, seeking the stability and secrecy they are unable to find at home.

Vladimir Putin, Russia's president, said the measure would be "unfair, unprofessional and dangerous". His prime minister, Dmitry Medvedev, said the move "was just like a confiscation of someone else's money". He warned Russia would have to "correct" its relationship with Cyprus if the measure were passed.

Cyprus's parliament postponed a vote on the levy on Monday.

Russian banks and businesses have been flooding Cyprus for years, taking advantage of the country's low taxes and loose regulations. Much of the cash is then re-invested back into Russia, making Cyprus the biggest foreign director investor in Russia, at least nominally.

Cyprus has had to fight off accusations that it has become a money-laundering haven for Russia's ill-gotten gains. Undeniable is the fact that vast networks of offshore companies registered in the country have added to the opaque nature of Russian business, allowing true company owners and directors to mask themselves from public view while also avoiding taxes.

According to Reuters, nearly half of the €70bn-worth of deposits in Cyprus's banks is held by foreigners, the vast majority believed to be Russian. The Moody's rating agency said Russian deposits amounted to $12bn-$32bn coming from banks and $19bn from corporate clients.

The controversial levy, which would institute a charge of 9.9% on those holding more than €100,000 in Cyprus banks, is believed to have been designed to address EU concerns over using taxpayers' money to rescue a banking system heavily reliant on questionable Russian deposits. A plan to levy a 6.75% charge on those holding less than €100,000 is reportedly being negotiated downward.

News of the levy, announced at the weekend, caught Russia by surprise. The country's finance minister, Anton Siluanov, said Europe's failure to consult with Russia could affect its decision on restructuring and extending a €2.5bn loan issued to Cyprus last year.

The Russian stock markets plunged to a four-month low over concerns about Cyprus.

"We had an agreement with colleagues from the eurozone that we will co-ordinate our actions," Siluanov told Reuters. "It turns out that the eurozone actions on the introduction of the deposit levy took place without discussions with Russia, so we will consider the issue of restructurisation of the loan, taking into account our participation in the joint actions with the European Union to help Cyprus."

Russian oligarchs stepped in to condemn the move. Writing in the Kommersant daily newspaper, Mikhail Prokhorov, a metals magnate turned politician, warned that Europe "has opened a Pandora's box, creating a dangerous precedent in deciding the problem of the capitalisation of the banking system in problem countries".

"It's dangerous if only because it encroaches upon the foundation of Western civilisation: the sanctity of private property," Prokhorov said, noting that he held no money in Cypriot banks. "We lived through something similar many times in Soviet days, when the authorities carried out confiscatory monetary reforms. Everyone knows how that ended."

Oligarch Alexander Lebedev, owner of the Independent and Evening Standard newspapers in London, also expressed concerns, telling Kommersant: "For Russia, Cyprus was also a transit point for criminal money leaving the country. And such a tax doesn't really affect transit. There are fears for the middle class, who also used Cyprus."

Putin criticised the proposal after a meeting with his economic advisers. "While assessing the proposed additional levy on bank accounts in Cyprus, Putin said that such a decision, should it be made, would be unfair, unprofessional and dangerous," his spokesman, Dmitry Peskov, said.

Although Putin has devoted much rhetoric to calling for the "de-offshorisation" of the Russian economy and to encouraging officials and business leaders to keep their money at home since returning to the presidency last year, he has failed to directly address Cyprus's role as Russia's favourite offshore haven.

The island's finance minister, Michael Sarris, is due to visit Moscow on Wednesday.

Gazprom was forced to dismiss press reports originating in Cyprus that the state gas monopoly had offered to provide the country with loans in exchange for gas exploration licences around the island. Its spokesman, Sergei Kupriyanov, said: "I deny this."

[Adele Edisen]

Tue, March 19, 2013 6:09:10 PM
Central bank vaporizes savings accounts in Cyprus
From: Brasscheck TV <news@brasschecktv.com>

It's starting...

1930s style savings account
vaporization strikes Cyprus
- out of the blue.

Coming to a financial system
near you.

Video: 2:45 minutes long

http://www.realecontv.com/page/22709.html

- Brasscheck

P.S. Please share Brasscheck TV e-mails and
videos with friends and colleagues.

That's how we grow. Thanks.

[Magda Hassan]

Another bank charge for the bank shareholders.

[Peter Lemkin]

Tue, March 19, 2013 6:09:10 PM
Central bank vaporizes savings accounts in Cyprus
From: Brasscheck TV <news@brasschecktv.com>

It's starting...

1930s style savings account
vaporization strikes Cyprus
- out of the blue.

Coming to a financial system
near you.

Video: 2:45 minutes long

http://www.realecontv.com/page/22709.html

- Brasscheck

P.S. Please share Brasscheck TV e-mails and
videos with friends and colleagues.

That's how we grow. Thanks.

People are starting to THINK [what a concept!] here in Europe, that if it can happen in Cyprus, it can happen in their country too....and many are thinking of taking ALL of their money out of ALL banks ASAP! The banks have shot themselves in the head - not the foot! Bankrun for Europe is about to begin...and could spread further around the World. Maybe this is the moment we have been waiting for....of course, the common man/woman will be ****ed - loosing much or all...but the 'situation' will become clear....who is the enemy and always were!mallprint: