[saturn_656]

raydan raydan:

Brenda Brenda:

And no one has been able to take their money, their hard earned money, out of their bank accounts.

I'm glad the UK government compensates their armed forces for their losses (which means the UK tax-payer), but holy hell, this hole thing is ridiculous and it should not be necessary. Who came up with this insulting idea anyway??

That's the way banks work, your money isn't in an envelope in the vault, it's tied up in mortgages and other short, medium and long term investments. When things start going bad and people panic and try to get their money out, the bank runs out of short term and has to lock everybody out. I've seen this before, in Canada, but that was quite a few years ago in credit unions.

Depends what sort of account the money is in. A bank shouldn't be using the funds from a checking account (for example) to invest, as they (the customer) are most certainly not being paid any interest.

[raydan]

saturn_656 saturn_656:

raydan raydan:

Brenda Brenda:

And no one has been able to take their money, their hard earned money, out of their bank accounts.

I'm glad the UK government compensates their armed forces for their losses (which means the UK tax-payer), but holy hell, this hole thing is ridiculous and it should not be necessary. Who came up with this insulting idea anyway??

That's the way banks work, your money isn't in an envelope in the vault, it's tied up in mortgages and other short, medium and long term investments. When things start going bad and people panic and try to get their money out, the bank runs out of short term and has to lock everybody out. I've seen this before, in Canada, but that was quite a few years ago in credit unions.

Depends what sort of account the money is in. A bank shouldn't be using the funds from a checking account (for example) to invest, as they (the customer) are most certainly not being paid any interest.

Your right, there's a word for that but I can't find the English translation.

The amount of short term assets are matched to short term liabilities and the same goes for medium and long term. But sometimes banks cheat and don't follow the rule. At any one time though, the bank does not carry the total amount of cash that everybody has in their checking account. Add to that the fact that when things start going bad, everything breaks down.

[andyt]

raydan raydan:

Add to that the fact that when things starts going bad, everything breaks down.

This is the thing with Cyprus. The Cypriot govt doesn't have the money anymore to back up the deposit insurance - they're broke. So everybody's money is at risk. What I don't understand is why this was announced beforehand. Do it quietly, make sure you get all the scummy Russian money and leave the small guys alone. But whatever, don't announce it beforehand.

My guess is that as usual the gangsters will do just fine and it's he honest little guys that will carry the can. Why should it be any different than in the US.

[Brenda]

I know that banks work like that.
Again, the former CEO just got $2M euro's put into his bank account last week. I wonder if that is now 1.8M?
If so, he owes another 100k because he got a 1.9M loan too not too long ago. Funny how that goes.

[saturn_656]

Brenda Brenda:

I know that banks work like that.
Again, the former CEO just got $2M euro's put into his bank account last week. I wonder if that is now 1.8M?
If so, he owes another 100k because he got a 1.9M loan too not too long ago. Funny how that goes.

If the guy is worth a mere 5% of that payday he'd be smart enough to have it deposited to a Swiss or Cayman Islands based account.

[martin14]

saturn_656 saturn_656:

Brenda Brenda:

I know that banks work like that.
Again, the former CEO just got $2M euro's put into his bank account last week. I wonder if that is now 1.8M?
If so, he owes another 100k because he got a 1.9M loan too not too long ago. Funny how that goes.

If the guy is worth a mere 5% of that payday he'd be smart enough to have it deposited to a Swiss or Cayman Islands based account.

2 billion Euro left Cyprus in January, can't find the figure for Feb.
I imagine a lot left in March as well.

There was discussion of the 'haircut' for months, but the Cypriot government
kept insisting they would never agree to it.


For the ones who ran to the ATMs, the money was blocked Friday evening.

I'm sure some of them may have cleaned out their accounts of the last
500 euros, but will now be overdrawn for the payment of the tax.
And overdrawn charges as well.

[martin14]

Brenda Brenda:

And no one has been able to take their money, their hard earned money, out of their bank accounts.

It gets better.


Bank accounts had holds placed on them Friday evening, minutes after the meeting finished.

Commercial banks not open Saturday anyway, they won't re-open before a deal is made.

Internet banking was shut down Friday night.

Credit Unions were open, but they were ordered closed Saturday morning, when they saw people lining up.

ATMs were limited to 400 euro withdrawls by Saturday lunchtime, they haven't been refilled.


The banks can move really fast to deny service when they want to.

$1:

I'm glad the UK government compensates their armed forces for their losses (which means the UK tax-payer), but holy hell, this hole thing is ridiculous and it should not be necessary. Who came up with this insulting idea anyway??

The Germans.


Solidarity levy when East Germany came back, and they have a history of confiscating
private wealth.

[commanderkai]

Wow. This will make the bank runs of the 20s and 30s look like textbook examples of queuing.

[Gunnair]

Banks closed and accounts frozen.

Wow.

[BartSimpson]

saturn_656 saturn_656:

Suddenly keeping your money in a bank account no longer seems like a good idea.

Be careful or the loyal statists will call you 'paranoid'.

[martin14]

Well, it's getting ridiculous.

The vote which supposed to be on Sunday, then on Monday, has now been postponed until Tuesday.

Banks will be closed until Thursday.




First it was 6.75% on deposits up to 100k, 9.9% over.

Now it looks like it will be 3% under, 12.5% over.

Last minute someone thought any accounts under 20,000 shouldn't pay tax.


Doesn't matter, taxing anything under 100k of deposits is a direct violation of
" Your deposits are safe. "

On that note, the Germans and Cypriots are now blaming each other for putting the
tax on deposits under 100k in the first place.

Cyppie says they were forced to clip "all bank deposits."
Kraut says " Just get the money, we don't care how you do it."

Guess they forgot some people thought banks were a safe place to park your money.


Meanwhile, back in the world...


Spanish and Italian markets were down 2%, with bank shares the hardest hit.

The euro lost 1% against both the pound and the dollar, leaving it at 85.6p and $1.295 respectively.

Earlier, Japan's Nikkei 225 index fell 2.7%, while Hong Kong's Hang Seng and Australia's ASX 200 dipped 2%.

Many major banks in Italy, France and Spain, some of the eurozone's most indebted countries, were down between 4% and 5%.

In France, Credit Agricole and Societe Generale were the worst affected, losing about 4.5%, while Spain's BBVA lost a similar amount.

In Germany, Deutsche Bank was down 3%, while Commerzbank was 1.3% lower.

Bond rates all over Europe up.




It's turning into a fucking circus.




And you guys like to complain about Harper....

[ShepherdsDog]

it's a circus because you have clowns running the show.....that and too many euro weenies wanting cradle to the grave socialism..... and not wanting to work to pay for all the social programs

[Zipperfish]

martin14 martin14:

This will not end well.

...unless you're a banker.

[BartSimpson]

Zipperfish Zipperfish:

martin14 martin14:

This will not end well.

...unless you're a banker.

Europeans are a fickle bunch and the bankers should not be so cavalier about messing with the European street. That same street tends to get a tad uncivil when they want to.

[Brenda]

The Euro Group President is Dutch. Jeroen Dijsselbloem tried to explain it. Yuk.