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"The Cypriot package reinforces the fact that existing deposit guarantee schemes are only as...

"The Cypriot package reinforces the fact that existing deposit guarantee schemes are only as strong as the sovereign which backs them; something which is unlikely to go unnoticed in the rest of the region," writes JPMorgan, nearly capsulizing the contagion concern. It's an "uncomfortable precedent" for the longer-term, writes Goldman. The euro (FXE) -1%, but about 70 pips off the overnight lows.
Comments (1)
  • When your surety is a bankrupt nation, your guarantee is worth about as much as your property rights.
    18 Mar 2013, 07:32 AM Reply Like
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