Should Cyprus impose a levy of 20% on more on bank deposits, Russia could hit EU businesses...


Should Cyprus impose a levy of 20% on more on bank deposits, Russia could hit EU businesses could be hit with reprisals, as Russian citizens hold an estimated €30B on the island. "There are a number of large German companies operating in Russia," says former Kremlin adviser Alexander Nekrassov. "You could possibly look at freezing assets or taxing assets." However, Nekrassov doesn't think Russia will cut off gas supplies, as it did with Ukraine in 2009.

Comments (20)
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
     
    So, bailing out Cyprus (Cyprus!?!?) is worth starting what amounts to economic warfare with Russia? Really? Good luck with that, Germany, and good luck with staying warm next winter without Russian natural gas.
    24 Mar 2013, 07:04 AM Reply Like
  • chopchop0
    , contributor
    Comments (5171) | Send Message
     
    Did Germany and the eu really have a choice?
    24 Mar 2013, 07:23 AM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
     
    At some point, Germany and the rest will have to decide whether or not to devalue the Euro to cover all of Europe's bad loans. It's that or default. They're not going to "grow" their way out of this.
    24 Mar 2013, 07:47 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    It would take even more luck staying warm in Russia with no gas revenues.
    24 Mar 2013, 08:16 AM Reply Like
  • Oliver L.
    , contributor
    Comments (135) | Send Message
     
    Tack has a point, business cuts both ways--is Russia really willing to risk a trade war with its biggest partner (EU consumes 50% of Russian exports)? Remember that these "depositors" are by-and-large people who cheating the Russian government on its tax revenues, would be interesting to hear from someone in Russia about how much leverage they really have over Putin.
    24 Mar 2013, 10:01 AM Reply Like
  • RSI Raistlin
    , contributor
    Comments (474) | Send Message
     
    Perhaps if Russia cuts of NatGas that could be the motivation America requires to really kick in the exporting NatGas buisness......do it Russia do it
    24 Mar 2013, 08:13 AM Reply Like
  • apberusdisvet
    , contributor
    Comments (3099) | Send Message
     
    Bankers are above the rule of law; all and any losses must fall on the sheeple. Actually, the US has set the precedent with MFG, PFG and, of course, the bondholder screwing in favor of the unions in the GM case. Keep in mind that in the event the SHTF, FDIC funds will be available for less than 5% of total deposits held in the US. If the Cyprus case succeeds in restructuring deposits as "loans" to your bank, rather than inviolate personal property, the final stage to totalitarian control is assured.
    24 Mar 2013, 08:38 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (528) | Send Message
     
    Funny how Merkel Draghi nad BuBa waited for the end of the heating season before dropping the Cyprus bomb.

     

    They've known this was comming for over 6 months.
    24 Mar 2013, 10:43 AM Reply Like
  • 1980XLS-2.0
    , contributor
    Comments (528) | Send Message
     
    FDIC 5%?

     

    http://bit.ly/WBFO6P
    24 Mar 2013, 10:43 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    ap:

     

    Your first two sentences seem to comprise an oxymoron. If it's the "sheeple," who always pay, then how come GM bond holders got screwed and union rank and file were rewarded?

     

    When you deposit money in the bank, you are very much, in fact, loaning the bank money, and it's reported on their balance sheet as a liability. What did you think a bank deposit was? And, you do it subject to the FDIC insurance limits and assuming some degree of risk.

     

    If you want 100% security, there's always the mattress. (Oh, wait, that's not 100% safe, either, as someone can break in, beat knots on your head and take all your cash.)

     

    Cyprus depositors knowingly sought interest rates vastly above market rates. They should expect these to have been/be risk free?

     

    Another lesson in the no-free-lunch concept.
    24 Mar 2013, 11:25 AM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
     
    Nobody should weep for Cyprus depositors, but it's a lesson for us all.

     

    Hold some tangible assets that can't be confiscated with the stroke of a keyboard or pen.
    25 Mar 2013, 09:30 AM Reply Like
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    mick:

     

    The more important lesson is to imagine that there may be risks involved if someone is offering you 11% interest in a 1% market. If you assume those risks, then, don't complain when something adverse transpires, causing capital losses.
    25 Mar 2013, 09:34 AM Reply Like
  • jhooper
    , contributor
    Comments (8058) | Send Message
     
    FYI

     

    FDIC current reserve ratio is .35%. The target is 2%. Some estimates have it in the 20 to 25 year range when that target will be achieved.
    25 Mar 2013, 09:50 AM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
     
    Are Italian, Spanish, and French banks paying 11%? They are massively under-capitalized as well.
    26 Mar 2013, 07:47 AM Reply Like
  • et1212
    , contributor
    Comments (8) | Send Message
     
    Unbelievable. If the banks failed, wouldn't the Russian lose more?
    24 Mar 2013, 08:43 AM Reply Like
  • The Geoffster
    , contributor
    Comments (4293) | Send Message
     
    I don't know how you feel, but when someone steals from me I sort of lose any moral feeling toward them, even when they try to convince me its for my own good.
    24 Mar 2013, 08:51 AM Reply Like
  • wyostocks
    , contributor
    Comments (9114) | Send Message
     
    I read this morning that the second largest bank has reduced the maximum ATM withdrawal to 100 Euro. That will help big time.
    24 Mar 2013, 09:31 AM Reply Like
  • RSI Raistlin
    , contributor
    Comments (474) | Send Message
     
    these banks are going to be run on like a knuckleball pitcher in the stretch come tuesday.
    24 Mar 2013, 10:14 AM Reply Like
  • enigmaman
    , contributor
    Comments (2868) | Send Message
     
    The best way for Cyprus to find out the answer to the initial question is to give all depositors 72 hours to decide what they want to do, take it or leave their money in Cyprus banks. Simple, direct and unequivocally clear, end of story and also the end of Cyprus but at least the rest of the world would know without any doubt what would be in store for them should they want to consider a similar foolish tactic. IMO this would also squash the world markets concerns for contagion, no politician is going to volunteer to the next causality of such disruptive folly or worse be in the sights of the angry Russian mafia who they stole from.
    24 Mar 2013, 10:20 AM Reply Like
  • june1234
    , contributor
    Comments (4357) | Send Message
     
    60% of that islands GDP is based on its banking safe haven status. I can't see any banker waiting till last week to warn their clients not if they want see any future ones. A Forbes article said banks there have borrowed 8 X their $24b annual GDP, another article said all backed by third party swaps. That males it one BIG problem which markets and media seem to be treating lightly. Those banks are insolvent Only thing keeping that island afloat is EU cash
    24 Mar 2013, 11:37 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs