Could The “Cyprus Fiasco” Occur In The United States?

There is no question about it, really. Don’t you think?  That is what bankers do.  That is their job, one way or another.

Regardless, this article is suggesting that the Russian ‘black money’ deposits were the target.

That is not so much for money laundering, as it is for “wealth taxation”, so this is only the beginning.  Stay tuned for a piece on the UN, IMF and The World Bank.

Could The “Cyprus Fiasco” Occur In The United States?

Submitted by Tyler Durden
03/17/2013
http://www.zerohedge.com

As has been assiduously explained by members of the European statist oligarchy, the reason for the deposit tax levy, in addition to the broader unsecured debt “bail-in” bailout of Cyprus, was due to the unique funding structure of Cypriot banks, in which the bulk of funding was in the form of deposits (whether Russian or domestic), leaving a tiny €2 billion in the form of junior bonds.

Since the bailout would require realigning the balance sheet to a new, sustainable “fresh start” in which assets were remarked to a realistic value, it would mean impairing liabilities all the way down the capital structure.

.
Please click the link to see the complete article.
Advertisements

About ace5ace

60, roaming the Ozarks.
Gallery | This entry was posted in Finance & Economics and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s