Failed European banks are now demanding the seizure of 47.5 percent of funds in private savings accounts in Cyprus.
This new form of bank bailout referred to as a “bail-in” or recapitalization, no matter how they label it, is nothing more than a theft of private savers.
According to Reuters:
Cyprus and its international lenders have agreed to convert 47.5 percent of deposits exceeding 100,000 euros in Bank of Cyprus to equity to recapitalize it, banking sources said on Sunday.
Under a programme agreed between Cyprus and lenders in March, large depositors in Bank of Cyprus were earmarked to pay for the recapitalisation of the bank. Authorities initially converted 37.5 percent of deposits exceeding 100,000 euros into equity, and held an additional 22.5 percent as a buffer in the event of further needs.
“There was an agreement concluding at a final figure of 47.5 percent this morning,” a source close to consultations told Reuters.
What began as an across-the-board pickpocket of private bank accounts in Cyprus is now targeting only those with over 100,000 euros, as if to pacify the anger among the less privileged.
This brazen action by international bankers is a dangerous precedent for other European nations facing the same bank-engineered debt crisis.