Wow, you’re suckers. (It’s not up to date but I thought it should be noted here.)
“If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.”
Funny how that “if necessary” was treated as a mandatory.
Even more funny is how Governments strong-arming banks they thought had money into buying Government debt kinda caused this… Make the banks give the Government money for paper, then blame the bank and its shareholders/depositors for the banks running out of money… Take more money from the public… As if this won’t lead to the Governments demanding the banks take their bonds again!
So let me make my interpretation of this even clearer: The EU forced banks in the zone to take on Government bonds to paper over their market weakness. Then when these banks ran out of money they blamed the depositors for supposedly over-inflating the banks and declared that in recompense the depositors needed to pay the Government money.
All made particularly bitter by:
‘Look, there where you take on the risks, you must deal with them, and if you can’t deal with them, then you shouldn’t have taken them on,'” he said.
Hmm, like being strongly encouraged to buy marginal national debt? Or being effectively ordered to not collect on outstanding national bonds?
I’m not saying Russian bulk depositors are angels, but the EU sure had no problems with an “inflated” Cypriot banking sector when it could be made to buy junk bonds. There was only a problem when the gravy train stopped.
Government: THE racket.