European Union is robbing its citizens' bank accounts. 9.9% to be confiscated.

[bubblesort]

Just a little update.

I'm among thousands of unlucky holders of accounts in Cypriot bank which is going to be "restructured" by EU financial authorities.
Today I had conversation with my banker and found the following:

- All the bank's accounts (current, savings, deposits, no exceptions) are frozen and cannot be accessed anymore.
- The bank will be split on "good assets bank" and "bad assets bank". All money on current accounts will be treated as "bad assets" (except ones with less than 100k) and will be moved to a "bad bank" to be frozen for at least two years. Further, about 40% of these "bad" money will be lost after the "bad" bank is "sold with discount". Actually over 2 billions EUR of money from "bad" accounts will be contributed to pay state's debt.
- Accounts with less than 100k will be moved to a "good bank", but all withdrawals will be strictly limited for a long time due to new capital control law.
- All account in both "bad" and "good" banks will be subject for additional 9.4% one-time levy.

This means that Cyprus debt will be paid by the money seized from thousands of small and midsize businesses and savers who have over 100k. This includes everyone who has saved their money for many years for retirement or just to buy a house.

Could you believe all this is happening in European Union?

Frozen for years?  This is worse than I thought.

Good luck, and stay safe out there zeroday.  Do you think Cypriots will start using bitcoin en masse?

[1715445563]

1715445563

[1715445563]

1715445563

[1715445563]

1715445563

[zeroday]

Cypriot Parliament agreed to come up with a portion of the bailout money by nationalizing the pensions of state-owned Cypriot companies.

All account in the second largest bank of the country with be frozen for years. Capital control to be enforced for all financial operations, which means nobody can transfer money abroad.

[Vladimir]

The only way this makes any sense for Cyprus is if they agree on this now only to default big time as soon as they get 10Bn from German banksters.

[rpietila]

Cypriot Parliament agreed to come up with a portion of the bailout money by nationalizing the pensions of state-owned Cypriot companies.

All account in the second largest bank of the country with be frozen for years. Capital control to be enforced for all financial operations, which means nobody can transfer money abroad.

I am a precious metals dealer with sometimes large bank balances. Luckily I am stationed in Finland. But if I were in Cyprus, how could I continue with my business? From what you have told so far, those measures are wiping some 50% off your GDP overnight. Are all the smallbiz owners just expected to fold?

[zeroday]

I am a precious metals dealer with sometimes large bank balances. Luckily I am stationed in Finland. But if I were in Cyprus, how could I continue with my business? From what you have told so far, those measures are wiping some 50% off your GDP overnight. Are all the smallbiz owners just expected to fold?

This is exactly what my business is experiencing now. Recently, we got several prepayments for our services, plus pending wages for over 20 of our workers. All this is frozen now.

[zeroday]

Luckily, about a year ago I invested some money in bitcoins as part of asset diversification. Everyone told me that it's crazy super high risk investment, but now it would cover all our losses if it goes beyond $90/btc. I really hope...

[Amitabh S]

Planning to use Bitcoin-central or MtGox as a bank account for storing Euros. It will not earn interest but still we can make money by trading from time to time. Any comments?

A very, very bad idea.

Can you elaborate why.

[Vladimir]

You could ask those who boasted getting higher interest on their USD deposits in bitcoinica than in banks.

Even though, mtgox shall be given a credit of being reasonably reliable since the previous 30$ peak, they are still are very risky. I do not think that your deposits there will be  insured (but check with them). They are rather checkered with scandal history. Lots of people complained in the past about not being able to get money out of mtgox (I do not know who is right and who is  wrong in those stories, but the fact remains).

However, this is not only about mtgox. I would not trust any Bitcoin business any more than I absolutely have to and if I have to trust them I would minimize time during which this trust is extended and minimize assets at risk as much as possible.

I would suggest only using Bitcoin exchanges in a "hit and run" fashion. By this I mean: transfer money in, buy bitcoins, transfer bitcoins out to yourself or other way around. Of course, if you daytrade it is another matter and you gonna have to carry counter-party risks.

[bubblesort]

Luckily, about a year ago I invested some money in bitcoins as part of asset diversification. Everyone told me that it's crazy super high risk investment, but now it would cover all our losses if it goes beyond $90/btc. I really hope...

In your own financial interests, you need to spread information about bitcoin to increase demand.  Print up some fliers and distribute them at protests and among business people... anybody who might be scared and have money to buy bitcoins with when the banks open.  If enough people from Cyprus buy in then you'll get your $90 US per BTC to cover your losses.

If you have a hard time making a flier there have been some graphic designers in the newbies forum who might help you if you ask.  Check this thread and this thread.

Good luck!

[zeroday]

Doing this right now. Also I'm posting bitcoin related comments at all latest news about Cyprus.

[cedivad]

A 10% lost was somewhat acceptable to my eyes. But what you describe is something I cannot fully realize. I'm happy for your good bitcoin investment, remember to sell once that we reach 90$.

[Amitabh S]

[Fiyasko]

I know its all just skeptisism, but im pretty sure that it was this European Union bank stunt that made bitcoin jump so much

[hashman]

that's an absolute disgrace, they can just decide to steal 9.9% of your money and there's nothing you can do about it.

Wow what a great offer, deposit your cash with us and we'll steal 10% of it to pay off debts made by corrupt bankers

The interesting thing is they are bothering to tell you about it this time.  Of course the money controllers can do this anytime they want by loaning themselves new money.  This time they are telling you.  Any insiders care to tell us why? 

[Sage]

that's an absolute disgrace, they can just decide to steal 9.9% of your money and there's nothing you can do about it.

Wow what a great offer, deposit your cash with us and we'll steal 10% of it to pay off debts made by corrupt bankers

The interesting thing is they are bothering to tell you about it this time.  Of course the money controllers can do this anytime they want by loaning themselves new money.  This time they are telling you.  Any insiders care to tell us why? 

Correction:  could do this when they had the monopoly. 

No longer, now there's options.  They've inadvertently lit the fuse.  This ones gonna blow up in their face.

[Puppet]

Id just like to point out; one can claim the government is stealing from savers, but if the government and EU did nothing, those banks would go bankrupt and big and small savers alike would lose most, if not all of their money. After all; that money isnt theirs anymore, they lent it to the bank at interest. Is that really a better solution?

Now for sums below 100K those funds were supposedly guaranteed by the government and I can understand the anger; but for anything above that, if you have all your money invested in an insolvent bank, you are going to take a haircut one way or another and blaming the government doesnt make much sense.

[Vladimir]

I think the anger is pretty much about discrimination Cyprus has experiences and about their most important industry of Cyprus intentionally destroyed by eubullies while preserving their German and French own banks that  are equally insolvent.

But it is ok, it is only Russian mobsters who got haircut or more likely a headchop. So no biggie.

EU has intentionally destroyed the economy of Cyprus by refusing to create an extra 6 billion accounting entry in their computers. This is all.

[rpietila]

EU has intentionally destroyed the economy of Cyprus by refusing to create an extra 6 billion accounting entry in their computers. This is all.

Indeed. You know, no matter how big a war is, it has its first casualty. Yesterday it was safe to do stupid things, today it is safe no more. Bad for cypriots.

[Vladimir]

True.

Apparently German votes demand that. So it could not have been helped.

[rpietila]

True.

Apparently German votes demand that. So it could not have been helped.

Germany, the old culprit