My bank account's got robbed by European Commission. Over 700k is lost.

[Wekkel]

The money is simply not there. It's a question on how to resolve a bad bank, not whether there is any money.

[1713910869]

1713910869

[killerstorm]

Without the EU, they might not have the crisis in the first place.

Iceland isn't an EU member, but same thing happened to them: http://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_financial_crisis

I'm not an economist, but I guess that without being into EURO, Cyprus and Greece could have just printed more money, which is probably lesser evil.

Yes, this is how it worked in Iceland. Maybe it was better in a long term, but it wasn't exactly trouble-free.

http://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_financial_crisis#Effects

Also note that they cannot, of course, pay for foreign currency denominated debt in local currency, it would be an equivalent of a haircut.

[muyuu]

I'm assuming you will get 700k in bank shares

Yaaay free toilet paper?

Or they can sell the shares?

LOL.

How much do you think the shares of a bankrupt bank are worth?



Moreover, if you sell then you have tacitly admitted the deal and cannot claim anything back.

[wachtwoord]

At what price and how many shares did you receive? If they give you al 1.9 B outstanding shares you still receive $239M at the current market price. Price per share is meaningless.

[zeroday]

At what price and how many shares did you receive? If they give you al 1.9 B outstanding shares you still receive $239M at the current market price. Price per share is meaningless.

My bank is keeping silence. I have not received any official answer about what will happen to blocked amounts yet. Probably they are now inventing legal excuse for expropriation.
Unofficially, I was told to forget about this money for at least several years.

[infested999]

At what price and how many shares did you receive? If they give you al 1.9 B outstanding shares you still receive $239M at the current market price. Price per share is meaningless.

My bank is keeping silence. I have not received any official answer about what will happen to blocked amounts yet. Probably they are now inventing legal excuse for expropriation.
Unofficially, I was told to forget about this money for at least several years.

In this same thread on Reddit they said that it's completely your fault because you trusted a Cyprus bank with your money and it was only insured up to 100,000E. Why didn't you use a German or Swiss bank?

[zeroday]

The worst thing is, that even a month ago I was suspecting that things can go wrong. In February, I several times called my banker and lawyer and asked them if money on the account is safe, mentioning that article in Financial Times. But they convinced me that there is no reason to worry, and even if country goes default, in no way current accounts may be affected. "This is European Union and banks here can't just grab your money and go" I was told.
I got a hard lesson and now I know the meaning of phrase "TRUST NO ONE"

[Rampion]

The worst thing is, that even a month ago I was suspecting that things can go wrong. In February, I several times called my banker and lawyer and asked them if money on the account is safe, mentioning that article in Financial Times. But they convinced me that there is no reason to worry, and even if country goes default, in no way current accounts may be affected. "This is European Union and banks here can't just grab your money and go" I was told.
I got a hard lesson and now I know the meaning of phrase "TRUST NO ONE"

Well, when everybody tells you this can't happen here is when you really have to start to worry. Note this Spanish, Greek and Portuguese citizens

[Lethos]

It's like all things were things go horribly wrong, the people you asked for help when you did have concerns were not looking after your best interested, but their own. Maybe they didn't think exactly this would occur, but they lied that it was safe, it was not all insured, thus was never all safe. Pretty much every legit bank only has a certain amount of insurance, standard is around 100,000 Euro's in this case.
I'm not blaming Zeroday, just to be clear, we got banks, politicians and those in power in Europe to blame for agreeing to this deal.

What is sad is Cyprus could of been bailed out without effecting the general public, it was just stage 1 in a test so it could be used in big countries with bigger debts were they know they couldn't do a bail out. They predict bailouts are going to be needed down the road for other countries, because the EURO can't do one thing that keeps most countries moving during bad times, print money. Without that recourse, guess who ends up funding it in the end, "Joe & Jane Public".
It was pseudo-legal theft, done on a scale never witnessed before directly onto the public directly from their pockets.

I'm sorry it happened to people/companies like Zeroday, it will effect him and all the people he employed, and everyone his business ever worked with. He is an example of probably millions who were screwed by innocently trusting a bank to do nothing more than look after their money. Not invest it, just look after it, paid for that privilege even.
The knock on effect, will destabilise an entire country, far worse than Iceland for example, during it's similar finical crisis. The long arm of how many this effects goes well beyond just the people of Cyprus and regardless of your profession or even what country your in. This will be the one of many cracks that destroys the EURO, it's just a matter of time, it's not something you can do. People will not forget these things.

Have to wonder, are those same people who told you everything will be fine, still taking your calls?

[myrkul]

Without the EU, they might not have the crisis in the first place.

Iceland isn't an EU member, but same thing happened to them: http://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_financial_crisis

So, the lesson here is, The EU can't stop a country from making stupid mistakes, but if it does, the EU just makes the results more painful?

[zeroday]

Have to wonder, are those same people who told you everything will be fine, still taking your calls?

The banker is now jobless. My lawyer gives me apologies and tells me this is unprecedented case.

[killerstorm]

So, the lesson here is, The EU can't stop a country from making stupid mistakes, but if it does, the EU just makes the results more painful?

Eurozone, to be specific.

Yes, it is kinda like that, but you consider only worst case scenario.

Quite likely use of Euro (or just EU membership) can give country some boost, also it probably can fix some small problems.

But if country fucks up big time, use of Euro inhibits natural recovery.

I'm not sure that it is an inherent problem, though: quite likely it can be fixed with better integration and higher flexibility.

[WinVery.com]

Just the start 

[conspirosphere.tk]

Just the start 

+1. Italy can blow up any time from now. I say it as an insider.

[zeroday]

One of my customers in Luxembourg is moving their assets out of country right now.

[infested999]

One of my customers in Luxembourg is moving their assets out of country right now.

I'm surprised that they use a Cyprus company in Luxembourg.

[zeroday]

One of my customers in Luxembourg is moving their assets out of country right now.

I'm surprised that they use a Cyprus company in Luxembourg.

They are not from Cyprus. They are moving money out of Luxembourg.

[muyuu]

Just the start 

+1. Italy can blow up any time from now. I say it as an insider.

I think Slovenia is next in line. Just because it's small enough they can play the next experiment there, not because of their debt which isn't any worse than a number of other much bigger economies (France included).

[justusranvier]

"This is European Union and banks here can't just grab your money and go" I was told.

"The check is in the mail."
"Don't worry, it's just a heat rash."
"Of course I enjoy visiting your mother."

[zeroday]

Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone “troika” officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds.

SOURCE: It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors