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

[Kazu]

Not only is it the first domino, but also since the EU not only endorsed, but CAUSED the theft to occur, people are likely to start withdrawing from other European banks.

They SHOULD! While they still can. It's official:
http://www.businessinsider.com/olli-rehn-cyprus-depositors-2013-4

Big bank depositors could take a hit under planned European Union law if a bank fails, the EU's economic affairs chief Olli Rehn said on Saturday, but noted that Cyprus's bailout model was exceptional.

"Cyprus was a special case ... but the upcoming directive assumes that investor and depositor liability will be carried out in case of a bank restructuring or a wind-down," Rehn, the European Economic and Monetary Affairs Commissioner, said in a TV interview with Finland's national broadcaster YLE.

Of course they should. They'd be idiots not to.

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[freespirit]

I don't think the Cyprus government stifled competition at all. I had a friend that was selling securities out of Cyprus up until a year ago (thank god) when he switched to Panama. If anything they were reckless in their handing out licenses (Genius Funds).

I meant licensing of banks. (other kinds of financial services is a completely different story) For instance, compare the number of banks and their sizes in relation to each other in Cyprus and Luxembourg (comparable by population and both being "financial centres"). Cyprus has (had) 2-3 "TBTF" banks with lots of branches, some branches of foreign banks from the EU and elsewhere (each having just one or a few offices in Cyprus) and that's it. Luxembourg on the other hands has about 150 banks and they seem to be doing fine. (well, so far at least.. see http://online.wsj.com/article/SB10001424127887323550604578408721050676326.html )

[freespirit]

As to why the Cypriot banking sector was kept this way by the govt/CB, this might be the answer:
http://translate.google.com/translate?sl=ru&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&eotf=1&u=http%3A%2F%2Fwww.fxteam.ru%2Fforex%2Ffundamental%2F%3Faction%3Dshow%26id%3D6568

First, all these years, the Central Bank of Cyprus has not issued new licenses to private banks, trying to keep the rest three or four locals. As a result of these giants made, which are now very difficult to close.

Secondly, the Cypriot banks are managed and controlled by a bunch of retired old farts who received seats on the board of directors as an honorary pension for their services in completely different industries.

Third, the trade unions, which are not allowed to regulate the number of bank employees who have so much power that they can at any time stop the operation of any bank (which, incidentally, has already happened).

The investment policy of banks - is a separate issue, which is scary to think about, after all those losses that have come out, this is just the tip of the iceberg.

[caveden]

Switzerland has struggled to keep the CHF rate reasonable to stop their export base being hollowed out by a cheap euro. They have even threatened to print as many francs as it takes to do it. The problem is that the few countries which try to run a sound monetary system are undermined by all the others who are in competitive devaluation. Unless world trade collapses the currency wars reduce all states to a beggar-thy-neighbour policy.

Please, that's mercantilist reasoning. It was debunked a couple centuries ago.

Swiss were doing very well with the strong CHF. Their purchasing power was rising yearly. Now, to temporarily protect a small sector of their society (exporters), they will impoverish their entire society and all those who hold CHF! That's pure nonsense. Why everybody should have their purchasing power decreased in order to save a less efficient sector of their society?
And btw, many exporters also benefit from a strong purchasing power, as they also import some inputs to their business.

[solex]

Switzerland has struggled to keep the CHF rate reasonable to stop their export base being hollowed out by a cheap euro. They have even threatened to print as many francs as it takes to do it. The problem is that the few countries which try to run a sound monetary system are undermined by all the others who are in competitive devaluation. Unless world trade collapses the currency wars reduce all states to a beggar-thy-neighbour policy.

Please, that's mercantilist reasoning. It was debunked a couple centuries ago.

Swiss were doing very well with the strong CHF. Their purchasing power was rising yearly. Now, to temporarily protect a small sector of their society (exporters), they will impoverish their entire society and all those who hold CHF! That's pure nonsense. Why everybody should have their purchasing power decreased in order to save a less efficient sector of their society?
And btw, many exporters also benefit from a strong purchasing power, as they also import some inputs to their business.

It's a struggle to interpret this SNB view differently: "any appreciation of the Swiss franc would compromise price stability and have serious consequences for the Swiss economy."
http://www.euroinvestor.com/news/2013/03/21/snb-will-defend-eur-chf-floor-for-foreseeable-future-official/12259460

[zeroday]

The hearing of pending claims filed by affected depositors in The Supreme Court is scheduled for April 21st 2013.
On this date we'll see the fairness of the judicial system.

[Operatr]

This is beyond heinous and unacceptable

To save their own asses Cyprus is content to help the small-medium business sector fail outright by simply taking their business funds from them to repay their many sins. So later when they manage to drive small business elsewhere, what are they going to do with that void in the economy?

Blind leading the blind...and Zeroday is the first of many real world victims of this giant bubbleconomy we have now. Unfortunately I think the first of many more to come.

Good luck I hope you save your business!

[conspirosphere.tk]

It could have been worse, if they were able to steal his bitcoins too. 
But maybe they did not think about it... yet.

[myrkul]

It could have been worse, if they were able to steal his bitcoins too. 
But maybe they did not think about it... yet.

Like to see 'em try.

[zeroday]

Today I've sold another part of my bitcoins and now I have money enough to completely pay off all our debts to customers and contractors.
Thanks to Lady Luck and Satoshi Nakamoto for the resurrection of my business!

I'm so inspired with bitcoin that I'm thinking about launching serious bitcoin related business project. Will announce it soon.

[marcus_of_augustus]

Today I've sold another part of my bitcoins and now I have money enough to completely pay off all our debts to customers and contractors.
Thanks to Lady Luck and Satoshi Nakamoto for the resurrection of my business!

I'm so inspired with bitcoin that I'm thinking about launching serious bitcoin related business project. Will announce it soon.

and there you have it ... first proof that a small bitcoin holding has proved to be a viable hedge against a failed banking system.

[Crypt_Current]

Argument against islands:  Too easy to nuke.

sucks for the small-medium business sector.  gubment gotta do what they gotta do under threat of violence from bigger entities...

jpg bitcoin user unaffected blah

[muyuu]

Argument against islands:  Too easy to nuke.

sucks for the small-medium business sector.  gubment gotta do what they gotta do under threat of violence from bigger entities...

jpg bitcoin user unaffected blah

Everywhere is easy to nuke nowadays, man.

Thankfully we have BTCitcoin.

[cho]

Thx zeroday for the updates, great news about recouping your losses. I'm curious about what is going to happen at the supreme court hearing...

[Herodes]

The hearing of pending claims filed by affected depositors in The Supreme Court is scheduled for April 21st 2013.
On this date we'll see the fairness of the judicial system.

The truth is already told. The mafia and those with political connections, already had their money withdrawn from the London branches of the Cyprus banks. It's always the businesses that are legit and the small man that takes the hit.

[pinger]

Today I've sold another part of my bitcoins and now I have money enough to completely pay off all our debts to customers and contractors.
Thanks to Lady Luck and Satoshi Nakamoto for the resurrection of my business!

I'm so inspired with bitcoin that I'm thinking about launching serious bitcoin related business project. Will announce it soon.

I'm happy to read this. Both news.

Good luck and keep fighting.

[teodor87]

The most of circulating assets on our business Current Account are blocked.
Over 700k of expropriated money will be used to repay country's debt. Probably we will get back about 20% of this amount in 6-7 years.

I'm not Russian oligarch, but just European medium size IT business. Thousands of other companies around Cyprus have the same situation.

The business is definitely ruined, all Cypriot workers to be fired.
We are moving to small Caribbean country where authorities have more respect to people's assets. Also we are thinking about using Bitcoin to pay wages and for payments between our partners.

Special thanks to:

- Jeroen Dijsselbloem
- Angela Merkel
- Manuel Barroso
- the rest of officials of "European Comission"



P.S. 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".


[ 2013-04-01 11:32:19 PM Update ]

Deposits under €100,000 in Laiki will be transferred to the BoC. All deposits belonging to credit institutions, insurance companies, the government and other public bodies such as local authorities and municipal councils will also be carried over to the BoC. The same applies for charity foundations, schools and educational bodies and deposits belonging to the country’s main bank card transaction agency, JCC Payment Systems Ltd. Depositors who move from Laiki to the BoC are not part of the haircut.
The deposits that will not be transferred to the BoC will be part of a bad bank that will undergo resolution, i.e. an orderly wind down. Although the money will be there nominally, depositors will not have access to their money for an indefinite amount of time. As the bad bank slowly starts tidying up its account books cash would start going into the accounts, but the depositors could lose a substantial part of their savings if the bad bank fails to fully recoup all of its bad assets, as expected by analysts.

Source: cyprus-mail.com

Now we have untouchables whose accounts in Laiki Bank are not affected. This means that money expropriated from regular business, current and savings accounts will sponsor all other "tax exempt" accounts.

[ 2013-04-02 05:32:24 PM Update ]

I have news from a law company who are now working on class action lawsuit filed by the depositors of Laiki Popular Bank and The Bank of Cyprus.
At this moment they are gathering information from affected account holders with over 100k EUR amounts and looking for legal grounds to appeal the seizure of funds.

Our attorney assumes that, with the current situation, it is most likely that the depositors of Laiki Bank will eventually lose 100% of any amount over 100K EUR.
Although legal research is not yet finished, lawyers suspect that the whole situation with bailout is contrary to the constitution of Cyprus and the European Declaration of Human Rights.
We have already had precedents where local Cypriot lawyers backed by influential business figures have already won some small victories.

I'm asking everyone, who has affected account in Laiki Bank or The Bank Of Cyprus, to contact me regarding participation in the class action by sending me private message.

[ 2013-04-04 07:37:24 AM Update ]

Central Bank could face slew of lawsuits from depositors

LARGE depositors in Laiki Bank who face losing most if not all their money have warned they will take the Central Bank’s top brass to court if even one cent is taken out of their accounts.

The threat of legal action raises the spectre of the bailout programme unravelling in the courts, and slapping the state with massive sums in penalties.  

A lawyer representing a number of large depositors sent a letter to Central Bank Governor Panicos Demetriades last Thursday warning that if a haircut of any size was imposed on their deposits held at Laiki Bank, depositors will file a private criminal case against the governor, board members, and certain CB officials for allegedly committing “a number of criminal acts and omissions”.

[ 2013-04-10 06:41:50 AM Update ]
Today I've sold another part of my bitcoins and now I have money enough to completely pay off all our debts to customers and contractors.
Thanks to Lady Luck and Satoshi Nakamoto for the resurrection of my business!

I'm so inspired with bitcoin that I'm thinking about launching serious bitcoin related business project. Will announce it soon.


/the material in this post can be used on any resources without any restrictions/

Here is something I wonder about:

Since you know the problems in Cyprus, why did you wait until they froze your assets?

I'd be there closing the account in the matter of minutes after I hear the news.

Actually I would have withdrawn them when the crysis hit Greece, since your economies are linked.

Hath you moved the moeny to St. Mauritius, now you'd be happy and rich, and not sad with 15% of your assets.

Here is a lesson to be learned.

[Xiaoma]

Here is something I wonder about:

Since you know the problems in Cyprus, why did you wait until they froze your assets?

I'd be there closing the account in the matter of minutes after I hear the news.

Actually I would have withdrawn them when the crysis hit Greece, since your economies are linked.

Hath you moved the moeny to St. Mauritius, now you'd be happy and rich, and not sad with 15% of your assets.

Here is a lesson to be learned.

So basically you didn't read the thread... 

When this will happen to your country, will you have learned the lesson?
When your company will fire you because government took your salary, will you learn the lesson?

[noedaRDH]

[ammo88]

Here is something I wonder about:

Since you know the problems in Cyprus, why did you wait until they froze your assets?

I'd be there closing the account in the matter of minutes after I hear the news.

Actually I would have withdrawn them when the crysis hit Greece, since your economies are linked.

Hath you moved the moeny to St. Mauritius, now you'd be happy and rich, and not sad with 15% of your assets.

Here is a lesson to be learned.

Thank you Captain Hindsight!!

http://4.bp.blogspot.com/-cCYbxxHhP6c/TwBLMYSgpvI/AAAAAAAAAOU/HKx7fxT7Nmo/s1600/hindsight2.jpg