EU Says Deposits Not Safe From Seizure



    bandaGuarantees on deposits in the European Union are only applicable if a bank completely collapses, and does not protect depositors from having some, or all, of their money seized by governments for any reason, the European Commission said, defending a decision to impose a levy in Cyprus that for now affects only uninsured depositors with more than 100,000 euros ($130,000) in the island’s banks.

    They will lose 30-100 percent of their money until a plan agreed by the government to trigger a 10 billion euros ($13 billion) bail0ut to keep the economy from collapsing. Because those deposits were not insured, the EU said the government could take what it wanted from them without compensation.

    EU law guarantees deposits up to 100,000 euros per customer, per bank. But Commission spokesman Simon O’Connor said those guarantees only existed: “in the event of a bank failure.” He said that, “In this case, we are not talking about such a situation, we are talking about a one-off levy which will be applied as a fiscal measure, to all bank accounts in Cyprus,” he told a regular briefing in Brussels.

    That was when the plan called for a 6.75 percent confiscation of insured accounts, which has now been dropped but has left depositors wondering if political leaders will come after their money again to pay for other shortfalls.

    From the streets of Cyprus and on Twitter to radio shows in Belgium, millions of Europeans have protested at what they see as a blatant disregard for ordinary savers, which the Commission said was engendered by confusion over EU rules. “That is the distinction that we need to make,” O’Connor said.

    Critics have assailed the plan to seize the account as legalized bank robbery without a gun, with politicians taking the money of bank depositors to make them pay for bank failures and bad loans they didn’t cause.

     


    13 COMMENTS

    1. How many million of times have I said that Lord Chimpras Our Savior has bank seizures as the cornerstone for his idiotic socialist policies? Under the bullsh!t lie of “taxing the rich” he would steal the savings of the Greek people to hire 250,000 new civil servants, give citizenship to million of illegal migrants, restore pensions and old civil service jobs. All the while, he will be screaming “we’re taxing the rich and tax evaders” . All “legal” under the EU. This is not speculation, this is what he said he will do so listen to his words.

      Do NOT think that he EU will come to the rescue. Do NOT think it wont happen. That is why I moved all my money out and urge all Greek to do the same. If you don’t, it’s YOUR fault.

    2. What;s hilarious about the ranting commie is he’s now complaining about money seizures from rich people! (i.e. he’s contradicting his own politics)

      Far leftists are essentially driven by petty envy of successful people and hysteria, They are also controlled by their needy emotional desire to make us all fellow “comrades” in their collective.

      I can see more clearly why there was a civil war in Greece. These self-righteous lunatics are self-destructive anti-Hellenic extremists that will destroy Greece if left unchecked.

    3. Get your money out of the Eurozone is the message to take. Read (from Reuters):

      “If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’. 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,” he said. – Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers.

    4. I wish you guys in Cyprus got a clue. It was clear that Cypriot banks had bet on Greece and lost big time, the future was self evident. I pulled everything in 2010 and left 10,000 Euro to get by or in case of emergency. Everyone laughed at me then, nobody is laughing at me now.

    5. Too many Greeks lack a strong respect for other people’s property. This coupled with many leftist “Greeks” put their modern leftist ideology and foreign “comrades” seemingly trying to delete us ahead of preservation of our homeland) … means there is little incentive to invest money in Greece.

      Why would any rational patriotic Greek put their hard earned money into a Greece when leftist thieves will just look for ways to steal it while cowardly betraying the Greek people?

      The only help that any Greek patriots should give is money directly invested in their families, unapologetic patriotic Greeks, and any phil-hellenic foreigners. It is the height of irrationality to fund any “Greek” working to destroy Greece through illegal immigration and tolerates any foreigner colluding with Skopians trying to delete our very identity. (see any of the treasonous leftist antihellenic “Greeks” that write for trolls at the Guardian)

      We need a new Philiki Eteria. One specifically only for Greek patriots that excludes “modern” pseudo-Greeks. We cannot survive moving forward if we continue to feed own cancer at the expense of helping Greeks dedicated to Hellenism.

    6. Every politician-leader sells out their country! Traitors that’s what I call it. No one has the BALLS to stand up and say NOOOOOOOOOOOOOOOO to the troiksa and ECB and EU-Germany. A default- bankruptcy- exit from the EU would have been better for both Greece and Cyprus to one day become competitive again. Sending shock waves across the EU and every bank dominoe effect would be Germanys loss. Samaras and newly elected Cypriot President are just puppets for behind the scenes. Besides economic and political crises, there’s a much bigger hidden agenda for Merkel and all the other banksters-thieves. Total disgrace!

    7. Bravo, you were among the first pou prolaveis. Many followed you but much latter. EU should dissolve. Total disgrace!

    8. The troika, Germany And EU aren’t to blame for our debt. Foreign banks and creditos aren’t to blame either. Our prior governments that spent us into the ground our to blame coupled with the many many citizens the helped drive us to bankrupcy by demanding more and more services while evading taxes.

      The issue isn’t foreigners treatment of Greece over our fiances. We are the ones that ripped them off not vice versa. It’s their patronizing and hateful treatment of Greece over FYROM and illegals flooding our country.

    9. Let me clarify, I pulled it out Greece altogether, not Cyprus….and that got me on the taxmans ‘tax evasion’ list. It has taken me three months to prove otherwise because, thankfully, my smarter half has kept all the records. Still, it cost me thousands for the accountants just because I chose to move MY money. Others who were less organized are now facing 45% taxation. People saved their money for thirty, forty years and moved them to safer banks and countries are now ‘rich tax evaders’.

      I pity anyone stupid enough to believe that the worse is behind us.

    10. The EU is now proving that it is a sham. From day one, I believed the EU was nothing more then captured markets for German/French industries. Now we see the proof of it.

      Some people believe that the EU is helping Greece, but in reality, the vast majority of the ‘help’ is pouring public money into the German/French banks via Greek bailout.

      Anywho….if you live in Cyprus, good luck.

    11. While they did not hold a gun to our heads, it was in their interest for us to borrow and buy their goods. Over 60% of Germany’s trade use to be with the rest of the EU. A usery mentality of ‘if you lend them, they will buy’. A sort of supplying the money for the cocaine of greed and goods addiction.

      It is not 100% of the story, but a big part of it.

    12. It was also in their interests for us to pay for goods we bought. I blame them for turning a blind eye to FYROM and offfensively trying to turn flooding illegals into “victims” but its not foreigners fault we are deadbeats and lack a real economy.

    13. You are right that the money is mostly flowing right back out to recapitalize foreign banks but keep in mind they too have a right to protect their citizens and we were the ones that screwed foreign creditors. This horrible debt situation is not something anyone in France Germany or anyone else in the EU wanted. It wasn’t part of some master plan to hurt Greece. We did it essentially to ourselves.

      You know I am first to defend Greece but I don’t believe in sophistry. If we point fingers at others, for our own mistakes, then we will never improve. Root cause analysis is the first step to fixing problems.