Lessons from a Small Island

Cyprus provides the latest in a series of grim reminders that the banking system in the developed Western countries is infected by a self-inflicted, incurable disease called mismanagement, and evidence that savers and depositors – not bankers – will be the victims. The following is a summary of penalties, euphemistically known as “capital controls,” imposed thus far (March 30, 2013) on depositors in the two largest banks in Cyprus:

  • Those with deposits exceeding €100,000 will receive shares of stock in a new, surviving  bank with a face value equal to 37.5% of their deposit amounts. They will never receive  another dime “unless the bank does well,” 
  • Those with deposits up to €100,000 can withdraw only €300 per day from their accounts,
  • No one can pay bills by check without prior approval of the Central Bank, and debit and  credit cards cannot be used,
  • No one can…

Read the full article from usatoday.com…

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