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On why the ECB is cutting off Cyprus on Monday
The latest information on Cyprus is that the ECB has told the Cypriots it could no longer extend the ELA facility being used by the now bankrupt Cypriot financial institutions. Cyprus has until Monday to find the funds to support their…
US small and medium-sized banks hit by interest rates
According to an analysis by Reuters, small and medium-sized banks in the US have started to take on risk as the squeeze in net interest margins is beginning to hurt profitability. The goal is to boost returns despite the low-interest rate…
The Russian Angle in Cyprus
A lot has been made about the fact that Russian money was in Cyprus and that Cyprus was an offshore tax haven. A lot of people are claiming all of this money is mafia-related or in Cyprus to dodge taxes. And it is this claim, especially in…
Who knew about the Cypriot bank holiday and took capital flight beforehand?
the gist here is that 4.5bn euros in funds were alleged to have been shifted out of Cyprus just prior to the announcement of the country's bank holiday. The article alleges that government officials were prominent amongst those sending…
On claims of depositors, subordinated and creditors and central banks in bank resolutions
Regarding Cyprus, recently I heard someone claim that depositors are not creditors of a bank despite the fact that deposits are bank liabilities. This is bollocks. Depositors are indeed creditors, particularly in Europe where they are…
The EU Provision which will allow capital controls in Cyprus is Article 65(b)
As I indicated three months ago, the IMF now supports capital controls in specific and extraordinary circumstances, particularly in view of its experience in Iceland. This is now relevant given the situation in Cyprus. Matina Stevins of Dow…
Cyprus rejects deposit tax
Today Cyprus voted to reject the deposit tax with 36 MPs voting against and 19 abstaining. One MP was absent. No one voted for the deposit tax. And so this trial balloon of bailing in insured depositors has crashed and burned spectacularly.…
Links: 2013-03-19
Sorry for the number of links today. It is a bit overkill. But there is just a huge amount of information pouring out about Cyprus which is very relevant to anyone interested in the EU, which should be anyone that cares about investing or…