Cyprus to shape future euro bank rescues:

[Wickian]

BRUSSELS (Reuters) - A rescue program agreed for Cyprus will serve as a model for dealing with future euro zone banking crises and other countries will have to restructure their banking sectors, the head of the region's finance ministers said.

The approach would mark a radical departure for euro zone policy after three years of crisis in which taxpayers across the region have effectively been on the hook for resolving problem banks and indebted governments via multiple rescue programs.

"What we've done last night is what I call pushing back the risks," Dutch Finance Minister Jeroen Dijsselbloem, who heads the Eurogroup of euro zone finance ministers, told Reuters and the Financial Times on Monday, hours after the deal was struck.

"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 recapitalize 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 recapitalizing the bank, and if necessary the uninsured deposit holders," he said.

Did they really just announce to the world that their standard strategy from this time onward will be stealing taxing the bank accounts of citizens whenever the banks have crappy investment strategies?

From what I read accounts in Cyprus will be losing around 50% of their total amount.

[itsnotoutthere]

Hmm... joining the euro doesn't seem like such a great idea now does it?

[Sir Wearer of Hats]

"we're fixing system we broke by taking your money"

"**** off"

"see, noone is compaining!"

[stevewinn]

the problems came about when the EU wanted euro expansion at all costs. most of the countries who joined the euro never met the criteria. the EU's criteria was so tough the only country who passed was Germany, France just about made the requirements. the UK with our strong global economy would have just about made with the help of a blind eye. and this is where the problems started they didn't stick to their requirement,. in order to boost the euro on the world markets they needed numerous countries and people to adopt and use it. so they turned more than a blind eye to countries joining countries who should have never been allowed to join in the first place. but join they did. and then once joined they didnt keep to the strict rules governing the euro. - the politicians were so busy congratulating themselves, they'd expanded the EU membership and the Euro, quicker than they'd ever thought possible. drunk on the success - they refused to believe anything was wrong with the system. well the chickens are coming home to roost. all the countries who should have never been allowed to join are showing. Spain, Ireland, Italy, Greece, Portugal, Cyprus, etc... so its little wonder the EU/IMF have reached an agreement with Cyprus. on the Euronews channel you could watch a live feed. they threatened Cyprus with Euro plus EU exit if they didn't agree to the latest measures. so it just goes to show. they will not allow anyone to leave the EU/Euro they are worried once outside any member country would be trailblazing a path to recovery others would surely follow and the house of cards would come tumbling down. this is not even the end, this latest deal only kicks the problem down the road and we'll be back to this within 12 months.

Edited March 26, 2013 by stevewinn

[A rather obscure Bassoon]

So from now on,if there is a bailout then the EU is going to dip into your savings to pay for their financial mismanagement,seems fair to me.

The UK isn't looking so stupid now is it.

There is going to be a big run on the Banks and the EUSSR are going to come out of this looking as dumb as ever.

Edited March 26, 2013 by shaddow134

[david090]

all you guys here are jokes, really..actually simple people like you shouldnt even vote, but you do and votes get rigged anyway. how can you compare cyprus to other eu countries, cyprus is a money laundering country

[itsnotoutthere]

all you guys here are jokes, really..actually simple people like you shouldnt even vote, but you do and votes get rigged anyway. how can you compare cyprus to other eu countries, cyprus is a money laundering country

Some of us still in denial i see.

"people like you shouldnt even vote" Hey, are you an E.U. official?

How about the bank takes 40% of your savings, you'd be ok with that would you? The real danger is letting people like you have a vote.

Edited March 26, 2013 by itsnotoutthere

[Render]

all you guys here are jokes, really..actually simple people like you shouldnt even vote, but you do and votes get rigged anyway. how can you compare cyprus to other eu countries, cyprus is a money laundering country

Finally a voice of reason.