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What on earth are you talking about? And how on earth did you decide that I'm being soft on big creditors when I've said no such thing and have been arguing the opposite?

You're saying that stealing money from that majority of un-wealthy depositors who keep meagre savings in their high street banks is 'harmless'?

Then Cyprus should make a law that creditors of rescued but insolvent banks should be treated as if an insolvency has has happened. So losses being borne first by share-holders, then by junior bond-holders, then equally by senior bond-holders and depositors. So that the bigger depositors would get 23.5% in the end. (or 33.6% or 0.2% or whatever)

Yes of course. As long as smaller depositors are fully protected. (Is there really no independent deposit insurance in Cyprus?)

Now - let me know when someone from the German financial establishment suggests this is the way to solve the problem.

In the meantime there's nothing 'soft' about nuking a cornerstone of modern banking and destroying both investor and depositor confidence in order to backstop the risky investments of financial professionals.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Mar 18th, 2013 at 02:56:18 PM EST
[ Parent ]
>You're saying that stealing money from that majority of un-wealthy depositors who keep meagre savings in their high street banks is 'harmless'?<

Where exactly have I said that?

>Is there really no independent deposit insurance in Cyprus?)<

 >in order to backstop the risky investments of financial professionals.>

As long as you demand that every depositor - deposit one euro, one million euro, a billion euro - is paid out in full you are demanding the backstop.

by IM on Mon Mar 18th, 2013 at 03:32:50 PM EST
[ Parent ]

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