Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Er - how did the banks lose €68bn in deposits?
Just because the banks have €68bn in deposit liabilities doesn't mean they have €68bn in cash assets on their balance sheet.

The main cause of the current troubles is the large losses sustained by the Cypriot banks on their large stock of Greek sovereign bonds. Which, by the way, makes sense if you have a large number of Greek nonresident depositors. You owe the Greek citizens and the Greek government owes you.

eKathimerini: Cyprus deposits yielded more than German ones (March 18, 2013)

"Banks in countries like Cyprus and Greece can pay higher interest rates as they also earn more on loans," Dirk Becker, head of banking industry research at Kepler Capital Markets in Frankfurt, said by phone. "In addition, Cyprus banks invested a lot in high-yielding Greek debt in the past."

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
by Migeru (migeru at eurotrib dot com) on Tue Mar 19th, 2013 at 10:11:28 AM EST
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