Cyprus bank bailout agreement is pure theft: 40% of private deposits to be looted from selected accounts

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(NaturalNews) A brand new looting arrangement has been reached concerning Cypriot banks. It involves seizing the funds of all accounts over 100,000 euros, then stealing up to 40% of those funds sometime over the next few weeks, or whenever EU bureaucrats get around to deciding exactly how much to steal.

So instead of 10% being stolen from most accounts, as was originally proposed, the new deal is that 40% will be stolen from selected accounts, but not from accounts holding less than 100,000 euros. Why the 100,000 threshold for having your money stolen by the banking system? Because all EU bank accounts are insured up to 100,000 euros. So the banksters figured they could just steal anything over 100,000 and say, “Heh, it wasn’t insured, your loss!”

IMF chief Christine Lagarde characterized the theft as “a lasting, durable and fully financed solution.” And if that’s not enough of a solution, they can always loot more private accounts to reach a new solution!

Sure, it’s a great solution… if you’re the banksters stealing all the money from private account holders. But from the point of view of depositors, this “solution” looks a lot more like a mugging.

Entire accounts seized indefinitely

It’s actually worse than just the 40% being stolen from private accounts: all accounts over 100,000 euros are now indefinitely frozen (seized) until the banksters figure out exactly how much to steal. “Large deposits with Bank of Cyprus above the insured level will be frozen until it becomes clear whether or to what extent they will also be forced to take losses, the Eurogroup of finance ministers said in a statement.” (USA Today)

Not everybody is fooled by all the bankster happy talk, of course. As Colm McCarthy writes on the website:

…the eurozone countries collectively do not have an actual deposit guarantee fund in place, and the volume of deposits in many eurozone countries, not just those already in financial distress, is large relative to the fiscal capacity of the state. Bank runs by retail depositors are a serious risk, particularly in those countries whose governments lack financial credibility.

And from Mats Persson of

The Eurozone set a risky precedent when it decided to go for depositors. Images of long queues outside ATMs will have registered in other parts of the Mediterranean. If Cypriot depositors are forced to pay today, why not Spaniards tomorrow? …Events in Cyprus have shown just what a high-risk gamble the euro was… If you could design a system whereby a splinter could take down an elephant, this would be it.

No deposits are ever safe while the central banks are running things


The bottom line truth in all this is that no deposits are ever safe in any bank run by a government. Governments are inherently liars, and when it comes down to a crisis, it’s always easier to just STEAL money from depositors and call it a “tax.”

The business of banking, it seems, has largely become a business of theft. No wonder everybody’s flocking to bitcoin, the decentralized crypto-currency that’s not controlled by any government anywhere:

That’s also why the Natural News Store has just announced it is now accepting bitcoin currency as payment for orders. Anyone with bitcoins can now buy prepared foods, superfoods, organics, supplements and much more, directly from the Natural News Store.

Learn more:


Before you run off to invest in something like “bitcoin”, research the subject and also keep in mind that the various alternate currencies that exist are VIRTUAL! That means they only have a life on the web. In the event of the grid being down either with the shut off switch which the government has or through a solar event or some other catastrophe, there would be no way of accessing that money – you could say that it would virtually disappear!!!




Spain looks like it will be the next domino to follow suit!

Spain Brings the Pain to Bank Investors

Government to Impose Heavy Losses on Shareholders and Bondholders, Hire Advisers to Help Manage Lenders’ Assets


MADRID—The Spanish government will impose heavy losses on investors at nationalized banks and hire external advisers to help it manage these banks’ assets, its latest efforts to overhaul a financial sector battered by the collapse of a decadelong housing boom.

Bloomberg News


Shareholders of Bankia will be nearly wiped out. Above, its Madrid offices.

Forcing shareholders and bondholders to share the cost of restructuring the country’s five nationalized banks was a politically costly step for the government of Prime Minister Mariano Rajoy, but one that was required under the terms of a European Union bailout of Spain’s ailing lenders. The decision to solicit advice in drafting a long-term strategy for these lenders came after the state-backed Fund for Orderly Bank Restructuring failed to sell one of them, midsize Catalunya Banc SA.

The bailout fund, known as the FROB, has decided to hire consultancy McKinsey Co. and investment bank Nomura International PLC as advisers, say people close to the situation.

Representatives for the FROB and Mckinsey weren’t immediately available to comment on the decision. A Nomura spokeswoman declined to comment.

Overhauling the banks is a key part of the government’s efforts to turn around an ailing economy, now in its sixth consecutive quarter of recession. Bank credit is shrinking and unemployment has shot past 26%.


Europe’s Debt Crisis

  • 1 HR

Cyprus Bailout Q&A
Following the deal between Cyprus and its international creditors on a bailout, there are just as many questions as answers. Here our reporters address some of the most pressing issues.

European Markets Fall on Eurogroup Comments
Europe’s financial markets reflected relief that a deal to bail out Cyprus had been struck, helping the country to dodge a potentially catastrophic exit from the euro.

Relief But No Enthusiasm Over Cyprus Bailout
The haphazard, messy fashion in which the latest eurozone bailout was hammered out has left most feeling uneasy about what comes next.

The restructuring terms announced by the FROB will impose losses of up to 61% at Spain’s largest nationalized banks. At Bankia SA, BKIA.MC -41.43% the largest of the institutions and the only one that is publicly traded, shareholders will be nearly wiped out and junior bondholders will lose around 30% of their original investment.


In keeping with EU requirements that investors bear losses before companies receive state aid, the nominal value of Bankia’s shares will be reduced to €0.01 from €2 and the nominal value of its preferred shares and subordinated debt will be reduced to €4.841 billion ($6.29 billion) from €6.911 billion, the bailout fund said.

To recapitalize Bankia, the €4.841 billion worth of preferred shares and subordinated debt will be converted into ordinary shares, while the FROB will inject €10.7 billion. This recapitalization will result in a massive dilution for Bankia’s shareholders, who will be left with less than 1% of the bank.

The FROB also said it would reduce the value of preferred shares in other ailing banks—Catalunya Banc’s by 61%, Banco Gallego’s by 50% and NGC Banco’s by 43%—and then convert them into ordinary shares. But as these three banks aren’t publicly traded, the Spanish government said it would give the holders of their newly created ordinary shares the option of selling them to the country’s deposit guarantee fund.

Last month, the FROB said the preferred shareholders at Banco de Valencia SA, BVA.MC -90.74% a smaller nationalized bank, faced losses of 90%.

The government had warned that the losses imposed on investors at the nationalized banks would be significant. The FROB had ordered external valuations, which found that their liabilities far exceeded their assets. In Bankia’s case, an evaluation found that it had a negative value of €4.15 billion.

Nonetheless, imposing losses on investors is one of the politically difficult steps required of Spain in exchange for just over €40 billion in EU aid because most of those who made investments in the troubled lenders were small depositors.

Many of these small savers have taken to the streets to protest their expected losses in recent months, claiming they were misled into believing that that they were buying low-risk savings products, not risky bonds or shares.

Spain’s government for months argued with Brussels, ultimately unsuccessfully, to allow for some flexibility on state-aid rules that require investors share the burden with taxpayers.

Spain then set up an arbitration mechanism by which clients who claim they were misled can have their case reviewed; when such claims are upheld, the sales will be annulled and the clients will recover their initial investment.

Write to Jonathan House at and Christopher Bjork at

A version of this article appeared March 25, 2013, on page C3 in the U.S. edition of The Wall Street Journal, with the headline: Spain Brings the Pain to Bank Investors.



And so it appears that financial armageddon is upon us – it is no longer a question of if, but rather when, it will start here! With the feds printing $40 billion dollars each and every month, that would have been enough by itself to bring about our financial ruin, add to that our crippling trillions of dollars in debt, the missing billions from the fed, the billions we don’t have that we continue to give way to our enemies, to name just some of the financial back breakers, and then add in the fact that the world is a small place these days,and realize that what happens overseas has a direct bearing and effect on America and now with the dominoes starting to fall in Europe, it really is just a matter of time !

If you haven’t already done so – now is the time to prepare!







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