Re:Money as a System of Control (2017)
by pjc50 on Monday September 23, 2019 @09:39AM
(#21048801)
I think he's mistaken Cyprus for Greece. I can't find reference to Greece having a "bail-in". As far as I know the only place it happened in the Euro banking crisis was Cyprus. If I'm reading the correct bit of wikipedia:
> "Remaining good assets and deposits below €100,000 with Laiki Bank would be saved and transferred to Bank of Cyprus (BoC), while shareholder capital would be written off, and the uninsured deposits above €100,000 – along with other creditor claims – would be lost to the degree being decided by how much the receivership subsequently can recover from liquidation of the remaining bad assets. As an extra safety measure, uninsured deposits above €100,000 in BoC will also remain frozen until a recapitalisation has been implemented (with a possible imposed haircut if this is later deemed needed to reach the requirement for a 9% tier 1 capital ratio)"
It was not a tax by the state. It was the other way round: it was the refusal (or rather inability) of the state to act as lender of last resort and cover a private company (in this case a bank) which had gone insolvent.
The average Cypriot, not having €100k in their bank account, was not affected. Some local business owners were. The majority of victims were those using Cyprus as a tax haven due to its low corporation tax rate: https://www.taxjustice.net/2017/10/26/21561/
> "Remaining good assets and deposits below €100,000 with Laiki Bank would be saved and transferred to Bank of Cyprus (BoC), while shareholder capital would be written off, and the uninsured deposits above €100,000 – along with other creditor claims – would be lost to the degree being decided by how much the receivership subsequently can recover from liquidation of the remaining bad assets. As an extra safety measure, uninsured deposits above €100,000 in BoC will also remain frozen until a recapitalisation has been implemented (with a possible imposed haircut if this is later deemed needed to reach the requirement for a 9% tier 1 capital ratio)"
It was not a tax by the state. It was the other way round: it was the refusal (or rather inability) of the state to act as lender of last resort and cover a private company (in this case a bank) which had gone insolvent.
The average Cypriot, not having €100k in their bank account, was not affected. Some local business owners were. The majority of victims were those using Cyprus as a tax haven due to its low corporation tax rate: https://www.taxjustice.net/2017/10/26/21561/