Run on the Banks by the Banksters – Look to Cypress

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CypressProtestsBy Rowan Wolf.

[Photo courtesy of The People’s Record.]

The EU banksters are going after the deposits of the banks of Cypress and it  looks like they will succeed. Originally the European Union (EU), European Central Bank (ECB), and International Monetary Fund (IMF) wanted to reach into all Cypriot savings accounts for up 6.7% of savings, and the target was the National Pension Funds. Cypress has been targeted  largely because it is too small to fight back and they are over a barrel. Their economy is heavily dependent on the banking sector, and they have been hard hit by the economic issues in Greece.

The “troika” (an ironic name since many wealthy Russians have deposits in Cypress) of the EU, ECB, and IMF, have demanded Cypress cough up $5.8 billion euros in exchange for a $10 billion euro “lifeline.”

News of the original plan sent Cypriots to the streets and a banking holiday was declared to stop a (peoples) run on the banks. It also resulted in legislators voting with depositors against the banksters. As reported by Reuters, “… on Tuesday, Cyprus’s 56-seat parliament rejected a levy on depositors, big and small, as “bank robbery”.”

The Cypriot Finance Minister, Michael Sarris, went to Russia to try an secure a loan there (given the heavy exposure of Russian depositors), but came back empty handed. Now there is a deal on the table to take 20% of accounts over $100,000 euros deposited at the national Bank of Cypress and 4% of all holdings at other Cypress banks.

As far as I understand it, any such “deal” would need to be approved by the parliament. However, part of the maneuvering seems to be how to “do the deal” and get around parliament at the same time. As stated in the Reuters article:

In a sign of how fluid the situation remains, however, a senior ruling party lawmaker said other options were on the table, including a “voluntary haircut” in exchange for equity that would not require parliamentary approval.

The EU’s Rehn said the bloc recognized the progress made by the Cypriot government, and warned of tough times ahead.

“Unfortunately, the events of recent days have led to a situation where there are no longer any optimal solutions available,” he said in a statement. “Today, there are only hard choices left.”

The implications of what is going on in Cypress are huge – both for members of the EU, and for the United States. What we see here is that entities can reach globally into the accounts of individuals and national accounts to pay off banksters. For what is happening here is that the bank is stealing from its depositors to pay itself. The best discussion I have seen of  the events in Cypress and its implications is an interview of economist Richard Wolff by Thom Hartmann on his RT Big Picture program of 3/21/2013. Below is the interview excerpted from the full program. For closed captioning, you can way the video at YouTube

Thom Hartmann interview of Richard Wolff on regarding the Cypress banking crisis.




Rowan Wolf is a sociologist, educator, activist and writer. She is the Editor in Chief of Cyrano’s Journal and the Publisher and Editor of Uncommon Thought Journal.

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