The originally proposed levies on deposits are 9.9 percent for those exceeding 100,000 euros and 6.7 percent on anything below that.
The Cypriot government was on Sunday discussing with lenders the possibility of changing the levy to 3.0 percent for deposits below 100,000 euros, and to 12.5 percent for above that sum, a source close to the consultations told Reuters on condition of anonymity.Either way, the move's already delivered a blow to consumer confidence of the international banking system. Sure, this just involves Cypriot banks, but it was the EU that demanded the concession for a Cyprus bailout.
If it skimming plan stands in Cyprus, what other EU country in crisis might be next?
And what prevents our own Congress from pulling a similar stunt going forward? It and the Federal Reserve have already shown little respect for responsible savers. They're focus since 2008 has been on maintaining a facade of sustainability.
How many assets on deposit in banks around globe will be withdrawn in the coming days, finding their way into gold or silver or even currencies that can be stuck under the owners' mattresses?