How they made it, stole it or laundered it is not the issue any longer. Brussels and Germany just established a precedent, now its a quibble on how. Just wait until next winter for gas (if it flows) and the price. Russian oligarchs do not play well with others.
Ponzi was sophisticated. This is just a game of musical chairs. Its a few years before it gets really interesting.
That's right. It is simply offshore investment but not laundering so ostensibly legit. However there are questions about the ethos of the means by which the money was made so quickly post Soviet and why the massive tax evasion if, as they are now claiming, they are all so patriotic? As always, capitalism and contradictions make good bedfellows.
.. or Spain and Portugal, maybe Italy.
Government people in Moscow are not where investor money goes (except maybe bribes). Cypriot law offers better legal and tax protection to an investor who is looking to invest in Russia than a direct investment. Less than 20 percent is Russian mafia money and a lot of that left before this event horizon. The remainder of Russian funds are investment funding or returns. With this latest "deal" let's see what happens on Thursday when all the banks open. In any event the EU rang the bell; it can't un-ring it now.
Actually Rob is right if you have a current account you give the bank your money to do with as they wish in return for managing the value of your account, so they charge us. Usually extortionately. It does not increase but decrease although they earn a tidy sum over a working life if you stay with them for which you see nothing in return normally. If you invest, then a bank uses your money on your behalf to grow it from which they take a cut. I learned that in the principles of banking when I was obliged to learn economics as a student and those principles have not changed.
I don't find it presented that way at all Chris, bar by a few sensationalist newspapers. If anything, EU officials went and talked to government people in Moscow and were almost certainly discreetly encouraged to go ahead in order to get money repatriated so that they could tax it themselves. The whole business is mainly under the table without media or public being allowed the whole story.
Horror! Just another reason to steer clear of them. I recently turned 65 and have a bank loan which requires insurance. Unknown to me the insurance went up 3 times and they hadn't told me. As we keep as little money in the bank as possible the bank whipped out the amount sending the account into overdraft. The bank then sent me a letter about this, charging me 90€ for paying the insurance company plus 35€ for the letter! Neither party has heard the last of this!
Hi Neil. I think you will find (no doubt to your horror) that money you place with a bank does indeed legally become the property of the bank. They do however have a legal responsibility to give it back to you when you ask for it. Usually. Unless the government wants it of course. Especially in Cyprus. And maybe Greece...
Cyprus was the major mechanism that was used to allow investors to enjoy common law protections while investing in Russia. ASK yourself why did Brussels and Germany need to sell the confiscation program as one against the "bad" Russian oligarchic mafia? Shepards don't scare the sheep, they herd them using dog whistles.
Whatever, the memory of Carlo Ponzi will surely be imprinted on it all.
What you described is a merger to increase deposits used to gamble. Borrowing to purchase the smaller bank simply allowed the management and shareholders to cash-out; but it also required the buyer to increase systemic risk to cover the cost of borrowing and the added risk of losing the deposits. The forgotten banking adage remains good advice: in at 9, back at 2, out at 3 and on the golf course by 4. Lets see if the "good" banks remain standing on Cyprus after Thursday. The pinheads in Brussels and Berlin rang a bell.
Bricks and mortar usually but if there is a major recession then down it goes... We are hoping to sit it out and hold steady here.
Yes, it is very public it is Russian but no it is not being laundered, simply kept offshore. Catch up on the news a bit more my friend. The rescue deal was put in place yesterday, so the story will disappear as quickly as it hit the headlines. More the point is the lesson it is giving the banking world and those who should be keeping a strict eye on it.
As for your money becoming the bank's, have the tee-shirt from when I once tried to close an account and put it in another bank but the branch manager refused. Mistake, I went to the wrong university not to have contacts who kicked his rump for that but the audacity of even trying that! How many people do not get their money on demand though?
I don't necessarily agree. I nearly put a large fund for a family trust in a small bank I knew in London. However they were then taken over by Landsbanki (Iceland) and one dreads to think what would have happened. They offered fab interest rates at the time but I decided my "bricks and mortar" grandfather was wise. There is a reasonable return after costs (ie well above inflation) and on top because the investments are in London there is still asset growth. If we had gone into the bank I dread to think what would have happened. Infact we sold any bank related investments including shares back in late 2008. I should add I was also a sbnstantial Equitable Life pension holder, having invested in the 80s and I lost a load on that one with no compensation. If I look back over my life property has always been steady over ten years or more.
Banks seem to have the idea that once you deposit your money in a bank account it becomes theirs! Has anyone proved that the money is Russian and being laundered which was the excuse for trying to steal it? The central european bank should support Cyprus and any other country in trouble as is it has fiscal control over the euro. The banks in Cyprus were the organisations that got themselves in trouble not the depositors and stealing their money to pay for their mistakes is outrageous. Fortunately a large proportion of the population of Europe have more sense than to let the banks or the governments to get hold of their hard earned money-in Italy over half of the money in circulation is never seen by the banks or government.
Thank your lucky stars you have small change, after I have finally finished the house I,ll be lucky to have that hehe
Because I am capitalising on everybody's responses perhaps? I floated the pillow idea, I am so broke I might have to pawn my pillow. Any other ideas where I could hide my, errr, small change? No rude responses please!
I'm trying to respond to Graham's note. Why does it keep appearing under Brian's?
How is this going to be policed?
If I pay you EUR 10000 or you pay me, which one of us will tell? How else will they know?
All these dumb laws which inconvenience honest folk were dreamed up to prevent criminals using the financial system. Criminals will ALWAYS find a way around, especially smart ones.