Europe

Greek bank official dismisses ‘haircut’ report as “baseless”

"Greek leaders have repeatedly dismissed the possibility they will have to 'bail-in' depositors to prevent the collapse of the banking system. But citing bankers and businesspeople with knowledge of the measures, the Financial Times reported: 'The plans, which call for a 'haircut' of at least 30 percent on deposits above 8,000 euros, sketch out an increasingly likely scenario for at least one bank.' The report quoted a source as saying: 'It (the haircut) would take place in the context of an overall restructuring of the bank sector once Greece is back in a bailout programme.' The head of Greece's Bank Association dismissed the report as 'completely baseless'." Continue reading →

Continue ReadingGreek bank official dismisses ‘haircut’ report as “baseless”

“It Could Never Happen Here”

"Of course, not everyone in Greece is hurting. Many people saw this coming and took action. They took all their money out of the banks, put it under the mattress, or maybe stored it in a safe. Maybe they bought gold, or diamonds, or something else. These people aren’t standing in lines at ATMs. They aren’t going to go homeless or hungry. But these people get a pretty bad rap—at least here in the US, where we call them 'doomsday preppers.' Or 'bunker monkeys.' Or 'conspiracy theorists.' Or 'gold bugs.' They take a beating. Jim Rickards tweeted the other day, 'I’ll bet there a lot of Greeks saying, ‘I wish I had bought some gold.’' Truer words have never been spoken." Continue reading →

Continue Reading“It Could Never Happen Here”

Greeks awake to shuttered banks on day after voters reject austerity

"Greeks awoke Monday to the stark reality of the country's accelerating crisis — shuttered banks and ATMs with little cash — hours after they voted resoundingly to reject more austerity measures in exchange for another bailout. The results — 61% voted 'no,' compared with 39% for 'yes' — left the bankrupt country's future in the European Union and its euro currency uncertain. Greece entered a second week of severe restrictions on financial transactions and faced the prospect of even limited amounts of cash drying out, with no prospect of an immediate infusion. Greece imposed the restrictions to stem a bank run after the vote was called and its bailout program expired." Continue reading →

Continue ReadingGreeks awake to shuttered banks on day after voters reject austerity

Greece defaults on $1.7 billion IMF payment

"Greece became the first developed country to default to the IMF, an organization of 188 nations that tries to keep the world economy stable. Greece will now be cut off from access to IMF resources until the payment is made. The move came hours after the country made a desperate attempt Tuesday to halt its plunge into economic chaos by requesting a new European bailout. Greece asked for a two-year bailout from Europe, its third in six years. Greek banks remained shut Tuesday and limits on cash withdrawals were in place as the country tried to stave off financial collapse before the vote. Daily withdrawals are limited to 60 euros, or about $67." Continue reading →

Continue ReadingGreece defaults on $1.7 billion IMF payment

Greece Closes Banks and Stock Markets, Introduces Capital Controls

"The banks in Greece and the Athens Stock Exchange will remain closed until at least July 6, the day after the referendum on the austerity measures demanded by the country’s creditors. In the meantime, cash withdrawals at ATMs will be limited to 60 euros ($66) and transfers abroad will be forbidden. Greece is the second Eurozone country, after Cyprus in 2013, to impose capital controls. The move is evidently aimed at preventing panicked Greek investors and savers from taking their money out of the nation’s banks and moving it elsewhere. In the days before the predictable stall of the negotiations with Europe, many Greeks rushed to withdraw their money." Continue reading →

Continue ReadingGreece Closes Banks and Stock Markets, Introduces Capital Controls

Austria Repatriates 110 Tons Of Gold From Bank of England

"Six months ago we warned that Austria was considering it, and now, as Kronen-Zeitung reports, with no rigged Swiss-like referendum required, Austrian Central Bank Governor, and the person many claim is in Mario Draghi's inner circle of trust (soon to be revised) Edwald Nowotny has committed to repatriating 110 tonnes of gold. This is part of Nowotny's new 'gold strategy' and with his position (on paper) as one of Draghi's foremost lieutenants, appears to be a big stab in the back for super money printing Mario. Austrian central bank plans to keep 50% of its gold reserves in Austria vs 17% now, Kronen-Zeitung reports, citing governor Ewald Nowotny’s unpublished new 'gold strategy.'" Continue reading →

Continue ReadingAustria Repatriates 110 Tons Of Gold From Bank of England

Cyprus: 16 months of capital controls, banks still pitifully capitalized

"It’s been over a year since the banking system in Cyprus officially went bust. On Friday, March 15, 2013, practically everyone in the country went to bed thinking that everything was just fine. Many had probably gone to the bank that very day to do business, or logged on to an Internet banking platform. Yet the very next morning, they woke to a completely new reality: the nation’s banks were broke, and the government was in no position to rescue them. All the promises they had been told about government guarantees and having a ‘well-regulated’, sound banking system turned out to be lies." Continue reading →

Continue ReadingCyprus: 16 months of capital controls, banks still pitifully capitalized

IMF pronounces Bulgaria’s banks safe, 2 weeks before bank run

"Earlier this summer, IMF bureaucrats went to Sofia, Bulgaria to study the country’s economic progress. And roughly a month ago, they released an official report which stated, among other things, that Bulgarian banks are 'stable and liquid.' Talk about epic timing. Because less than two weeks later, Bulgaria’s banking system was in the throes of a full-blown crisis. There was a run on two of the nation’s largest banks—several hundred million dollars had been withdrawn in a matter of hours. And the Bulgarian central bank had to step in and take over both of them or risk a collapse in the entire system." Continue reading →

Continue ReadingIMF pronounces Bulgaria’s banks safe, 2 weeks before bank run

Robbing Peter

"Spain may defend its decision by pointing out that it has one of the lowest tax takes in the European Union, which is true. However, what should be the issue here is not the amount of tax being imposed, but the principle upon which the tax is being taken. Let there be no doubt about this bail-in or any other—it is pure theft. The measure in Spain is also an advance on the concept that, as long as an emergency is perceived to exist, confiscation is justified. In Spain, no emergency situation is being pretended; they simply want the money and have decided to take it." Continue reading →

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Spain Issues Retroactive 0.03% Tax on Bank Deposits

"Spain will retroactively tax bank deposits to January 1, 2014 stating the move will boost growth and job creation. Guru Huky correctly labeled the tax for what it is 'More than a tax, this looks like a mini seizure of deposits. Someone likely needs a few million and to balance the books.' The notion that a tax increase will boost the economy is of course absurd. But don't worry, it's only 0.03%, nudge nudge, wink wink ... for now." Continue reading →

Continue ReadingSpain Issues Retroactive 0.03% Tax on Bank Deposits