Europe

Bank of Cyprus converts portion of uninsured savings to equity

"Bank of Cyprus (BoC) said on Sunday it had carried out a conversion of uninsured cash deposits in the bank into equity, one of the conditions of international lenders to offer the cash-starved island financial aid. The process, known as a 'bail-in', made depositors in the bank pay for its recapitalisation, after the institution was hit by massive losses from its exposure to debt-crippled Greece. It converted 37.5% of deposits exceeding €100,000 on March 26, into 'class A' shares – nominal value €1 -- with an additional 22.5% held as a buffer for possible conversion in the future. Another 30% would be temporarily frozen and held as deposits." Continue reading →

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20 Signs That The Next Great Economic Depression Has Already Started In Europe

"The truth is that Europe is a lot like the United States. We are both drowning in unprecedented levels of debt, and we both have overleveraged banking systems that resemble a house of cards. The reason why the U.S. does not look like Europe yet is because we have thrown all caution to the wind. The Federal Reserve is printing money as if there is no tomorrow and the U.S. government is savagely destroying the future that our children and our grandchildren were supposed to have by stealing more than 100 million dollars from them every single hour of every single day. But the alternative scares the living daylights out of our politicians." Continue reading →

Continue Reading20 Signs That The Next Great Economic Depression Has Already Started In Europe

EU against austerity: Protesters clash with police amid unrest in Spain, Portugal

"Police detained at least 15 in Madrid, including one minor, as they used force to quell an angry mob of protesters near the Spanish parliament, united under a 'Besiege Congress' slogan calling for the government to quit. The riots come as Prime Minister Mariano Rajoy is set to announce a raft of measures on Friday aimed at tackling the country's recession. An estimated 1,400 policemen were deployed around the chamber as politicians cancelled the session for the day. Protesters held signs that read '6.2 million reasons' in a reference to the latest jobless figures and when police charged them they chanted 'You have jobs, we do not.'" Continue reading →

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Prague sends aid package to Texas blast town in honor of shared Czech heritage

"Prague said Wednesday it will send thousands of dollars in funds to West, the small Texan town levelled last week by a factory explosion and whose residents are largely of Czech origin. The government has approved assistance of four million koruna (150,000 euros, $200,000), on the suggestion of Foreign Minister Karel Schwarzenberg. Last week’s massive explosion at a fertiliser plant in the town of 2,800 residents killed at least 14 people, injured around 200 others and destroyed dozens of homes. Around three quarters of the town’s residents have Czech roots, making it one of the state’s main immigration hubs from the Central European country." Continue reading →

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EU chief: Brits fighting alongside Syrian rebels pose ‘serious threat’ upon return

"Hundreds of young men from across Europe are fighting with rebel forces in Syria, the European Union’s security chief has warned. Britain has promised to step up its support for the rebels, hinting that it could be ready to send arms. But intelligence agencies have stepped up operations after a rise in the number of Europeans, notably from Britain, France and Ireland, joining fighters. Security bodies are tracking Brits and Belgians while the Netherlands has raised its terror threat to ‘substantial’ in part because of fears about citizens being radicalised in Syria. Mr de Kerchove, the EU’s counter-terrorism coordinator, said: ‘We are concerned, of course.’" Continue reading →

Continue ReadingEU chief: Brits fighting alongside Syrian rebels pose ‘serious threat’ upon return

EU governments get cold feet on financial transactions tax

"Prospects of an EU tax on financial transactions have been put into question by confusion on how it would work and a legal challenge by the UK. A six-page-long memo drafted by civil servants in the EU Council last week - seen by EUobserver - indicates cooling enthusiasm among the 11 EU countries which supported the introduction of a financial transactions tax (FTT). The officials say the FTT, which includes a 0.1 percent levy on bonds and shares and 0.01 percent on derivative products, would hit repurchase agreements on sovereign bonds, forcing up the cost of financing government debt." Continue reading →

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Where Nervous Europeans Are Really Putting Their Money

"Demand for $100 bills has jumped since 2008 as nervous Europeans stuff them under the mattress, providing vivid proof that the world still loves the dollar and confirming the benefit to the US of the currency’s status as a global reserve. The amount of dollar cash in circulation has risen by 42 per cent in the last five years, with a main reason being demand from Europe, according to a top US Federal Reserve official. According to one set of estimates by the Fed in Washington, the share of US currency held abroad has risen from about 56 per cent to nearly 66 per cent in the last five years. It amounts to a $19bn-a-year gift from the rest of the world." Continue reading →

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Swiss court orders stolen East German millions returned

"The ruling, upholding an earlier verdict by a lower court, concerns the transfer into a Swiss bank of 128 million euros from the communist East Germany after the impoverished country's demise in 1990. This transfer by Rudolfine Steindling, a colourful Austrian communist dubbed 'Fini the Red' who died last year, was conducted by a former subsidiary of Bank Austria, itself now part of Italy's UniCredit. In the 1990s Germany, by then reunified, complained that Steindling had no right to the money, which was amassed by East Germany charging fees from Western firms investing there, and that Bank Austria knew this." Continue reading →

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Lucerne orchestra axes concert with Depardieu over tax shopping

"The orchestra in the central Swiss city decided to scrap the May 25th concert over worries that the political waves caused by Depardieu’s tax avoidance activities would overshadow the performance. The film actor, one of the highest paid in France, recently took up official residence in Belgium and obtained Russian nationality to lower his income tax bill. Depardieu was criticized as 'rather pathetic' by French Prime Minister Jean-Marc Ayrault last December for his departure to Belgium, which sparked an angry response from the actor, who said he was handing back his French passport." Continue reading →

Continue ReadingLucerne orchestra axes concert with Depardieu over tax shopping