Category: deposit insurance

The demise of deposit insurance: Part 4, “An odd definition of private property”

10 October, 2013 (09:00) | Banks, Cyprus, deposit insurance, deposits, Eurozone, Global news, Law, Markets, Recapitalization, Russia, Speculation, Uncategorized | 1 comment

By:David A. Smith   [Continued from yesterday's Part 3 and the preceding Part 1 and Part 2 .]   As shown in the previous posts, using as a starting point a recent New York Times (August 22, 2013) article on the bank recapitalization mess in Cyprus and how the result has delivered Cyprus’s largest bank into the hands […]

The demise of deposit insurance: Part 3, “As a last resort”

9 October, 2013 (11:42) | Banks, Cyprus, deposit insurance, Eurozone, Global news, Law, Markets, Recapitalization, Russia, Speculation |

By:David A. Smith   [Continued from yesterday's Part 2 and the preceding Part 1.]   As we’ve seen in the two preceding days’ posts, courtesy of a New York Times (August 22, 2013), the fulminations of a certain blogger notwithstanding, the Eurozone’s paymasters have concluded that their Cypriot experiment in capital confiscation has done relatively well […]

The demise of deposit insurance: Part 2, “Not in the cold war anymore”

8 October, 2013 (10:44) | Banks, Cyprus, deposit insurance, deposits, Eurozone, Global news, Law, Markets, Recapitalization, Russia, Speculation, Uncategorized |

  By:David A. Smith   [Continued from yesterday's Part 1.]   In yesterday’s post revisiting the Cyprus bank bail-in fiasco six  months after the fact, courtesy of a New York Times (August 22, 2013) story from a month ago, we discovered that the Eurozone’s financial and political leaders, determined to ‘punish’ Russian depositors for (in […]

The demise of deposit insurance: Part 1, “Whoever controls the bank controls the island”

7 October, 2013 (13:38) | Banks, Cyprus, deposit insurance, deposits, Eurozone, Global news, Law, Markets, Recapitalization, Russia, Speculation |

By:David A. Smith   After eight decades of somnolence, the world is waking up to the consequences of using the unwitting misnomer ‘deposit,’ and neither the public at large nor the policy makers have thought their way to the eventual endgame – or if they have, they’re keeping it very quiet, and the result is […]

Banker’s breach of trust: Part 3, Who should pay?

17 October, 2012 (09:17) | Banks, deposit insurance, deposits, Equity, Eurozone, Global news, Greece, Regulation, savings, Spain, Speculation, trusts |

[Continued from yesterday's Part 2 and the preceding Part 1.]   By:David A. Smith   Two days ago, working from a recent Wall Street Journal (October 7, 2012) article,  we encountered millions of Spanish depositors defrauded(**) by banks in which they placed their trust; and yesterday we saw that the deceit was structural, running from […]