Cyprus and banks

[Eine Alpensinfonie]

Anyone else you want to accuse of lying/hate? When's your next strike?

I would want to hate anyone, but lies are lies and should not be covered up by anyone.

[amateur51]

As I've already stated, that may be all very well, but if the big boys will insist on screwing it up for the rest of us, there'll be little or no money with which such institutions will be able to operate; no such organisation will have or be able to acquire the power to protect a currency, for example.

If and as the tide turns, we'll see how the banks respond, ahinton

[teamsaint]

In a sense, Libor and sub-prime were all stoked by public greed and expectation of easy money for no risk. As for mutuality, yes, bring it back, but I do recall the general public braying for the abondment of those institutions - couldn't happen fast enough.

Mostly(like me ) bribed with a couple of hundred pounds to sell our rights to a new PLC. The remaining mutuals seem healthy enough, and credit unions are very popular.

Its hard to see how the "public" are to blame for bank greed. Most folks with money in the bank have it there for security rather than a fast buck. The shareholders perhaps should bear more responsibility.

As for hysteria..we probably need more rather than less. Our money is being stolen by the institutions we are supposed to trust.

[Eine Alpensinfonie]

[/B]

Mostly(like me ) bribed with a couple of hundred pounds to sell our rights to a new PLC. The remaining mutuals seem healthy enough, and credit unions are very popular.

I'd like to wear my extremely smug holier-than-thou hat for a few moments and declare that I voted against both Abbey National, Friends Provident and Halifax becoming banks, but taking the hat off, I have to confess to having been a shoddy capitalist in selling the free shares that came as part of the bribe package, at their highest value in each case.

[teamsaint]

I'd like to wear my extremely smug holier-than-thou hat for a few moments and declare that I voted against both Abbey National, Friends Provident and Halifax becoming banks, but taking the hat off, I have to confess to having been a shoddy capitalist in selling the free shares that came as part of the bribe package, at their highest value in each case.

A reversible hat, then. I can't remember if I voted, to be honest.
Selling the shares for the best price is hardly the work of the devil though. Especially if it funded a few dozen top CDs.......

[Resurrection Man]

[/B]

.....
Its hard to see how the "public" are to blame for bank greed. .....

The 'public' are just as much to blame as the banks. If there was no-one racking up unsustainable credit card bills or buying houses at 100% + mortgages then the banks wouldn't have much of a market.

[teamsaint]

The 'public' are just as much to blame as the banks. If there was no-one racking up unsustainable credit card bills or buying houses at 100% + mortgages then the banks wouldn't have much of a market.

or having to exist on paltry salaries and buy houses in a market where prices went sky high because of the availability(to the banks's benefit) of plentiful credit.

Don't blame the victim. The banks are the ones with the power.

Edit : and the banks are the ones who offered/still offer HUGE credit card limits. I reckon I have available balances of at least £50k that I could use any time I want. Probably more. Plain daft.And I didn't ask for it the high limits, was just given them.

[amateur51]

or having to exist on paltry salaries and buy houses in a market where prices went shy high because of the availability(to the banks's benefit) of plentiful credit.

Don't blame the victim. The banks are the ones with the power.

Edit : and the banks are the ones who offered/still offer HUGE credit card limits. I reckon I have available balances of at least £50k that I could use any time I want. Probably more. Plain daft.And I didn't ask for it the high limits, was just given them.

and you watch as people whose rent is paid by Housing Benefit find that the sum usually paid directly to their landlord suddenly gets paid into their personal account by order of The Quiet Man Ian 'Can You Hear Me Mother?' Dunkin' Donut, you watch the incidence and amount of rent arrears go sky high

[Anna]

and you watch as people whose rent is paid by Housing Benefit find that the sum usually paid directly to their landlord suddenly gets paid into their personal account by order of The Quiet Man Ian 'Can You Hear Me Mother?' Dunkin' Donut, you watch the incidence and amount of rent arrears go sky high

I heard an interview on R4 about this last week. The thinking behind it was "It'll teach people to grow up and manage their money" Well, it won't for a lot of people. If you suddenly find you have £XXX in your bank account and the childen need new shoes or you think you can buy that 10 cd set of Boulez then, with this unexpected wealth - of course you spend it. There is a fine balance between the Nanny State and teaching people how to budget and this proposal is totally wrong for a lot of people who have never had to manage and budget before.

[Simon]

The government of Cyprus allowed the banking sector to grow to eight times Cyprus's GDP by allowing it to operate a tax haven, offering high interest rates and inevitably attracting vast quantities of hot money. They were stupid enough to believe that, being in the Eurozone, they would be rescued unconditionally if the banks got into trouble. In my view they were jolly lucky to get a conditional bailout. I pity the people of Cyprus who were taken for a ride by a bunch of idiots called a government.

As so often, rauschwerk appears with an excellent post.

[Simon]

...last week's decision by Euro leaders for holders of Greek bonds to take a massive haircut had an exaggerated affect on Cypriot banks, two of which are among the largest holders of Greek bonds.

One could argue that perhaps the banks should not have had so much invested there.

The Communist led Government is locked in battle with trade unions and rival parties over an austerity programme to get its (the Govt) deficit under control.

Then the largest power plant blew up after a cache of Iranian explosives confiscated by the authorities blew up (it does beg the question that if you are going to store explosives that you don't store them next door or inside your largest power plant)

I could continue but better to read it for yourself here http://www.ft.com/cms/s/0/856fb806-b...#axzz2OdZ0hOKF

And another excellent post from RM.

(Incidentally, there are those who think that there is more to the explosion story than has been revealed.)

[JFLL]

Selling the shares for the best price is hardly the work of the devil though. Especially if it funded a few dozen top CDs.......

And if you'd kept the Halifax de-mutualization shares, they be worth about a tenth of their 1998 prices (and that doesn't allow for inflation).

[Julien Sorel]

Richard Seymour, going yet more mainstream (The Guardian). Interesting piece, though (IMHO).

http://www.guardian.co.uk/commentisfree/2013/mar/27/cyprus-crisis-why-need-banks

[teamsaint]

It is an interesting article, but seems to make some unsupported assumptions.

for instance:
"Necessarily, these banks are organised in a hierarchical system under a government-mandated central bank, which preserves the quality of national money, and enables the competing banking institutions to regulate their dealings with one another."

Well it is questionable whether the B of E has maintained the quality of money, after its QE programme.
And has it regulated the dealing of banks with one another effectively?
But perhaps I have misunderstood the terms here.

[Serial_Apologist]

It is an interesting article, but seems to make some unsupported assumptions.

for instance:
"Necessarily, these banks are organised in a hierarchical system under a government-mandated central bank, which preserves the quality of national money, and enables the competing banking institutions to regulate their dealings with one another."

Well it is questionable whether the B of E has maintained the quality of money, after its QE programme.
And has it regulated the dealing of banks with one another effectively?
But perhaps I have misunderstood the terms here.

I understand Seymour to be referring to existing banking systems necessarily having to maintain present arrangements, and not saying these would be relevant to the proposals he puts forward - which I for one, heartily welcome. At last, some sense!

The question I now ask is, would the Co-op be up for such a role?