In order to fund a bailout of Cyprus, European leaders have proposed the institution of a tax on bank deposits for residents of the small island nation. A vote is expected on the plan on later this week. Cypriots rushed to pull their money out of banks and ATMs before the tiny Mediterranean nation’s government could finalize a plan to seize depositors’ funds to satisfy austerity demands from euro zone leaders, sparking a run that prompted banks to be closed until at least Thursday.
The island nation’s leaders were huddling to come up with a way to soften the blow on average depositors, with one proposal targeting accounts with deposits above $130,000.
So, could the same thing happen in America? Judge Napolitano says yes. “The people who have more than $100,000 in the bank are targets for any government that’s looking for money to shore up its own inability to manage its finances.”
Jake Tapper on Cyprus-like Confiscation of savings in America
Who’s next after Cyprus…Eventually the U.S.?
EU demanding percentage of Cyprus bank savings accounts because wealthy Russians hide money there?
One does not steal Russian mafia money and get away with it
Cyprus has been their own private Switzerland for many years. Legal and non-legal Russian cash has swamped the banking system in Cyprus since the early 90’s. The beauty of the island; the ease of admission too and exit from the island via boat or plane; the secrecy of the banking laws; the warm Mediterranean climate and the ease of which Cypriot authorities could be bribed and bought all worked to make Cyprus the center of Russian capital flight.
Read more: businessinsider.com