Well beyond a certain point it becomes a unsecured claim but this bank levy - at least in its initial iteration - seemed to be imposed on everyone. And while you could say this whole saga is just another case of the EU pushing its weight the thing that does make this particular story notable is the fact this is the first time they have come up with the idea of a bank levy. Before all the EU demanded was various fiscal and employment or pension reforms.
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Originally Posted by willx
The big mistake hurt was an attempt by the EU to get the government of Cyprus to void its own deposit insurance limits.
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That is an understatement.
The mistake or should I say blunder is so big it makes me pause for a moment and consider whether such clever people and technocrats could really think that such a bone headed idea was the best possible move. I think and this is where we could move into the realms of conspiracy that perhaps Cyprus was used as a testing bed to try out new ideas and see what the public reaction is. Cyprus is a small economy - one of the smallest in Europe - so the risks can be contained if things do go belly up. Well it is only an idea and a far-fetched one at that. However it does pay to consider other possible alternative reasons why this decision came to pass. In any case we will see how this pans out in due course.