Re: Re: Cyprus Bail Out


“Mr. Sorkin writes: “Cyprus is unique. Besides being tiny, its banking system looks different from those in most other countries. Much of the big money deposited in its banks is from foreign investors, including Russians who have long been suspected of money laundering. Those investors had fair warning that Cypriot banks were troubled.”

As for the bailout’s implications for Europe, there may be an upside. The willingness to impose so-called haircuts on depositors “shows that the European Union is still grappling for ways to reduce the region’s debt levels, a process known as de-leveraging,” DealBook’s Peter Eavis writes. “Some experts think Europe’s economy and employment levels won’t grow in earnest until debt is substantially reduced. As a result, they are, with some reservations, optimistic after the moves taken in Cyprus.”