Originally Posted by Rohirrim
Just out of curiosity, since I'm not a banker, but if the banks collapsed and the Cyprus government collapsed, wouldn't the depositors lose all of their savings?
You're hitting on the reality of this bailout. That is an 'offshore bank' and as anyone offshore understands, there is no insurance if a bank collapses.
This notion that depositors are being 'taxed' is absurd. If that were a US bank, no accounts above the FDIC insured amount would be covered and those depositors would likely lose all.
Because Cyprus is in the EuroZone, they are getting a bailout, and a damn generous one for the depositors. This might be the first time an offshore bank has been bailed out, the Russians should be on their knees gratefully accepting the 60% they will walk away with.