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Technocrats in Cyprus Steal Customer Deposits & How It May Effect You

Susanne Posel
Occupy Corporatism
March 18, 2013





Over the weekend, in Cyprus, depositors are being forced to hand over a portion to the tune of 10% of their deposits to help pay for the $13 billion bailout packaged by European partners and the International Monetary Fund (IMF).

This has caused a run on ATMs across the nation as residents attempt to drain their bank accounts.

The IMF released a statement on March16th wherein Christine Lagarde, managing director of the IMF said: “I welcome the agreement reached today to address Cyprus’ economic challenges. The IMF has always said that we would support a solution that is sustainable, that is fully financed, and that appropriately allocates the burden sharing. I believe that the agreed package meets these three objectives. On this basis, I intend to make a recommendation to our Executive Board for the IMF to contribute to the financing of the package.”

The agreement Lagarde referred to is an “adjustment program” of the Cypriot financial system allegedly enforced to encourage “sustainable and balanced growth” of the nation.

In order to deter money laundering through Cyprus banks, an audit would be implemented. Financial assistance by the IMF and CBE would be given in exchange for a tax to be passed onto the people of Cyprus as the first phase of the scheme. In addition, “further measures concern the increase of the withholding tax on capital income, a restructuring and recapitalization of banks, an increase of the statutory corporate income tax rate and a bail-in of junior bondholders.”

An anonymous source claims correctly that the deal between the Cyprus government and the IMF was struck just ahead of the announcement for taxing customer deposits in banks.

President Nicos Anastasisades asserted that the government had no other option; with regard to accepting the bailout. He claimed that his country was in a state-of-emergency.

The costs were then turned over to the citizens in the form of a tax, or a levy, to recoup funds. The central bankers are currently in the process of draining customer accounts of every citizen in Cyprus.

Anastasisades claims the European Central Bank (ECB) was threatening to halt much needed money which would have crippled Cyprus banks further and confirmed the expected financial collapse.

According to Anastasisades, this levy will rescue the banking institutions. The decision to allocate private banking deposits from customer accounts was made to ensure that billions of dollars would be salvaged. The government estimates that due to the deposit levy 5.8 Euros will be acquired from the people of Cyprus.
Customers with less than 100,000 Euros will be charged a one-time tax of 6.75% while those with more money in their account will be charged 9.9% until the bailout money is recouped.

Cypriot Finance Minister Michalis Sarris stated: “This decision should not be compared to the ideal, but to the very real possibility that much more money could have been lost in bankruptcy of the banking system or indeed of the country.”

Sarris added that steps “have [been] taken” to stifle “electronic transfers” that cannot be made before the banks reopen during the business week.

In response, citizens began forming lines at ATM machines to remove their money from bank accounts. This caused many ATM machines to be left dry as citizens claimed their cash before the banking elite stole it.

Customers were restricted from removing more than 400 Euros from ATMs and many banks closed their doors to avoid dealing with the enraged public.

Restrictions on the amount customers could withdraw from their accounts began to be implemented as many banking customer also attempted to move their money out of the country.

The message to Cypriots is that they would do well to take their money out of the bank before the technocrats. The government, who has strong ties to Briton, had 3,000 British service men and women station on Cyprus in anticipation of problems created by the deposit tax.

George Osborne committed 60,000 British military to guard European banking elite in Cyprus from the citizens should be situation become volatile.

Jacob Funk Kirkegaard, member of the Peterson Institute for International Economics explains that: “There is a general political sentiment that it is not acceptable to be bailing out a country, and thereby putting European taxpayers’ money at risk, to basically protect Russian depositors in Cypriot banks.”

What is happening in Cyprus could be applied to the US with slight modifications.

Because of the ruling on August 9th of 2012 in the 7th Circuit Court of Appeals (CCA) that Bank of New York Melon (BNYM) can be moved to first in line of creditors over the customers that had their funds stolen by Sentinel Management Group (SMG) a bank can use customer funds to pay off debts if they are insolvent, under duress and in bankruptcy.

Since the ruling gives banks the right to co-mingle customer funds with their own, no crime can be committed for the use of customer deposited monies.

According to Walker Todd, former lawyer for the Federal Reserve Bank of New York and Cleveland: “Basically, there is a new 7th Circuit opinion saying that there is no reason to impose a constructive trust on a lender’s takings of customers’ funds from client commodity firms that were used (inappropriately) to secure the firms’ borrowings, as long as the lender can say that it did not know WITH CERTAINTY that customers’ funds were being repledged. Negligence and misappropriation (vs. knowing criminal intent) are now a sufficient excuse for letting the lender keep the money and go to the head of the line for distributions in bankruptcies of the client commodity firms.”

When a customer deposits money into a bank, the bank essentially issues a promise to have those funds available when the customer returns to withdraw the deposited amount. When the same customer withdraws funds from their account (whether checking or savings) the customer assumes that the bank has enough funds to cover their withdrawal; including the presumption that their monies are separate from the bank’s assets.

Now, those funds are up for grabs by the bank at their discretion without explanation to the customer – nor is the bank obligated to recoup the customer should they “lose” those funds due to bad loans, bankruptcy or stock market loss.

Our financial institutions have been planning for a financial collapse wherein the US government will not offer assistance. The resolution plans required by the Federal Reserve Bank, described schemes to have the major domestic banks remain afloat by selling off assets, finding alternative sources of funding, reducing risky measures that make a quick buck. These strategies were to be perfected with “no assumption of extraordinary support from the public sector.”

The mega-banks, through Wall Street, are also acquiring firearms, ammunition and control over private mercenary corporations like DynCorp and ‘Blackwater” as authorized by the Department of Defense (DoD) directive 3025.18.

Take a tip from Cyprus. Now is the time to close your bank account.

Quoted from Madam X

Put your money in the mattress. People who vote for Obama, Cuomo, and Bloomberg have signaled that they are ripe for plucking. No wonder they want to disarm the citizenry. They know what is coming. The funny thing is, we see it happening right in front of us, and anybody who points it out is an alarmist kook.

Quoted Text

James Ives, listed as the president of the Greater Fort Bend County Tea Party,
confirmed to The Texas Tribune on Monday that he had made a promotional video for
the American Fascist Party and advocated tea party principles on a
Fascist Party message board.
“It will be our greatest challenge, and our sweetest victory, to finally surpass this dark
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that is our Fascist Faith, our Fascist Truth,” Ives wrote.