EU, ECB Say Cypriot Bank Levy Is Legal - Germany's Schaeuble

[Purveyor]

By Andreas Kissler

BERLIN--German Finance Minister Wolfgang Schaeuble said Monday the European Central Bank and the European Commission assured European finance ministers that a levy on bank deposits in Cypriot banks doesn't violate European deposit insurance rules.

Mr. Schaeuble told reporters that he had "urgently asked whether existing European deposit insurance...would stand in the way in any fashion," adding "the European Commission, bindingly, as well as the ECB confirmed that, no, it doesn't violate European deposit insurance because it is a tax and deposit insurance does not refer to taxes and levies."

The German finance minister added that any changes to the structure of the Cypriot bailout package was "a matter for the Cypriot authorities," adding that the difficulties the Cypriot government is having persuading all political parties in the country to back the deal is "not surprising."

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http://online.wsj.com/article/BT-CO-20130318-709360.html

[jeff47]

1. Sure it is.

A law in the US seizing the contents of all bank accounts would also be legal.

That doesn't mean it's a good idea.

[badtoworse]

2. "...;nor shall private property be taken for public use, without just compensation. " - nt

[jeff47]

3. Call it a tax and it's fine. (nt)

[malaise]

4. Sure every is legal these days

and representative governments represent the bankers not the people

[reformist2]

5. It's a tax, but it's totally arbitrary and therefore unjust.

Why should depositors, of all people, have to pay for the sins of the people that were supposed to be keeping that money safe?