Betray Your Bank Before Your Bank Betrays You

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http://www.bloomberg.com/news/2013-03-28/betray-your-bank-before-your-bank-betrays-you.html

What’s a Slovenian with several hundred thousand euros in the bank supposed to do? Spread it out among at least a few different banks, that’s what. Or move the money out of the country, while it’s still possible.

Imagine what must be on the minds of any savvy depositors still left at Nova Kreditna Banka Maribor d.d., now 79 percent- owned by Slovenia’s government. It was one of only four lenders in October that failed the European Banking Authority’s latest capital-adequacy test, a ritual best known for how lax its standards are. One that flunked was Bank of Cyprus Pcl, where uninsured depositors face 40 percent losses as part of the country’s bailout terms. Another was Cyprus Popular Bank Pcl, also known as Laiki Bank, where uninsured deposits will fare far worse and the bank is being shut.

Cypriot banks’ customers were complacent after uninsured deposits went unscathed in Ireland, Greece, Spain and Portugal, the first euro-area countries to seek international rescues. Slovenians won’t have that excuse should their country be next.

The former Yugoslav republic needs about 3 billion euros ($3.8 billion) of funding this year, while its struggling banks need 1 billion euros of fresh capital, the International Monetary Fund said last week. Slovenia’s central bank this week urged the country’s new government to quickly carry out a plan to recapitalize ailing lenders. It’s a familiar pattern.

[MineralMan]

1. Well, any Slovenian with that amount of money in the bank

is part of the 1% in Slovenia. I'm sure he or she is already dealing with the money. I'm more concerned with the average Slovenian.

[darkangel218]

2. Most slovenians dont even have a checking account.

I hail from Europe so I know.

[onethatcares]

3. was this entire european bank fiasco created

by people that took out mortgages that were over their heads or by the banks playing fast and loose with depositors money?

And, will the banks be made whole before the citizens will?

[dipsydoodle]

4. Crosspost from the Economy Group

Cyprus: That wasn't actually a bailout, at least not of Cyprus, anyway... http://www.democraticunderground.com/111633077

It merits attention because if true its quite horrific. You might need to search some of the acronyms used for full understanding.