Yesterday morning, I wrote a comprehensive post on the Cyprus bank deposit bail-in. Go there for the details of the bailout package. I want to expand on that here today with some thoughts on the politics.
The latest news out of Cyprus is that the Cyrpiot government has delayed the vote on a bank bailout and savers tax by one day to Monday and that it has also extended the bank holiday from just Monday to Tuesday as well. Reports are that the votes for a clear approval are not there yet. The central bank has asked banks to freeze all money orders and transfers temporarily (link in Greek). In my view, the news flow suggests that the bailout in Cyprus is not going well and I fear there will be severe negative consequences for the euro zone's economy and the stability of its banking sector as ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.