Bank Deposits Confiscation: The “Cyprus Experiment” and the Launch of a Global Trend
By Valentin Katasonov
Global Research
June 12, 2013
In March 2013 the events in Cyprus shock the world to hit the radar screen of world media.
The bank deposits were confiscated.
Some tried to make it look as an emergency measure, an exclusion from the rules that define banking activities and the functioning of market economy.
But there is a solid ground to believe the confiscations are to become a routine feature of everyday life.
Deposit confiscation: a well-planned impromptu
The events were normally painted as some kind of poorly planned ad libbed decision on the part of the European Union carried out by Cyprus government. It was a one-time action, a step taken under the pressure of circumstances. We view it differently, in our opinion it was a well prepared concerted action approved at top level including actors outside Europe. The very operation should be defined as a precedent, an experiment or a test. Or, to be exact, the test to launch a global trend and the confiscation spread around the world.
As far back as in 2009 – 2010, when the ways out of the global crisis were discussed at international summits (G7, G8, G20 and other structures), non-standard ways of banks rescue in contingency were part of the agenda, including the schemes of bailing them out at the expense of account holders. For instance, things like introducing cuts on deposits, full or partial, or freezing accounts (either till a bank has fully recovered or by compulsive conversion into shares (authorized capital stock).
Even after the first wave of the financial crisis died down, the ideas never stopped hitting the agenda of world financial agencies (the Bank for International Settlements (BIS), the International Monetary Fund (IMF), the Financial Stability Oversight Council – FSOC), central banks, banking and financial oversight agencies of the «gold billion» countries.
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