Here’s one for the thick book of EU lies and hypocritical statements “Deposit guarantees only protect against bankruptcy, not levies“
Guarantees on deposits in the European Union are only there if a bank completely collapses, and does not protect from fiscal steps decided by parliaments, the European Commission said on Tuesday, defending a decision to impose a levy in Cyprus.
What are the Cyprus banks, if not shutdown, collapsed, and bankrupt?
Furthermore, any move by the ECB to withholding liquidity (and that is the threat), would immediately make them bankrupt, were they not bankrupt already.
By extension, if the EC was telling the truth, all Cyprus need do is not pass the “tax”, thereby forcing the banks into bankruptcy the moment the ECB withheld funds, thereby triggering the guarantee.
These idiots obviously have no idea how ridiculous they sound.
To top it off, such statements are likely to fuel further speculation about forced depositor bail-ins in Spain, Portugal, and Italy.
In essence, it proves there really is no deposit guarantee at all.
Mike “Mish” Shedlock