Looks like bank depositors in Cyprus are going to be getting a haircut. In exchange for a significant bailout of their banking infrastructure, the ECB is requiring that a percentage of deposited funds be taken from every account held in Cyprus and used to partially fund the bailout.
On the up side, there’s this: “Depositors will get bank stock equal to whatever they lose from the tax”.
That’s a better deal than we got for the government bank bailouts here. AIG got billions and the taxpayers who footed the bill got a stick in the eye.