The Depositor Haircut
James Meek: Cyprus’s Depositor Haircut, 9 May 2013
“... Before I went to Cyprus, before I met Panikos Demetriou, it seemed to me that ordinary people hadn’t done too badly in the rescue of the Cypriot financial system. Ordinary people with up to 100,000 euros in the two biggest banks, Laiki and Bank of Cyprus, got to keep their money; surely only the rich would suffer when the government confiscated the rest? Surely only rich people – and, in the case of those two banks, rather foolish rich people – would have more than €100,000 lying in a bank account? It was bitter medicine to swallow ... ”