EU and Cyprus agree to take big depositors’ money without calling it a tax
the EU has reached a deal to bail out Cyprus, but unlike the prior proposal, there will be no tax levied on anyone.
Insured deposits under 100,000 Euros will be safe and transferred to a new “good” bank, but the losses will be concentrated on the larger depositors who will be stuck at the “bad” bank. And in a move eerily reminiscent of the maneuvering to get Obamacare passed, the deal is structured to avoid calling it a tax (which would require parliamentary approval).