http://www.nytimes.com/...
Exactly as per recent comments of mine - I was just doing common sense. It's too late for Cyprus - the trust is gone. Small depositors are "insured" until the whim of the country says they aren't. Which could be next week or next month.
Anyone - ANYONE - would be a fool to keep their money in a Cypriot bank at this point.
NICOSIA, Cyprus — With her wedding day three months away, Despina Charalambous is desperate to gain access to her savings, which have been frozen at the Bank of Cyprus for more than a week. She plans to take out all her money once the banks reopen, even though the new bailout plan for her country supposedly guarantees the safety of her deposits.
“I have lost my trust in Bank of Cyprus and banks in general,” Ms. Charalambous, 33, a biologist, said. She was still bitter that just last week the country’s president was ready to skim money even from small savers like her to help secure a 10 billion euro, or $12.9 billion, lifeline to the nation’s outsize banking industry.
How the hell could they even HINT at confiscating parts of all deposits without a complete loss of trust?