Is it ever right for Banks to take customers' savings?

1. 69

   Mazzy Boleroposted 11 years ago

   Is it ever right for Banks to take customers' savings?
   
   Cyprus is to freeze all accounts over 100K Euros in their second-largest bank and take money to pay off the country's debts - potentially 100% of customers' money. Cypriot banks have many rich Russian customers - but many ordinary Cypriots, plus Brits who have retired there, could lose every penny of their hard-earned savings. Cyprus was forced to agree to raid bank accounts to get a bail-out from the Eurozone. Was Germany right to insist on it?
   
   (Image by gabreleiros under Creative Commons 3.0 License)
   
   

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2. 37

   wqaindiaposted 11 years ago

   If any country decides of its own to dig the account of bank customers to check evasion of tax then it is a welcome step but if a country (Cyprus) is forced to agree to raid bank accounts to get a bail-out from the Euro zone then it is very bad indication on the part of the rich and wealthy nations who provide credit to developing countries through international funding institutions like IMF. Powerful Individuals, communities and nations dictate their terms and it is not a healthy sign for the world as a whole. While the world community needs to isolate between willful defaulters the world bank and international funding institutions must come out with transparent terms and condition along with details of debts as the public has the right to know their per capita debt burden.

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   1. 69

      Mazzy Boleroposted 11 years agoin reply to this

      I agree. Tax evasion and money laundering should be stopped - but stealing honest people's life savings can't be justified on the grounds that some accounts are suspect.  It's a poor excuse. Germany is wielding a big stick and will wield it more.

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3. 79

   Seafarer Mamaposted 11 years ago

   It is absolutely not okay for banks to rob their customers! I am sure American banks would follow suit if they knew that this tactic worked.
   
   No, Germany should not insist on this if they do not do it first.  Often, people save to give future generations money for education, so their money does not end with them...and the potential recipients need it. I think that banks are supposed to be serving us, not robbing us!  If it is a tax evasion issue, then those taxes should be recovered without taking money from responsible citizens who need to keep their savings for retirement and to share with their families.

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   1. 69

      Mazzy Boleroposted 11 years agoin reply to this

      You're right. Why should people work and save all their lives if the bank can just grab every penny?  If the politicians targeted Russian gangsters, fair enough, but they are not doing that.  It's like monopoly money to them.

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4. 60

   duffsmomposted 11 years ago

   No, it is never right and I fear it is setting a precedent that will endanger the global economy.  As outrageous as we think this is, we should not be naive enough to think it can't happen to us.  Who would have ever thought some of the things that are going on now would ever happen?

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   1. 69

      Mazzy Boleroposted 11 years agoin reply to this

      The EU has bailed out Greece twice, to the tune of hundreds of billions of Euros, without taking a penny from depositors, and most of the "toxic debt" of Cyprus is Greek debt written down by the EU!  People did not expect this.

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5. 81

   Seeker7posted 11 years ago

   No it isn't right at all. The people who have saved their hard earned cash are not responsible for the predicament that Cyprus is in. Once again, the ordinary people will pay the price for government and big business greed! The most important thing is that Germany shouldn't have the right to insist on such blatant theft of peoples' money - its a dangerous and totally unfair stipulation to make.

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   1. 69

      Mazzy Boleroposted 11 years agoin reply to this

      The irony is that Cyprus turned down the initial proposal to take 9.9% of all accounts over 100K Euros, and instead is taking potentially 100%  from Laiki customers and 30% from Bank of Cyprus. Not exactly a fairer option!

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6. 80

   kallini2010posted 11 years ago

   I don't think it could ever be justified.  I remember that my teacher (only one of so many) said: "you have to earn trust".
   
   I can't say I am particularly distrustful, but I am not surprised when a government robs its citizens - I am from Russia, after all.
   
   We even have a saying - you could never be sure that you'll never go broke or go to jail (meaning for nothing, no crimes committed).
   
   It is the same old expropriation (read "robbery) that was done after the Revolution.
   
   There is no question of fairness here.
   
   Funny enough, I just asked the question about fairness - how soon children learn that life if not fair.  I was "inspired" by the speech that Bill Gates (no hero of mine) gave to the high school students.
   
   Out of eleven lessons, the first one went:
   
   "Life is not fair. Get used to it."
   
   I would assume that people would support my opinion that children are smart, but they tell me to let children be children and not to discuss the fairness of life.
   
   The problem lies in both parties - the one who violates the rights and those who let it happen.
   
   I hope the situation will be resolved with the least pain inflicted.

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   1. 69

      Mazzy Boleroposted 11 years agoin reply to this

      A wise answer, kallini2010.  "Those who let it happen" is an important phrase.  The rest of the EU and the world are letting it happen, and it will not end here.

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