Check out the photo from this Reuters report on the EU/ECB/IMF bailout of the failed Cyprus banks. The convoy of trucks was doing a €1B money drop to the branches of the failed banks. Planes loaded with cash must have been idling on the tarmac in Frankfurt waiting for the govt in Nicosia to sign the bailout papers.
Cyprus reopens banks with restrictions
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There was a lot of EU bashing by commentators over the bailout conditions. Claims that the people were robbed, taxed, etc by the EU. There wasn't much left for the EU to 'rob' as the deposits had been squandered due to very poor investment decisions by the banks' management. Much of the deposits were lent out to the Greek govt, banks and businesses. You can imagine the frantic calls to Cyprus from Greece in past years when the ponzi scheme was going awry,
along the lines ...
Hey buddy, things are getting desperate over here, how about letting us get our hands on some of that fine Russian moolah. What a windfall for Greece.
Also the EU doesn't have a banking union, bank failures are the responsibility of the member govts, not Brussels. Clearly the Cypriot govt was in no position to bailout the insolvent banks, thus throwing itself to the mercy of the troika, then the Russian govt, then back to the troika.
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The other revelation was the ignorance of ordinary Cypriot savers who irrationally though that their deposits were somehow in the bank for safe keeping - not to be lent out or invested.
People should ask their banks what fixed income securities or loans are on the other side of their deposits. If the response is AAA Lehmans Bros Mortgage Bonds or AAA Greek Govt Bonds, then they should disrespect the phony AAA rating and quickly withdraw their money and run for the hills.