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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

A bailout with a side of bank-run

Good morning, due to new commitments Death Star Economics gets up early now.

After Cyprus exploded in such an unexpected fashion on Monday, followed by the revision of the bank account levy proposal assigning a 15% tax on deposits above €500,000 and a closing of all banks until Thursday [making ZeroHedge wonder which Thursday…], which was then followed by the Cypriot parliament rejecting the proposal altogether. In the background, Russia has appeared on a white horse, sending Gazprom to offer to bail the country out for nothing butaccess to its natural resources [and money laundering facilities]. Cyprus’ Finance Minister is currently in Moscow.

In the background, the EU reached a provisional deal on the ECB’s role as single bank supervisor in the Union. Once in place, the reformed central bank could bail out European banks directly. read article

It’s budget day in the UK today, and once again it won’t be pretty. Expected are 2% spendingcuts, totalling £2.5bn. Also, inflation sits at 2.8% in February and in-coming Bank of England Governor Mark Carney wants to focus on more indicators than just getting that number down. There is the possibility that the budget will steer the BoE bank onto the 2% inflation target courseread article

BlackRock, the largest asset manager in the world, is set to restructure the firm and fire 300 people, about 3% of its global workforce. read article

In regulatory news, Citigroup has to pay $730m in settlement fees for misleading investors in mortgage-related (read “-backed”) securities between 2006 and 2008. Crisis-era legal case #765.read article

UBS decided to leave the panel that sets the Euribor benchmark rate. Previously, Rabobank, Raiffeisen Bank, Bayrische Landesbank and Citi had left the panel. read article

Have a good day.

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One Response

  1. […] Anastasiades announced that the country’s banks are going to stay closed until Thursday (again: which Thursday…) and that capital controls will be put in place until it all blows over. read […]

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