Throughout the week of “negotiations” between the Eurozone Powers that Be and the government of Cyprus, on how much of Cypriots’ privately-owned bank deposits would be
confiscated looted in exchange for a €10 billion ($13 billion) loan to bail out the heavily indebted country, I was wondering if any of Cypriot elite’s money would be among those “large” (€100,000 or more) bank deposits that would be “levied.”
At the time, I said to FOTM’s joandarc that I very much doubted that the elites would lose their money. I also said that the Cyprus Bank Robbery is setting a terrible precedent and indeed, the contagion already had seeped to other countries (Spain and New Zealand), with the Eurozone chair declaring that the personal bank accounts of other countries can also be raided. I thought out loud that being a small island country, Cyprus probably was chosen by TPTB to be the guinea pig because its small population of a million people are unlikely to mount much of a protest, investigation, or resistance.
Sadly, my cynicism proved to be warranted.
We now have substantial credible evidence that the elite had insider knowledge and so withdrew their money out of Cypriot banks before the the Kabuki “negotiations” had even begun. In the words of Tyler Durden, “the Cyprus deposit confiscation was known by virtually everyone on the ground days and weeks in advance.”
In February, there was a massive surge in Cyprus deposit outflows. Italian media said €4.5 billion ($5.9 billion) left the island in the week before the crisis.
So who had insider knowledge?
The face of corruption: Cypriot president Nikos Anastasiades
1. Cypriot President Nikos Anastasiades:
- Anastasides had warned his close friends to move their money abroad before the financial crisis engulfed the country. The respected Cypriot newspaper Filelftheros made the allegation which was picked up by German media. The Cyprus newspaper did not say how much money was moved abroad but quoted sources saying Anastasiades “knew about the possible closure of the banks” and tipped off close friends who were able to move vast sums abroad.
- Since he warned his buddies, President Anastasiades of course made sure to take care of Number One, and got €21 million of his family’s money out of Cyprus to London.
2. The Russians: Cypriot banks were a favorite of Russian nationals, and even they knew and pulled out their money.
3. 132 companies and individuals withdrew their deposits in the two weeks from March 1 to March 15, and transferred them to banks outside Cyprus. Among them is the company Loutsios & Sons, which transferred €21 million to a UK bank. The company’s owner is alleged to have family ties with President Anastasiadis.
The following images are a list of the 132 companies and individuals. (Note: The first vertical column lists the names of companies and individuals; the 2nd, 3rd and 4th columns record the amounts withdrawn in various currencies; the 5th and last column refers to the date of transfer, i.e., the date when the money withdrawal was made.)
Click image to enlarge
Meanwhile, the latest news is that the Cyprus government’s parliamentary committee tasked with tracking down the leaks, has suspended its probe into who withdrew money early.
Sources: ZeroHedge, April 1, 2013; Sigma.