Quote:
Originally Posted by martyh
So why all of a sudden has raiding peoples bank accounts become acceptable? .Why wasn't this policy used with Greece,Italy or indeed the UK ?
and will it be considered for french deposits should they need a bailout?
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Because it was harder to see how Cyprus could come up with their share of the bailout otherwise. The size of their banking system dwarfed their GDP. No one is pretending this is an ideal situation, or even a good outcome, but it's difficult to see what alternatives were on the table. This was the case of choosing the least worse option.
For these people to access their savings would mean a bailout anyway. There was no option for people to reject the bailout and not lose money since the banks were about go under.