Mar 18 2013, 12:37 PM
QUOTE(cherroy @ Mar 18 2013, 11:14 AM)
It is not wise to ask depositor take hair-cut on their deposit.
Depositors are the most innocent people.
Depositor deposit money and let banker to earn big profit, while earn pathetic interest rate or negative real interest rate,
when banks run into trouble time, then depositors bare the loss?
Remember bankers get their big fat bonuses when rosy time, while depositors are not.
Worst to worst, sacking bankers, top management and bank staff, they are getting compensation,
while depositors are not, instead need to take hair-cut.
The one should take hair-cut is bond holder, shareholders, or even top management, depositors should be the last resort.
With today big sell off and sell equities, take cash and deposit in bank, the effort may not useful if depositors need to take hair-cut.
Soon we have "bald" investors across the globe, as everyone need to take "hair-cut".
Bank depositors in Cyprus are not innocent. Some banks have been offering CD (FD in Malaysia) at rates of like 11% per annum (that's for Euro accounts) in a desperate bid to attract deposits. That is clearly more than what the banks themselves can earn using the cash. Depositors therefore already know that the banks are unsustainable and in desperate straits. Those who still put in money are those who are betting that the government won't allow the banks go under or default on their obligations. Even if their accounts take a 10% haircut, the depositors who are earning 11% per year for a 5-year CD are still coming out considerably ahead overall.Depositors are the most innocent people.
Depositor deposit money and let banker to earn big profit, while earn pathetic interest rate or negative real interest rate,
when banks run into trouble time, then depositors bare the loss?
Remember bankers get their big fat bonuses when rosy time, while depositors are not.
Worst to worst, sacking bankers, top management and bank staff, they are getting compensation,
while depositors are not, instead need to take hair-cut.
The one should take hair-cut is bond holder, shareholders, or even top management, depositors should be the last resort.
With today big sell off and sell equities, take cash and deposit in bank, the effort may not useful if depositors need to take hair-cut.
Soon we have "bald" investors across the globe, as everyone need to take "hair-cut".
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