More on Cyprus. Looks like Russian money managed to escape.
Zerohedge is reporting some interesting developments in the Cyprus fiasco. Seems like a lot of Russian money found a back-door escape hatch during the lock down. If true, this development could explode in the face of the ECB. Being short gold and silver (or long the Euro) is not where I would want to be right now.
When we reported yesterday that over the past week, the Russian depositors in Cypriot banks had managed to find loopholes through which to pull out billions in supposedly halted deposits (courtesy of bank shutdowns and capital controls) some, accurately, balked: if that were the case the Cyprus Centeral Bank would need a proportionate increase in emergency funding from the ECB (in the form of ELA) to make up for the deposit outflows. Which is why moments ago Welt reported precisely what we had been expecting to read all morning: the Cyprus Central Bank is about to demand even more cash from the ECB to plug the holes left from the stealthy Russian outflows.
•CYPRUS CENTRAL BANK PLANS EXPANDING EMERGENCY CREDIT: WELT
•CYPRUS PLANS EXPANDING EMERGENCY CREDIT BY EU2.5B-EU3B: WELT
Remember: this is just a feeler by the Cypriot Bank in direction Frankfurt - the last thing Cyprus wants is to expose just how big the full liquidity hole is resulting from the Russian deposit outflows. We expect when all is said and done, the full incremental bailout needs to rise in the double digits.
" Being short gold and silver (or long the Euro) is not where I would want to be right now."
I KNOW! Being short the only things that aren't rallying is the LAST place in the markets whee I would wanna be short. I mean, we would absolutely HATE to be like those pesky Anti metal bugs on the right side of the trade! We'd love to be like you--except we cannot force ourselves to do so yet as the lid on PM prices keeps pressuring down atop bulls' heads--an avid, diehard long on stuff that's been making progressively lower highs for two years running and now is doing the spit-choke-and-puke kind of Grinding non-action very, very similar to how SVM itself was not performing just before it...
You clearly cannot see the forest despite the trees.
The European Central Bank (ECB) presumed the existence of uninsured accounts (i.e., 100,000 €) to reach its deal with the Cyprus government. The uninsured accounts were supposed bear all losses, preserving accounts below 100,000 €. If deposits in the uninsured accounts have vanished, all that is left to bear bank losses are the insured accounts (i.e.,