Europe Grabs $13 Billion from Bank Depositors, Freezes Accounts

In what is effectively outright theft, Euro-area finance ministers have imposed an unprecedented levy on Cyprus bank deposits as officials unveiled a 10 billion-euro ($13 billion) rescue plan for the country, the fifth since Europe's debt crisis broke out in 2009. Cyprus will impose a levy of 6.75 percent on deposits of less than 100,000 euros -- and 9.9 percent above that. The measures will raise 5.8 billion euros, in addition to emergency loans, Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers, told reporters today after 10 hours of talks in Brussels. Can Spanish and Italian banks be far behind? Details here. and possible consequences here.