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Tue Mar 26, 2013, 11:34 AM

Laiki bank is OPEN to Britain's customers, but closed in Cyprus.

Looks like only Cyprus bank customers got screwed.

UK Laiki Bank customers told 'it is business as usual'

Laiki Bank customers in the UK face no restrictions on access to their cash and have been told it is "business as usual" at the firm's four British branches, despite an overnight decision to close its Cyprus parent.

Under a bailout plan agreed in the early hours of the morning, Laiki Bank will be wound up and its 4.2bn in deposits of more than 100,000 will be placed in a "bad bank", meaning they could be wiped out entirely.

Cypriot savers with smaller deposits at Laiki will see their accounts transferred to the Bank of Cyprus;
however, in the UK the two banks will remain separate.


http://www.guardian.co.uk/money/2013/mar/25/uk-laiki-bank-customers-business-as-usual

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Reply Laiki bank is OPEN to Britain's customers, but closed in Cyprus. (Original post)
dixiegrrrrl Mar 2013 OP
dipsydoodle Mar 2013 #1
muriel_volestrangler Mar 2013 #2
dipsydoodle Mar 2013 #3
dipsydoodle Mar 2013 #4
dipsydoodle Mar 2013 #5

Response to dixiegrrrrl (Original post)

Tue Mar 26, 2013, 11:46 AM

1. I think the Greeks had already bought the branches there in Greece.

The UK branches are covered by our FSA so would be treated differently - stand alone in their right. It doesn't follow they could transfer funds from Cyprus - only use funds held here in the UK be they in 's or 's.

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Response to dipsydoodle (Reply #1)

Tue Mar 26, 2013, 07:52 PM

2. No, the article says it's the Cypriot scheme that covers the UK Laiki branches

Laiki Bank's UK customers are protected against losses under Cyprus's compensation scheme rather than the UK's Financial Services Compensation Scheme. This protects savings worth up to 100,000 (85,500) on deposit in the UK.


The UK Bank of Cyprus branches are covered by the FSA, though.

Bank of Cyprus UK customers have been told they will be completely unaffected by the bailout, as the bank operates as a separate entity incorporated in the UK.

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Response to muriel_volestrangler (Reply #2)

Tue Mar 26, 2013, 07:58 PM

3. Later news indicates

the UK Laiki branches will be bought by the UK.

I had later picked up on what you posted but forgot to edit my own post.

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Response to dipsydoodle (Reply #3)


Response to muriel_volestrangler (Reply #2)

Tue Mar 26, 2013, 08:33 PM

5. Treasury bids to stop Laiki Bank UK being sucked into Cyprus bailout

Britain is trying to orchestrate a rescue of the UK branches of a troubled Cypriot bank, the chancellor revealed on Tuesday, as he criticised the handling of the bailout for the tiny island at the forefront of the eurozone's debt problems.

With Cyprus battling to open its banks on Thursday for the first time in 12 days, George Osborne revealed that a further 13m (11m) in cash had been flown in for use by troops stationed there.

The Cypriot finance minister, Michalis Sarris, warned of a "significant" haircut on savings accounts holding more than 100,000 which could see at least 40% wiped off deposits. "The exact percentage is not yet decided but it is going to be significant," said Sarris, who had hoped to get Russia to contribute to the 10bn bailout, given the large number of its citizens expected to lose billions of euros on deposit in the island's banks.

Osborne told MPs on the Treasury select committee that the British government was looking at ways to stop the UK arm of Cyprus's second largest bank, Laiki, being "sucked" into the bailout, under which Laiki is to be wound down. Customers with deposits of less than 100,000 will be transferred to the country's largest bank, Bank of Cyprus. "I can say the Treasury is working with the Cypriot authorities on a British solution to the branch of the Cyprus Popular Bank ," he said.

http://www.guardian.co.uk/business/2013/mar/26/treasury-laiki-bank-uk-cyprus-bailout

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