So Steve Forbes, rightly, here:
The deal in Cyprus spares insured deposits, those of less than 100,000 euros. But deposits above that threshold at the two largest and most troubled banks stand to lose money.
Capitalism might suggest that these uninsured deposits would be lost when the bank fails.
. . . [Steve] Forbes makes the case that the government has “mucked things up” since the beginning.
He argues the senior depositors who stand to be wiped out should be first in line to get what’s left of the “good assets” at the “bad banks,” as the FDIC does in the U.S.
