What The FATCA Does Cyprus Have To Do With Canada?!?

CBC is reporting:  Four Reasons Tiny Cyprus Matters To Canada.

Under the terms of the Cypriot proposal that emerged Friday evening from Hands Off CyprusEU, any bank account with less than €100,000 in assets would see 6.75 per cent withdrawn as part of the one-time levy. Anything over that level would get an even larger haircut — 9.9 per cent.

 

“Pay attention, please,” Southwest Securities managing director Mark Grant told clients in a recent note. “The European Union and the European Central Bank and the IMF have just advocated the confiscation of private property for their own indulgence.

“Bank accounts are not bonds or stocks or some other form of investments,” Grant said. “It is private property like your house or your car. Germany, France et al came in and said, ‘We want it and we are taking it.’”

Faith that your bank savings are safe is the bedrock of a healthy economy. So a lack of faith in the banking system is the kind of thing that leads to the next reason Canadians ought to be concerned about Cyprus.

All of the reasons given are very valid about why we should all be very concerned about what is happening in Cyprus.

Does the CBC know what is happening in Canada with FATCA?  That should matter to Canadians even more.

Yet, our government and media remain silent.

 

43 thoughts on “What The FATCA Does Cyprus Have To Do With Canada?!?

  1. Can Canada become Cyprus? Not likely say some bankers and others.

    But, CBC reports the recent budget may indicate otherwise.

    “The government proposes to implement a bail-in regime … designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability,” says Finance Minister Jim Flaherty’s March 21 budget, on page 144.

    That would be done, the document says, through the rapid conversion of “certain bank liabilities.”

    Ottawa’s budget document leaves the definition of “certain liabilities” to the reader’s imagination.

    http://www.cbc.ca/news/politics/story/2013/04/02/f-rfa-macdonald-canada-cyprus-banks.html

    Globe and Mail says Ottawa Is Clearing Up The Confusion Over Bank Bail In

    http://www.theglobeandmail.com/report-on-business/ottawa-clears-up-confusion-over-bank-bail-in/article10697667/

    Considering Ottawa’s refusal to clear up confusion around FATCA, I’m not exactly reassured.

    I continue to be astounded and outraged that the Finance Minister will not tell us clearly and that our fundamental legal and constitutional rights will not be violated so our banks can meet the demands of a foreign government.

    That, my friends, may answer the question that began this thread. What The FATCA Does Cyprus Have To Do With Canada?!?

    Tim, do you have any information on this?

  2. Yikes! Two weeks ago, reports were Cyprus losses to depositers would be 6-9.9%. Then it went to 25%. Now it’s 60% for large depositers. If I’m reading this article correctly, those people won’t actually get their money, but rather will get shares in the bank of 37.5% (which means a loss of even more than 60%)

    Am I reading this right? Can this be?

    http://www.theglobeandmail.com/report-on-business/international-business/european-business/large-depositors-at-bank-of-cyprus-face-losses-of-about-60-per-cent/article10586940/

  3. Here’s how one man has been affected by the “official theft” in Cyprus.

    Plans for medical care, buying a home, helping his elderly mother and putting his grandchildren through university are all destroyed.

    http://www.smh.com.au/national/i-went-to-sleep-friday-as-a-rich-man-i-woke-up-a-poor-man-20130328-2gxab.html

    Globe and Mail says what happened in Cyprus can’t happen in Canada. Really?

    http://www.theglobeandmail.com/globe-investor/inside-the-market/relax-canadians-no-risk-of-cyprus-like-attack-on-bank-deposits-here/article10506066/

    The exact same thing may not happen here. Yet, our own government remains mute on whether or not they will give our financial information to a foreign government that can’t manage it’s own finances or protect it’s own residents from identity theft through income tax returns.

    Plus, of course, there is the nightmare in Europe and South American of having bank accounts closed just because of where one was born.

  4. Cyrpus Braces For Bank Openings

    “It’s going to be a very messy situation. Everybody will go there and start shouting for their money.”

    Big depositors at the largest bank could lose as much as 40% on their deposits and those at the second-largest, Cyprus Popular Bank PCL, could lose as much as four-fifths of their uninsured deposits. (Yikes! That’s 80%. They have learned well from IRS OVDI.)

    Capital controls are also planned.

    online.wsj.com/article/SB10001424127887324685104578386352355136728.html

  5. Here’s an article about our current Canadian government and new immigrants.

    One paragraph is true, but chilling:

    The habitual Harper government motif of “we’re welcoming the grateful chosen newcomers and kicking out the freeloading bad guys” is bad enough for the way it sometimes rides roughshod over legal and human-rights complexities. Adding to this with exploitative, non-consensual and misleading camera work makes it all the worse.

    So, should we really believe they give a darn about the privacy, banking, human rights and Charter rights of long time Canadian citizens who came here from somewhere else?

    I wish The Star and other media would report on that. Any luck Tim getting anyone other than Arrow to take it on?

    http://www.thestar.com/opinion/commentary/2013/03/25/canada_to_immigrants_get_ready_for_your_unwanted_closeup.html

  6. Blaze, the other issue is that government bills other than the budget ones simply don’t move that fast in a parliament system(despite what many Americans think) Right now there are many government bills sitting at first reading for weeks. Even more than this they don’t even get a sponsor introduction speech for weeks.

    Look at S-17 right now in the Senate.

    http://www.parl.gc.ca/LegisInfo/BillDetails.aspx?Mode=1&Language=E&billId=6025582&View=4

    The other issue with prorogation is all government bill die even if they made it to second reading. One more issue to I am trying to find an answer too is what is the historical tradition for imposing time allocation(stopping filibusters) on bills solely to implement treaties. As bad as the HarperCons can be on some issues they still stick to some parliamentary conventions.

  7. I am little reluctant to say this in case Shoom and co. read this blog but I think they have screwed in a very critical way in these negotiations. I had already remembered this but had to re-read it last night.

    Under Canadian constitutional convention once a treaty is signed parliament MUST be given 21 sitting days to analyze it before legislation is introduced to implement it in into domestic law. What this means is it is already too LATE for Flaherty to stick FATCA in his spring omnibus budget bill unless he wants to wait until June to introduce it which will cause big problems procedurally(The House Finance committee is already expecting the spring omnibus budget bill to be at second reading by early May). So Flaherty will have to wait until the fall or introduce FATCA implementation as a “standalone” bill and essentially pour gasoline all over himself and light a match.

    Flaherty’s problem is the House of Commons goes on recess for the first two weeks of April and then again during the third week of May which blows a lot of holes in the 21 day cooling of period for implementing new treaties. By my count if Flaherty doesn’t sign this week he can’t introduce any legislation to implement FATCA until May 21st. That is really late. Too late to do anything prior to the fall.

    Two other issues the PMO boys and girls want to do one of two things this fall either call a “snap” election and try to catch Justin Trudeau off guard(ala Chretien and Stock Day) or do Blaze’s favorite act of parliament have ANOTHER prorogation. Unfortunately for the government as fun as they seem to find prorogation you can’t pass any legislation during it.

    On another note I really don’t like the Canadian Senate but if they were to throw a monkey wrench into FATCA I would have a new found respect for the body(despite Mike Duffy forgetting for two month where he lived)

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