Cyprus bailout sets 'profound precedents' for Eurozone

A Financial Times leader article (£) has said that the Cyprus bailout has set "profound precedents" for Eurozone banking.

A contemplated deposit raid and actual capital controls will weigh on the European economy.

Against that, some healthy precedents are set by the deal. Broke banks can be resolved and not kept alive by the taxpayers of their own or other countries.

The hierarchy of claims will be respected: the bail-in of senior bonds is a big improvement on earlier “rescues”.

The quiescence of markets prove they can tell solvent debtors from insolvent ones.

– Financial Times

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UK customers escape bank levy

Around 15,000 savers in the UK arm of stricken Cypriot bank Laiki will see their deposits protected under British rules and will escape the Cyprus banking levy.