"Imagine waking up to find out that as much as 40 percent of the money you thought was safely deposited in the bank was seized, without your permission, to bail out a near-bankrupt government," reads Fox News' report on the new Cyprus bailout deal.
That's the Monday morning faced by thousands of Cypriots with deposits of over $130,000 in Cyprus's two main banks - the Bank of Cyprus and Laiki bank. 30-40% of their savings will be seized to pay for the bailout deal, according to the BBC (the percentage hasn't been confirmed yet). Laiki Bank, the country's second largest, will be dissolved, which means significant losses for savers with more than $130,000.
The asset seizure means Cyprus can raise the $7.5 billion needed to secure a $13 billion bailout from the European Union. Without the bailout, Cyprus's banking sector would have collapsed.
Ordinary Cypriots are upset, but so are Russians, who have $31 billion deposited in Cyprus banks, and will have their assets seized. Russian Prime Minister Dmitry Medvedev said the levy on large depositors - many of whom are Russian - was tantamount to "stealing." "What is going on around Cyprus is that they are continuing to plunder loot there." He compared the seizure of deposits to communist seizures of assets in the Soviet Union.
Cyprus banks are issuing no more than 100 euros from ATMs, in hopes of averting a bank run.
Europe's markets have reacted well to the news, and the Euro has bounced back.