Indian givers in Cyprus
March 26, 2013 § 102 Comments
I wonder how people’s attitudes would change if, instead of Cyprus, we were dealing with an Indian tribe that had borrowed far more US dollars than it could afford and was operating its own internal banks on the reservation (its sovereign territory) that the Mob was using to launder money and evade taxes.
I’d have a strong inclination not to offer any additional financing at all. But if I was going to offer additional financing I’d definitely have very strict terms. Every big player would have to take a haircut on the deal, including those with an equity stake (whatever it is labeled: labeling it “deposits” doesn’t change its fundamental nature) in bank operations.
They would of course be free to take it or leave it.