Cyprus deal exposes deep rifts

Nick Bullman | CheckRisk | 27 March 2013

A longer term view of what the Cypriot deal means for the EU reveals it is not as good as it looks.

Firstly, Cyprus is not out of the woods yet. As an offshore bank haven, it is destroyed. The moment the banks allow capital outflows, they will be emptied. Banking trust once gone is gone for a long time, if not for good. The Cypriot economy is based on banking and it is fantasy to think that by ring fencing two banks, the rest of the banking sector will not be included in the oppro...