Wednesday, March 27, 2013
Cyprus: Alarms, But No Surprises
Wall Street Journal
March 27, 2013
Some in Cyprus and elsewhere are acting as though the botched bailout was a complete shock, an unforeseen fiasco that took everyone by surprise. In fact there were plenty of warning signs, and we at WSJ, as well as our colleagues at the Financial Times and elsewhere, did our best to lay them out.
The bailing in of uninsured depositors in the country’s ailing banks first came up in January in conversations with sources. After much consideration and meticulous sourcing, we ran a story from Davos, Switzerland, on January 24.
Our bureau chief, Stephen Fidler, interviewed Olli Rehn, the European Commissioner for economics and monetary affairs, at the World Economic Forum. Mr. Rehn said the rescue would require a major restructuring of the country’s banking system that could include the winding down or merging of some banks.