Unlike depositors, these investors could not withdraw their funds on demand whenever bad news surfaced.
And senior bondholders ought to be taking losses (even if only symbolic ones) along with depositors.
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In the European Commission's original proposal for the restructuring rules, there is no depositors preference.
WSJ: Brussels Beat: Another European Divide: Protecting the Depositors
The banking board is worried in case panic spreads to depositors at other Islamic financial institutions.
Wells Fargo deserves a hesitant pat on the back for helping its depositors save time.
F. have created a dangerous precedent by making depositors share in the pain of the bailout.
It blows up when too many of those depositors seek redemption at the same time.
Cyprian depositors are currently lining up at ATM machines to redeem what is rightfully their money.
Depositors with more than 100, 000 euros in the bank are now facing a big loss.
Unlike the typical bank merger, BofA gained depositors in Fleet's turf right after the deal.
If large depositors are hit hard the fear is that the financial industry will be destroyed.
The original plan was to make depositors take the "haircut" - a slice from their savings.
So did neighboring Britain, where some depositors actually moved their savings to Irish banks.
Depositors with more than 100, 000 euros will see some of their savings exchanged for bank shares.
An earlier plan to tax small depositors was vetoed by the Cypriot parliament last week.
Many depositors are pulling money out of major banks and putting it under mattresses.
Large depositors in Cyprus are likely to lose a large percentage of their money.
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Plenty of people have questioned why small depositors had to be hit at all.
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Now it seems further tax increases are inevitable and large depositors will be squeezed again.
Laiki, the worst bank, and its (big) depositors are to suffer the harshest fate.
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So, for example, RBS could repay its Irish subsidiary's depositors and creditors in devalued Irish punts.
Should UK depositors lose money, the government would have to decide whether to compensate them directly.
Depositors in Spain may not feel today that their money is currently in danger.
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The more interesting question, however, is how will depositors react in the rest of the Eurozone.
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In effect, the depositors would take the first loss, and the junior creditors would be protected.
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As part of a bailout deal, Cyprus agreed to seize funds from big depositors.
There is considerable speculation as to why the Cypriot government preferred to see small depositors hit.
FORBES: Links 18 March: After 48 Hours Near No One Likes The Cyprus Bail Out
Understandably many of those depositors would rather convert to cash than absorb the cut.
All insured depositors can then be paid in full as the banks are solvent again.
FORBES: How To Really Bail Out Cyprus: Take It All From The Large Depositors
Both are being restructured and big depositors face losses of as much as 40 percent.
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