HERE … Cypriots rush to cashpoints to withdraw money

The decision, announced on Saturday morning, stunned Cypriots and caused a run on cashpoints, most of which were depleted within hours. Electronic transfers were stopped.

The move to take a percentage of deposits, which could raise almost 6 billion euros, must be ratified by parliament, where no party has a majority. If it fails to do so, President Nicos Anastasiades has warned, Cyprus’s two largest banks will collapse.

One bank, the Cyprus Popular Bank, could have its emergency liquidity assistance (ELA) funding from the European Central Bank cut by March 21.

UPDATE: Cyprus banks collapse – 03/16/13

For any of you who may be missing this weekend’s European news (and I suspect you have given the U.S. media’s scant coverage of it) Cyprus’ banks have collapsed. Euro Ministers and the IMF have come to the rescue in the face of depositor runs with an imposed liquidity “solution” whereby small depositors will lose 6.75% of their savings and depositors with over 100,000 Euro’s will forfeit 9.9% (According to reports, Germany and the IMF had initially demanded a 40% across-the-board haircut). There will likely be a forced bank capital restructuring as well and bondholders will incur losses.