EU forcing Cyprus bank deposit haircut
From the story:
Cyprus will impose a levy of 6.75 percent on deposits of less than 100,000 euros — the ceiling for European Union account insurance — and 9.9 percent above that.
So the EU is essentially forcing them confiscate up to 10% of the depositor money in order to provide a bailout. The rumor mill says that the initial request was for as much as a 40% haircut.
The markets should be interesting tomorrow.