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European bank head: More wealth confiscation on the way

- The Washington Times - Tuesday, April 30, 2013

European politicos facing sluggish economic growth will definitely turn to the rich to take their cash, said one banking head, remarking on the potential for repeat in the raid on Cyprus savings.

The Telegraph cited Lars Christensen, head of Saxo Bank, as saying politicians would grab the "easy option" of confiscating wealthy assets, rather than enacting harsh austerity reforms.

"There will be future bail-ins [loss of deposits] and other types of confiscation of wealth in the Eurozone with a doubt," Mr. Christensen said, in The Telegraph. "There's no other realistic way forward if politicians continue to fail to deal with the basic indebtedness problem across Europe."

They won't take the politically damaging route of raising taxes or curbing spending, he said.

"Politicians will take the easier route and take money from the rich," he said, in The Telegraph. "There's no other realistic way forward."

Earlier in the week, Bank of Cyprus customers saw nearly 40 percent of their cash balances siphoned into shares. After, several German economists suggested the implementation of wealth taxes that could be used to pay for any future necessary eurozone bailouts.

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