Independent voices from the TWT Communities
Money that's been trapped in Cyprus banks for the last two weeks could begin to cross the Atlantic and flood the American banking system starting Thursday when banks on the European island reopen, one banking expert predicts.
Money that's been trapped in Cyprus banks for the last two weeks could begin to cross the Atlantic and flood the American banking system starting Thursday when banks on the European island reopen, one banking expert predicts.
The U.S. banking industry enjoyed its second-most profitable year in history in 2012, according to a new report from the Federal Deposit Insurance Corp., but that may not be enough to save the jobs of thousands of bankers.
Vilified as a chief cause of the global financial crisis three years ago, America's banks appear to be quietly on the mend.
Global policymakers insist that the Federal Reserve's failure to implement new banking rules on time is nothing to worry about, but critics of the international plan to strengthen the financial system say this is evidence it's falling apart.
"You really think they'd do that in the United States?" he asked. "What kind of crazy politician is going to do that to the United States?"
In the long run, however, Cyprus is setting the stage for Europeans to flee eurozone banks in favor of their counterparts in the U.S., says Dick Bove, a banking analyst at Rafferty Capital Markets.
