Cyprus Bailout Hurts Large Depositors: 5 Things to Know for the Week

Simon Zhen

Updated on Wed Feb 25, 2015

With a financial collapse looming, Cyprus has announced a bailout agreement that thwarts fears of meltdown in the eurozone, which could have affected the entire global economy. But, the bailout doesn’t come without hefty financial losses, especially for large depositors.

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  • The days of dodging sales tax while shopping online may be coming to a close. The U.S. Senate has voted in favor of the Marketplace Fairness Act of 2013, which may result in sales taxes are more purchase made on the Internet.
  • Starting Monday, M&T Bank joins a host of large U.S. banks that have changed the order in which debit transactions are processed. According to new deposit agreements, M&T Bank will begin to post transactions either in real-time or from smallest to largest amounts (varies depending on type of debit transaction). This change in policy is expected to reduce the number of overdraft incidences for customers.
  • McAfee, the well-known computer security firm, warns against a new piece of malware that is designed to skim payment data from card readers at the point of sale. The malware extract data from cards that have magnetic strips — not those with EMV chip. But, cybercriminals may be able to crack that soon.
  • Cyprus, which has been the talk of the financial sector, has reached a bailout deal that entails shutting down its second-largest bank, Laiki Bank, and causing significant financial losses for uninsured depositors. Bondholders of Laiki Bank will be left with nothing while thousands of employees lose their jobs. The country is receiving 10 billion euros as part of the bailout plan.
  • The IRS is offering late-payment penalty relief for taxpayers that have been inconvenienced when certain forms were not available in January due to the late enactment of the American Taxpayer Relief Act. Qualifying tax forms include those that claim depreciation deductions and various business credits.

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