(4-2-13) In the Cyprus situation, "confiscation" is not really the right word to use since it assumes that there is something left to confiscate. The depositors' money is gone. Why? Because the banks of Cyprus used it to buy worthless Greek bonds. This is just another example of the cascading Euro-sodomy effect.
Since Cyprus was already in such a fiscally deteriorated position by the time it asked for a bailout and the ECB had already put the arm on the Cypriot banks to buy worthless Greek debt, the ECB had no choice but to bail them out.
This concept got floated for a while that Germany and France were prepared to make an example out of Cyprus and just let Cyprus go -- but that was nonsense and they were never going to do that.
Why? Because had they done that, it would have started a cascading chain of defaults in the rest of the weakened peripheral Euro-states which they could not have controlled. Thus they had no choice but to proffer a bailout.
However they would proffer a bailout on pretty stiff terms because the ECB (European Central Bank) simply can't keep expanding its balance sheet endlessly to buy sovereign debt that is effectively failed.