Skip to comments.Greeks withdraw $894 million in a day: Is this beginning of a run on banks?
Posted on 05/16/2012 9:18:05 AM PDT by SeekAndFind
The country's economy is in a meltdown, raising fears that Greece will exit the Euro Zone completely and default on its huge pile of debt.
Political leaders in Athens were due to discuss an emergency government Wednesday to deal with a possible run on banks as it emerged Greeks withdrew almost $900 million in a single day, fearing their country could crash out of the euro currency by the end of the week.
An interim government would take the country through to new elections on June 17, triggered by the collapse on Tuesday of talks to form a coalition between winners of the inconclusive May 6 election.
Greeks are withdrawing euros from banks, apparently afraid of the prospect of rapid devaluation if the country leaves the European single currency and returns to the drachma.
President Karolos Papoulias warned of great fear that could develop into a panic, the minutes of Papoulias' negotiations with political leaders showed, according to Reuters.
The minutes also reveal Papoulias was warned by George Provopoulos, head of the countrys central bank, that savers withdrew at least 700 million euros ($894 million) on Monday, Reuters said.
"Withdrawals and outflows by 4:00 p.m. when I called him exceeded 600 million euros and reached 700 million euros," the president said according to the minutes of the meeting. "He expects total outflows of about 800 million euros."
Several banking sources told Reuters similar amounts had also been withdrawn on Tuesday. Nevertheless, there was no sign of panic or queues at bank branches in Athens on Wednesday. Bankers dismissed suggestions that a bank run was looming.
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I have been thinking of drawing my money out of the bank.
Do I think American banks are going out of business?
I am just pissed that they are paying me .10 % interest on my savings. I don’t want them usng my money and paying me nothing for the use of it. I won’t bury it in the backyard, but for what they are giving me for it’s use, it might as well be there.
Then I read that Obamacare will give the Government electronic access to my accounts , and why take the chance that Obama might just relieve me of it.
Uh-oh, if they keep that pace, the printing presses will wear out!
RE: I am just pissed that they are paying me .10 % interest on my savings.
How soon do you need to get your money?
Do you have the financial resources to keep a portion of your money invested for at least a year?
RE: Uh-oh, if they keep that pace, the printing presses will wear out!
The problem is the Greeks CAN’T PRINT MONEY.
They could if they were on their own currency. They’re not. Everything is tied to the ECB which is controlled by the tightwad Germans.
The problem is they aren't using your money. Dodd-Frank and a multiplicity of other regulations have made it nigh impossible for banks to lend money. It creates a surplus of savings and bank reserves; hence the low interest rates.
Right now banks are sitting on vast reserves they can't lend out. That's the only reason we haven't seen runaway inflation from the various rounds of quantitative easing. Most of that extra ‘money’ is sitting in the banking system unused.
Who would still have money in a Greek bank at this late stage? Mine would have been in a mattress a year ago.