Greek banks see outflows pickup as election nears - bankers

Reuters ^ | 6/13/12 | George Georgiopoulos and Lefteris Papadimas

[Kartographer]

Greek banks have seen a marked increase in the pace of bank withdrawals as a June 17 general election nears and fears grow that Greece could be forced out of the euro, senior bankers said on Wednesday.

Combined daily deposit outflows from the major Greek banks have reached 500-800 million euros over the past few days, with the pace picking up as the election draws closer and rising noticeably on Tuesday, two bankers said.

Deposit outflows at smaller and medium sized banks were running at 10-30 million euros.

"This includes cash withdrawals, wire transfers and investments into money market funds, German Bunds, U.S. Treasuries and EIB bonds," said one banker, who spoke on condition of anonymity.

[Kartographer]

[KarlInOhio]

This includes cash withdrawals, wire transfers and investments into money market funds, German Bunds, U.S. Treasuries and EIB bonds

EIB bonds? Rush Limbaugh is selling his own Excellence In Broadcasting bonds? With talent on loan from God, and financing on loan from Greeks fleeing their banks.

More seriously, why would anyone keep any money in a Greek bank now other than what they will need for the next few days of checks they are mailing? Every weekend has the risk of being declared a bank holiday when they shut down the system and switch back to drachmas.

[Buckeye McFrog]

EIB bonds? Rush Limbaugh is selling his own Excellence In Broadcasting bonds?

Limbaugh has a higher net worth than Greece at this stage...