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Accusations fly in Bulgaria’s murky bank run

Posted on 07/05/2014 6:36:46 PM PDT by dynachrome

One worker at Bulgaria’s Corporate Commercial Bank knew panic was setting in when she spotted colleagues among the anxious depositors lined up to withdraw cash from the troubled bank.

The alarm came in part because the week before, on June 13, with television news crews filming, Bulgarian state prosecutors had raided a building in Sofia that housed Corpbank offices.

Though both the prosecutors and the bank said the raid did not target Corpbank – the building housed other companies as well – customers soon began to withdraw their savings. Within days, the Central Bank had seized control of the bank, the fourth-biggest lender in Bulgaria, and suspended its operations for three months.

When the run spread to First Investment Bank, a bigger lender, the government pointed the finger at unnamed people for launching what they called a criminal attack on the country’s financial system. Perpetrators were using phone text messages and the internet to spread malicious rumors about Bulgarian banks, the central bank, finance ministry and interior ministry all said.

Much is still unclear. Who was behind the internet rumors and text messages? Why did the government not investigate sooner? How exactly was the feud connected to the run on Corpbank?

(Excerpt) Read more at ...

TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: bankrun; bulgaria
Why target Bulgaria? Dry run for other banks?
1 posted on 07/05/2014 6:36:46 PM PDT by dynachrome
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To: dynachrome

The World is going to Detroit in a handbag...

2 posted on 07/05/2014 6:59:12 PM PDT by hosepipe (This propaganda has been edited to include some fully orbed hyperbole..)
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