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Is There A European Bank Run Under Way?

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http://www.dailymail.co.uk/news/article-2023302/France-Italy-stand-bail-biggest-banks-euro-crisis-worsens.html

Yet talk of another bank bailout, is their a bank run under way?

There's been no queues seen in Europe yet, I've not read any reports of any but the internet means that there doesn't need to be.

Berlusconi certainly put the kiss of death on the Italian banks by giving them the thumbs up and saying they where solvent.

Is there any evidence out there that a bank run is under way at any of the at risk banks in France/Italy?

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Is there any evidence out there that a bank run is under way at any of the at risk banks in France/Italy?

I was in France yesterday.. there were a bunch of scruffy smelly oiks hanging around the cash machine swigging wine and smoking gitanes.

Reality check: It was the locals getting their cash out.

FRENCH BANK RUN IS ON.

Je plaisante - don't beat me up French people.. :P

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Yes, I removed 100 zloty from a cash dispenser in Poland today, panic has gripped the locals as it's almost enough for 20 packs of Gouda cheese and a kilo of courgettes

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There are plenty of reports from Greece of course, this from the Guardian a couple of days ago.

Worried about whether the banks will stay in business, Greeks have been taking their life savings out of accounts and sticking them in metal slits in basement vaults.

The boxes are so popular that the bank has doubled the rent on them in the past year – and still every day between five and 10 customers request one. This bank ran out of spares months ago. The clerk leans over: “I’ve been working in a bank for 31 years, and I’ve never seen a panic like this.”

Official figures back him up. In May alone, almost €5bn (£4.4bn) was pulled out of Greek deposits, as part of what analysts describe as a “silent bank run”. This version is also disorderly and jittery, just not as obvious. Customers do not form long queues outside branches, they simply squirrel out as much as they can.

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There are plenty of reports from Greece of course, this from the Guardian a couple of days ago.

Post 10 from this thread http://www.housepricecrash.co.uk/forum/index.php?showtopic=97049

could be important reading for Greeks bearing bank runs

Banks & Safety Deposit Boxes, Watch Out

Firstly I would discourage you to keep anything of value in a bank, an uncle of a friend of mine had $250,000 & two kilo of gold stored in a safety deposit box in BCCI, when BCCI rolled over and had to cease trading, they (by law) had to close their doors and not allow any transactions with their customers, they also made it very difficult to contact them by phone, this included their customers who had items stored within the safety deposit boxes (THAT WAS NOT PART OF THE BANKS ASSETS). Because the Bank went insolvent, so did the legal entity, this means that the company that ran the bank ceased to exists, so the liquidators moved in to assess the assets of the bank. You must realise that when a bank rolls over it could take months or even years before everything is accounted for, and if you were a bank customer who had money in your account (i.e. you loaned the bank your money) you may be lucky to get back pennies on the pound providing there was anything left, and you could be in for a very long wait.

So after several months of waiting for my friends uncle to get access to his belongings in the deposit box, he discovered that his items could not be accounted for, this is because the items in the box was not the banks responsibility if the bank doesn’t exist anymore, their duty was to only make sure those items remained safe for the duration of the banks existence. What actually happened was when the liquidators went into the bank to remove the assets of the bank “chairs, computers, carpet etc” this included the safety deposit boxes, but they were not allowed to take the items that were inside the boxes, so they cut out the locks, removed the items and left them on the floor (as they are not the liquidators responsibility), and removed the racks of empty deposit boxes to be auctioned against the banks liabilities. As you could imagine these items that were in the box - $250,000 and two kilo of gold soon disappeared.

Here’s the problem, once the bank is gone, it is no one’s responsibility to look after your items in the box, your only option is to make sure you are well insured by a third party insurance, and even then it could be tricky trying to make a successful claim, as how would you prove what was actually inside the safety deposit box.

I would think twice about using a bank for safe keeping your precious little gems.

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Well yeah - anyone who is fearing their bank could fail and solves that by putting their valuables in the bank is a ******tard.

Truth is stranger than fiction when you read stories like that from Greece

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Better check your Euro Bank Notes.... If they start with Y, S or M they were printed in Greece, Italy and Portugal according to Peter Oborne...... Is this true?

If so let the panic begin - you dont want to be holding any Euros printed in Greece :ph34r:

http://blogs.telegraph.co.uk/news/peteroborne/100099792/in-this-grave-crisis-the-worlds-leaders-are-terrifyingly-out-of-their-depth/

".....Wake up: the eurozone is very close to collapse. It will come as no surprise if some Italian and Spanish banks are forced to close their doors in the course of the next few weeks. Indeed, British holidaymakers on the Continent should be advised to take care: hold only the minimum of the local currency, and treat with especial suspicion euro notes coded Y, S and M (signifying they were printed in Greece, Italy and Portugal respectively). Take plenty of dollars with you, which shopkeepers will certainly accept if there is a run on the banks, or if euros suddenly cease to be legal currency. The precautions may not prove necessary, but there is no point in taking risks"

Edited by skomer

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There have been tweets of bank runs but not substantiated in other media.

Bank runs will be financial institutions and companies pulling their money out. Unseen, but just as deadly as a mass of people queueing at the doors.

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There have been tweets of bank runs but not substantiated in other media.

What have you been searching on in Twitter? I had a quick search for SocGen/ French bank earlier but it didn't really come back with anything.

Unless you mean stuff from the past?

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On my advice my missus closed her Soc Gen current account on Friday and transfered the money to another bank with less exposure to sovereign debit. She finally made the move after trading in SocGen shares was suspended briefly last week. I went to the bank with her and the first thing the manager said was "oh, another one, are you worried about us going bust (nervous laughter)".

I said no we were just trying to consolidate our accounts blah blah blah.

The manager didn't say there was a run but had noticed an uptick in people closing SocGen accounts over the last few weeks but said it was a trend that got going after the Kerviel affair as some people had lost faith in the SocGen to take care of their money.

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Worth reminding ourselves of WHY the French banks may need a re-capitalisation... See that BIG arrow from Italy to France?

Also, this is just the underlying debt. Think of the derivatives built on this debt (a factor of ~10x the debt itself) and you see they have to monetise all the crud. That means EUR 5 Trillion of QE or the banking system goes poof.

02marsh-image-custom1-v3.gif

That's close to $1 trillion that French banks lent to Club Med countries. I didn't know France was so rich.

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Bank runs will be financial institutions and companies pulling their money out. Unseen, but just as deadly as a mass of people queueing at the doors.

If that's the case the proles won't know until it's too late.

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Withdrew 800 on Sat morning at Barclays to a slightly odd look from the cashier - wonder if she knows something? Probably not but it's not out of the question.

Will take another grand out tomorrow if I can get to a bank.

It's highly possible it will go tits up this time - I took a grand out last time and stashed it in case and lo and behold Penfold or Badger told us they were a gnat's pube away from disaster some time later.

I'd rather be able to remain with food and fuel during a short term Zimbabwe-esque situation so the 0.001p interest I'll lose is no biggie to me.

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. . . . my missus closed her Soc Gen current account on Friday . . . . the first thing the manager said was "oh, another one, are you worried about us going bust (nervous laughter)".

:lol:

Did you happen to notice that Eric Cantona queuing at the counter?

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Withdrew 800 on Sat morning at Barclays to a slightly odd look from the cashier - wonder if she knows something? Probably not but it's not out of the question.

Will take another grand out tomorrow if I can get to a bank.

It's highly possible it will go tits up this time - I took a grand out last time and stashed it in case and lo and behold Penfold or Badger told us they were a gnat's pube away from disaster some time later.

I'd rather be able to remain with food and fuel during a short term Zimbabwe-esque situation so the 0.001p interest I'll lose is no biggie to me.

Yeah I took out 300 quid today. Will be doing the same each day tomorrow and the day after. Doubt it will come to that and in the long run it won't help me but may help get me over a few local short-term difficulties.

For me it's mainly for petrol. We have a great big sack of rice and lots of tinned stuff under the stairs. :-)

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Yeah I took out 300 quid today. Will be doing the same each day tomorrow and the day after. Doubt it will come to that and in the long run it won't help me but may help get me over a few local short-term difficulties.

For me it's mainly for petrol. We have a great big sack of rice and lots of tinned stuff under the stairs. :-)

I shouldn't worry too much about uk banks. If things get scary, they will print and print until everyone gets their cash. I even think they have depots mothballed and ready to distribute cash should there be a need.

As for Europe, that is another matter.

I reckon France will be next for a bailout, barging in front of Spain.

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Withdrew 800 on Sat morning at Barclays to a slightly odd look from the cashier . . .

Hey, you were lucky . . . my local Abbey/Santander wants a day's notice for withdrawals over £500. And two forms of ID!

I needed to cash to pay a large garage bill, so this was all a bit inconvenient. (Passport wasn't enough, can you believe!)

When I said, 'You can't be serious', cashier said, 'It's to protect you the customer, mumble mumble money laundering and so on'.

I said, 'Jeez . . . We need protecting from you banksters, not the other way around'. The queue kinda muttered, yeah right.

I've also had an Abbey/Santander card refused at an ATM last week on the grounds of 'too many transactions per month'. I took this up with the local branch and they had never heard of such a thing.

My take: Santander is expecting a run. No doubt. These restrictions are new and unwritten.

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:lol:

Did you happen to notice that Eric Cantona queuing at the counter?

:-)

Like I said, just one apocryphal and it doesn't sound like a bank run yet, just one or two people here and there moving to safer havens before any potential bank run. (I also got out of the Crock before it went tits up after reading some of the stuff on this forum, although given the subsequent nationalization it wasn't worth it).

The French govt would have to step in if SocGen gets into serious trouble although Sarkozy doesn't like the bank much.

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Interesting. Do you guys really feel that whatever happens this week/month that it'll result in the the collapse of any UK banks?

I'm not having a pop - I'm generally interested. It makes me fee like I've missed something. Something big. And that makes me feel uncomfortable.

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Interesting. Do you guys really feel that whatever happens this week/month that it'll result in the the collapse of any UK banks?

I'm not having a pop - I'm generally interested. It makes me fee like I've missed something. Something big. And that makes me feel uncomfortable.

Santander is big player in the UK. It bought Abbey and Bradford & Bingley I think.

I'd suspect, along with Soc Gen, it is the most European bank at risk . . . but I'm sure other posters here will know more.

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No, you're absolutely right - it bought out B&B. Aren't UK Santander deposits covered under the UK guarantee scheme thing (not that I think that could cover the total sum of all UK deposits!). I thought about putting some £ into Santander because of their comparatively favourable rates but decided against it because of the extent of their exposure to Spanish debt.

I just didn't think things had got that serious. Quite yet. I've got a few ££ with RBS. I'm not happy about their exposure to foreign debt but seen as they're 99% owned by the taxpayer, part of me thinks they're already the safest bet (out of all the highstreet banks).

Edited by Mr 0.01%

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  • 337 Brexit, House prices and Summer 2020

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