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Fourth Largest Bulgarian Bank Seized After Bank Run: "let's Not Tear Down Our House" Central Banker Begs

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http://www.zerohedge.com/news/2014-06-20/fourth-largest-bulgarian-bank-seized-after-bank-run-lets-not-tear-down-our-house-cen

The small, impoverished country of Bulgaria may not be in the Eurozone (even though its currency is pegged to the Euro), but it is in the European Union. Which is why we find it surprising that there has been relatively little mention that overnight the fourth largest Bulgarian bank, Corporate Commercial Bank (Corpbank) and which in recent weeks has made headlines due to the political exposure of one of its largest shareholders, was seized by the Bulgarian central bank following what Reuters reports was a run on the bank.

With preserving confidence in the banking system key, and since the small country is not immune from failure unlike its southern neighbor which knows Europe will now never let its banks fail, the central bank promptly took to boosting morale, when its governor Ivan Iskrov begged depositors to stay calm, saying: "Let's not tear down our house."

Reuters also reports that the Bulgarian National Bank said it had taken control of Corpbank's operations for a period of three months and removed its management and supervisory board, but stressed it was not bankrupt. A Reuters photographer saw dozens of people queuing outside the main office of the bank in the Bulgarian capital on Friday.

I think it must we a good few months since the last bank run we had?

Luckily the bank isn't bankrupt!

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Poor Ivan.

Just give everyone their money back. Then you can build it back up again and restore trust.

What? You don't have it?

That'll be that fraud called fractional reserve banking.

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Perhaps we need a global " Bank-Run-Ometer"

like the "Mortgage Impode - O - Meter"

http://www.housepricecrash.co.uk/forum/index.php?showtopic=40530&page=1

http://ml-implode.com/

There is the "bank-implode-ometer", but it's not quite the same

http://bankimplode.com/

Edited by Saving For a Space Ship

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Poor Ivan.

Just give everyone their money back. Then you can build it back up again and restore trust.

What? You don't have it?

That'll be that fraud called fractional reserve banking.

It's called bankruptcy in my book! And in everybody's book but banks.

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SOFIA (Reuters) - Bulgarian authorities said on Saturday they had detained two men suspected of involvement in what they have described as an organised attempt to destabilise the country's financial system by encouraging citizens to withdraw bank deposits.

The national security agency said authorities had detained one man in the capital Sofia and a second in the Danube city of Ruse on suspicion of spreading false information about Bulgarian commercial banks.

They are the first arrests since Bulgaria launched a criminal investigation on Friday following a run on a second commercial bank in the space of a week. The interior ministry said criminals were using the internet and mobile phones to send messages urging citizens to pull their savings from banks.

https://au.news.yahoo.com/thewest/business/world/a/24343255/bulgaria-makes-first-arrests-over-bank-runs/

The bank was doing just tickiety boo - these guys spread rumors for their own personal gain, now arrested.

:)

Edited by little fish

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Any political dimension to this Black Sea country?

Bulgaria is to halt work on its Russian-backed South Stream gas pipeline following criticism from the EU and US.

Prime Minister Plamen Oresharski announced that he had "ordered all work to be stopped".

"We will decide on further developments following consultations with Brussels," he said after meeting with US senators.

The Gazprom-financed pipeline would ship gas to western Europe via the Balkans, thus avoiding Ukraine.

The European Commission had sent Bulgarian authorities a letter at the start of the month, asking them to suspend work on the project.

The EC claimed Bulgaria may have broken EU public procurement laws by choosing local and Russian bidders.

Bulgaria has previously said it is being targeted by Brussels as a means of retaliating against Russia over the situation in Ukraine.

The economic crisis in Ukraine has, after all, served Russia well.

Edited by Sledgehead

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criminal creditors of the bank demand the bank comes good on its debt.

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