13 December 2011

It has begun

18 Kislev 5772

‘Mother of all bank runs’ has already begun in eurozone

Uncertainty over the future of the eurozone runs high, despite last week’s high-on-hot-air agreement on moving towards greater fiscal union. And that uncertainty is driving European banks into a severe liquidity crunch that could cause the region’s entire banking system to collapse, analysts fear.

Latvian bank fights off run by depositors after rumors of potential collapse
BANK RUN: Latvia’s largest bank scrambled Monday to head off a run among depositors who were gripped by rumors of the bank’s imminent ruin.

THE FUEL: Weekend rumors that Swedbank was facing legal and liquidity problems in Estonia and Sweden sent thousands of Latvians to bank machines Sunday. Prime Minister Valdis Dombrovskis told journalists that the rumors were spread maliciously, the Baltic News Service reported.