Forum Post: Rumor Of Swedbank Failure Results In Second Latvian Bank Run In One Month
Posted 12 years ago on Nov. 24, 2011, 11:33 a.m. EST by MonetizingDiscontent
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Rumor Of Swedbank Failure Results In Second Latvian Bank Run In One Month
http://www.zerohedge.com/news/rumor-swedbank-failure-results-second-latvian-bank-run-one-month
-12/11/2011-
(Tyler Durden) Two weeks ago we presented... http://www.zerohedge.com/news/pictures-latvian-bank-run-mf-global-commingling-comes-town ...pictures of a bank run in Latvia after one local bank had been found to do just what MF Global is alleged of doing - gross cominningling. To wit: "If anyone is wondering why the collapse of MF Global after the discovery of its commingling and theft of client funds was the single worst thing that could happen to market confidence, then look no further than the small Baltic country of Latvia where precisely what Jon Corzine's firm did to its clients, has happened at the bank level. Businessweek reports: http://www.businessweek.com/news/2011-11-24/lithuanian-prosecutor-lists-snoras-shareholders-as-wanted.html ..."Lithuanian prosecutors issued an arrest warrant for Vladimir Antonov and Raimondas Baranauskas who are former shareholders of Bankas Snoras AB.
Both men are suspected of embezzlement and document forgery, the Prosecutor General said in a statement on its website today.
Baranauskas is also suspected of accounting fraud and abuse of authority, it said." Kinda like Jon Corzine, if not by the actual authorities, then by everybody else....
Depositors can withdraw 50 lati a day beginning today for the rest of the week, said Krumane at a pressconference."
At today's rate this is about $95. Which is why what happened next, as shown in the pictures below, was to be completely expected, and is a perfect indicator of the collapse in liquidity and credibility of our own system where commingling, unlike in Latvia, goes unpunished." Sure enough, as nothing has changed, either in Latvia or the US, things just got worse. Following a rumor in Latvia that the large Swedish bank Swedbank is about to collapse, Latvia has just experienced its second bank run in under a month.....
(((Video of people lining up at ATM and branches))) http://www.youtube.com/watch?v=rXUE_otnTJ8&feature=player_embedded
...There are conflicting views about the severity of the actual run. http://www.zerohedge.com/news/rumor-swedbank-failure-results-second-latvian-bank-run-one-month
Regardless of just how severe the event ends up being, isolated incidents like these occuring increasingly more frequently will do nothing to reinforce the public's confidence that the financial system is actually stable. And all it will take is one such rumor and/or one bank run in a major "developed nation" for things to begin unwinding.Unfortunately, with the global financial regime only focused on the symptoms and never the underlying causes of the problem, more such pictures of empty ATMs in the near future are virtually assured.
(((Continue Reading this article Here))) http://www.zerohedge.com/news/rumor-swedbank-failure-results-second-latvian-bank-run-one-month
Pictures From A Latvian Bank Run As MF Global Commingling Comes To Town
http://www.zerohedge.com/news/pictures-latvian-bank-run-mf-global-commingling-comes-town
-11/24/2011-
If anyone is wondering why the collapse of MF Global after the discovery of its commingling and theft of client funds was the single worst thing that could happen to market confidence, then look no further than the small Baltic country of Latvia where precisely what Jon Corzine's firm did to its clients, has happened at the bank level. Businessweek reports: http://www.businessweek.com/news/2011-11-24/lithuanian-prosecutor-lists-snoras-shareholders-as-wanted.html ..."Lithuanian prosecutors issued an arrest warrant for Vladimir Antonov and Raimondas Baranauskas who are former shareholders of Bankas Snoras AB.
Both men are suspected of embezzlement and document forgery, the Prosecutor General said in a statement on its website today.
Baranauskas is also suspected of accounting fraud and abuse of authority, it said." Kinda like Jon Corzine, if not by the actual authorities, then by everybody else. And just like in the US where the lack of confidence in the system following the MF filing, so in Latvia the people have decided to hit the ATMs first and ask questions later. "“This money was the bank’s clients’ money,” said Irena Krumane, head of Latvia’s bank regulator, on Latvian Television last night. Krajbanka will most likely be liquidated because the bank doesn’t have the resources to meet depositor and creditor demands unless the Lithuanian government decides to recapitalize the lender, said Janis Brazovskis, the lender’s administrator, in an interview with Latvian Independent Television program 900 Seconds today...
Depositors can withdraw 50 lati a day beginning today for the rest of the week, said Krumane at a press conference."
At today's rate this is about $95. Which is why what happened next, as shown in the pictures below, was to be completely expected, and is a perfect indicator of the collapse in liquidity and credibility of our own system where commingling, unlike in Latvia, goes unpunished.
::::::::::::MF Global clients to get $2.2 Billion::::::::::::
http://www.reuters.com/article/2011/12/09/us-mfglobal-trustee-idUSTRE7B725W20111209
-Dec 9, 2011-
::::::::::::Bank Funds Won’t Cover MF Global Shortfall, Trustee Says::::::::::::
http://www.businessweek.com/news/2011-12-06/bank-funds-won-t-cover-mf-global-shortfall-trustee-says.html
-December 06, 2011-
::::::::::::Anger mounts as MF Global clients see $3 BILLION still stuck::::::::::::
http://www.reuters.com/article/2011/11/21/us-mfglobal-customers-funds-idUSTRE7AJ0PW20111121
-Nov 20, 2011-
::::::::::::::::::::MF Global Clients Burned -2- Times::::::::::::::::::::
http://www.nypost.com/p/news/business/mf_claims_go_missing_JjJOyx2yBXc25XTeKN9sJI
-By Kaja Whitehouse / November 24, 2011-
Folks who got stuck with bum checks from Jon Corzine’s defunct brokerage firm MF Global... http://www.nypost.com/t/MF_Global ...are getting bounced a second time.
This time, it’s by the MF Global trustee’s claims process — set in motion yesterday to help burned customers get their money back.
The claims process allows those with accounts to recover 60 percent of the $5.5 billion in MF’s accounts frozen after it emerged that $1.2 billion was missing from accounts that should have been segregated, and therefore safe.
But folks who cashed out of their MF brokerage accounts leading up to the Wall Street firm’s Halloween collapse — and received checks from MF for their account balance, only to see them bounce — are not addressed by the claims process, The Post has learned....
::::::::::::Continue Reading Here::::::::::::
http://www.nypost.com/p/news/business/mf_claims_go_missing_JjJOyx2yBXc25XTeKN9sJI#ixzz1exjbo3pr
::::::::::::Other People’s Money:::::::::::::
::::::Corzine & ‘Wall St.’ Financing::::::
http://www.nypost.com/p/news/opinion/opedcolumnists/other_people_money_bnv7Yjd8IAli3dAJfSbK7M
-November 23, 2011-
The meltdown of MF Global is a striking lesson in the degree to which our finance firms and our elected officials often do business in the same way — regardless of claimed ideology. It’s particularly telling because of the way MFG head Jon Corzine... http://www.nypost.com/t/Jon_Corzine ...moved from Wall Street to government and back.
Back when Corzine ran for governor of New Jersey, he promised to bring fiscal stability to state finances and reduce the crushing property-tax burden on homeowners. Banking on a reputation for financial wizardry from his Wall Street days, he also boasted that he could expand access to health care, fund universal pre-kindergarten in public schools and pump billions into subsidized housing.
That platform made Corzine a darling among big-government types, who found it astonishing that a former Goldman Sachs... http://www.nypost.com/t/Goldman_Sachs ...chief could preach such “unabashed, old-fashioned liberalism,” as The New York Times put it. Once he became governor, however, the only way that Corzine could live up to his promises was through sharply higher taxes on some residents and accounting gimmicks of the sort that 21st century Wall Street and government often share in common.
After all, Corzine now has to explain not just the collapse of MF Global, thanks to his series of risky bets on European bonds, but also how some $1.2 billion in MF Global’s customer accounts, which are supposed to be kept separate from the firm’s own capital, seem to have disappeared. If the firm misused the money, someone is likely to go to jail....
::::::::::::Read the rest of this article Here::::::::::::
http://www.nypost.com/p/news/opinion/opedcolumnists/other_people_money_bnv7Yjd8IAli3dAJfSbK7M#ixzz1exlwGGiH
http://www.usdebtclock.org/#