“In Greece, the ‘silent bank run’ goes on” – The Atlantic


Via Business Insider. Megan McArdle writes in The AtlanticIs The Other Shoe Dropping In Europe?:

In Greece, the “silent bank run” goes on:

In one of the biggest banks in the centre of Athens a clerk is explaining how his savers have been thronging to pull out their cash.

Wary of giving his name, he glances around the marble-floored, wood-panelled foyer before pulling out a slim A4-sized folder. It is about the size of a small safety-deposit box – and those, ever since the financial crisis hit Greece 18 months ago, have become the most sought-after financial products in the country. 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.

Read more.

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This entry was posted in Action Stations, Bank Run, Bankers' Bailout, Civil Disobedience, Civil Rights & Liberties, ECB/IMF, Economy, EU, Euro / Sovereign Money, Greece, Solutions and tagged , , . Bookmark the permalink.

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