Bank run in europe – thousands line up at banks & atm in latvia to withdraw money

Bank run in europe – thousands line up at banks & atm in latvia to withdraw money

BANK RUN in EUROPE – Thousands line up at Banks & ATM in Latvia to Withdraw Money Thousands of Latvians lined up at bank counters and ATMs over the weekend in an attempt to withdraw their savings from Swedbank, the country’s largest banking institution. Swedbank’s Latvian chief Maris Mancinskis on Monday called the rumors “absurd.” He said the bank is functioning normally and all depositors will have access to their funds via bank machines. Mancinskis said some 10000 Latvians withdrew over 10 million lats ($20 million) on Sunday. Latvia’s 10th largest bank, Latvijas Krajbanka, is currently being liquidated after regulators uncovered fraud on a massive scale. Depositors were left without access to their money for days. As rumors of imminent collapse began to build due to the bank’s reported liquidity problems in Estonia and Sweden, Latvians panicked and headed for their cash. This was the scene outside of numerous ATM’s in Latvia’s capital city, Riga: There are various reasons for why a bank run may occur in the US, but the overwhelming driving mechanism will be panic. Once the public realizes that a particular insititution can’t make good on its debt or the country’s currency goes into a death spiral, depositors will be out in droves. ATMs will be limited on cash and generally allow withdrawals of about $300 per day. Likewise, banks will simply not have enough money to pay out the entire account balance of every depositor, so they will more than likely implement ……