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Who's Next? Italy's Monte Paschi Admits To Billions In Deposit Outflows

Tyler Durden's picture




 

It appears, given news from Italy today, that European depositors are increasingly coming to the realization that deposits in their local bank are not 'safe' places to put their spare cash, but are in fact loans to extremely leveraged businesses. In a somewhat wishy-washy, 'hide-the-truth'-like statement on Monte dei Paschi's website, the CEO admits to, "the withdrawal of several billion in deposits." Of course, the reasons why these depositors withdrew their capital from the oldest bank in the world will never be known though of course he blames it on "reputational damage" from their derivative cheating scandal. Apparently the fact that this happened to come about six week after said scandal and the bank's third bailout, and that the prior two bailouts did not result in such an outflow of unsecured liabilities (at least not to the public's knowledge), was lost on the senior management, as was lost that a far greater catalyst may have been the slightly more troubling events in Cyprus in the second half of March. Unsurprisingly, as Reuters notes, the CEO declined to give a forecast on the level of deposits at the end of the first quarter of 2013; no wonder given the bank just doubled its expectations for bad loans and the 'Cypriot Solution' dangling over uninsured depositor hordes.

Via Reuters,

Customers' deposits at Italian bank Monte dei Paschi fell by "a few billion euros" ... the bank said in a document posted on its web site on Saturday.

 

...

 

But it has yet to make clear what impact the scandal itself had on its first quarter results.

 

"The illicit nature of the derivatives trades and their consequence on the bank's assets exposed the bank to reputational damage that was immediately translated into...the withdrawal of a few billion euros in deposits," the bank said in a document for shareholders attending its April 29 meeting.

 

...

 

But he declined to give a forecast on the level of deposits at the end of the first quarter of 2013 or to indicate the outlook for net interest income and loan loss provisions.

A quick glance at BMPS' capital structure shows that there isn't a whole lot (read: almost any) of impairable securities below the unsecured liability (i.e., deposit) level. It is also obvious that when the bad debt impairment begins and depositors start getting whacked at least senior bonds, which should be pari passu, will feel the pain too as per the Diesel-BOOM doctrine, although we doubt this particular case of pain sharing will bring much comfort to any and all uninsured depositors in the oldest bank in the world.

 

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Sat, 03/30/2013 - 16:08 | 3392052 francis_sawyer
francis_sawyer's picture

Italians understand the meaning of a padded mattress...

Sat, 03/30/2013 - 16:15 | 3392073 negative rates
negative rates's picture

Derivatives bitches!

Sat, 03/30/2013 - 16:18 | 3392083 The Shootist
The Shootist's picture

Bullish for the DOW.

Sat, 03/30/2013 - 17:02 | 3392119 Banksters
Banksters's picture

Fractional reserve implosion in 3, 2, 1.   No worries, because GS Draghi will save the day, though I did read somewhere that  banks who required Emergency Liquidity Assistance would need to be solvent but illiquid.  Lol.  You can't make this shit up.

 

Memories.

Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.

What could go wrong?
Sat, 03/30/2013 - 17:53 | 3392309 Richard Chesler
Richard Chesler's picture

Financial speculation is intrinsically a transitory mechanism, since it is dependent on confidence, and confidence in the medium run is undermined by the very speculation itself.

Sat, 03/30/2013 - 18:15 | 3392351 SafelyGraze
SafelyGraze's picture

"where there is no (libor) justice, there can be no deposits" 

-naomi

Sun, 03/31/2013 - 09:18 | 3393146 BaBaBouy
BaBaBouy's picture

Will Cyprus Fractional Reserve Banking (-7%) Contagion Spread Across EU ???

Will Ben Shalom Save Europe And The 1% Like In 2008 ???

Will FED Sprinke $ TRILLIONS Around The World Like Green Icing Sugar ???

 

HAVE Your Postion In GOLD In HAND !

Sat, 03/30/2013 - 20:43 | 3392590 Ahmeexnal
Ahmeexnal's picture

Monte di Stronzo bank.

Sat, 03/30/2013 - 21:24 | 3392668 Kirk2NCC1701
Kirk2NCC1701's picture

If "Nigel-you-heard-it-here-fist-Farage" is to be believed in his proclamation in Santiago today, 3/30, he stated to day that "Slovenia is next".  In spite of what their politicians claim.

I have not received a satisfactory answer how that can be, given one of Europe's most educated people and an economy that until recently had a puny 38% Debt/GDP ratio.  Unless someone knowingly and deliberately toxified their banking system -- to set them them up for a fire-sale plunder of real assets!? -- it makes NO sense how an economy can go from 'glow' to 'no go' in such a brief time frame. 

A banking version of Ocean 11 con-game going on with the banks of small and easy-to manipulate peripheral economies?  Got Goldman Sachsed?  If so, it goes to show just how desperate the 'core' banks have become on the EU... playing for time, to allow their creme-de-la-creme clients to run for shelter, before it all blows up.

Sat, 03/30/2013 - 22:29 | 3392760 Ahmeexnal
Ahmeexnal's picture

Slovenia will be the wall against which the teutonic usurer plunderers will crash and burn. Those people don't play shit and know very well whom to go after.

Sun, 03/31/2013 - 04:02 | 3393022 indygo55
indygo55's picture

Yes but do they have guns?

Sun, 03/31/2013 - 07:23 | 3393105 NoClueSneaker
NoClueSneaker's picture

Yes, they have .

Sun, 03/31/2013 - 09:08 | 3393145 new game
new game's picture

duplicate but worth 2nd post - IMFO

Wish, THINK, REALIZE!

None of this will happen.

anybody in there right mind seeing any of the right things happening, fuck no.

it is getting worse; EVERYWHERE EXCEPT ICELAND!!!!!!

tptb are firmly in control and WILL use the force of police and military to back their policies.

we are firmly locked into facism. the grip is FIRM.

wake the fuck up and quite wasting your mental energies thinking there will be a better set of policies

governing america or anywhere on this globe.

dont get me wrong, i too wish that we could put stockman or paul craig roberts in control. but i have

moved on to a better place(mentaly) - planning for the inevitable- anarchy til new forms of government evolve. This is the HISTORY lesson that will take place in your lifetime (if you are under 80 years old).

all i am saying these people sounding the alarm are correct but POWERLESS to make any change and most importantly IT IS TOO LAtE -ALREADY.

can't raise rates or allow them move to market adj. - bonds implode. without printing rates would rise and kill the budget, not to meNtion dumpage, and most iMportantly the dollar is heading to the cliff. all these policies converge to a meltdown and chaos.

any change in current policy causes major disruptions such as no check in the mail to MILLIONS of humans or bond dumpage, all while the brics are setting up trading paths around the almighty dollar. shalom has so fucked us all and he is getting backed tighter and tigher into a corner of which there is no way out without major, major market disruption or collape of life as we know it.

wish think realize and

plan accordingly...

I almost forgot-happy look in the tomb day to youall...

Sun, 03/31/2013 - 05:43 | 3393065 UK debt marsh
UK debt marsh's picture

Ireland's Debt:GDP was sub-40%, and Spain's was about 40% when TSHTF.

Slovenia's is now 60%, not 38%, and rises to 80% if you take guarantees to deadbeat State-owned enterprises and banks into account.

That 80% rose last week as they "solved" their banks with more cash-less guarantees

They may dodge the bullet, and I wish them well.  My own bet would be on Italy being next, as either a waxwork clown or a comedian win the next election, and in the interim every economic statistic looks sick.

Sun, 03/31/2013 - 10:30 | 3393216 Hondo
Hondo's picture

Remember who plundered the Cypriot banks....the elite. What are the bad assets on the books of the banks who put them there and who defaulted on them.....

Sat, 03/30/2013 - 21:47 | 3392707 Antifaschistische
Antifaschistische's picture

We need to track the number of personal safes sold in the Euro area. I bet those sales are doing just as good as gun/ammo sales in the US. Why keep your money in a bank if you can't believe it's "safe".   That's the only reason left on the planet to put your money in a bank...safety.  It's certainly not for ROI.

Sat, 03/30/2013 - 18:27 | 3392377 Buck Johnson
Buck Johnson's picture

Fractionl reserve looked good when it was being made but when it is in reverse, the banks have to come up with the money and they don't have it.  For the bank to lose a couple of billion that money was leveraged many of times. 

Sat, 03/30/2013 - 21:46 | 3392704 RaceToTheBottom
RaceToTheBottom's picture

Derivatives in the TBTF cesspool banks will do what Glass-Steagall had done in the past.  Any bank large enough to have large Derivatives should not be the place for your deposits (or any business) and should not be covered in any deposit guarantee blathering.  The guarantee cannot be honored

Sat, 03/30/2013 - 22:46 | 3392777 NoDebt
NoDebt's picture

I think you hit on an important point.  Lay the Cyprus "template" over Citi or BofA...... I wonder what it would look like?

The ONLY thing left to hang your hat on with US banks is the ablity for the Fed to print currency (which Euro nations individually lack) to make depositors whole in nominal terms.  Still, an XX% currency devaluation looks not-so-bad compared to a Cyprus bank depositor who lost, effectively, everything.

There are no good choices left.  There are only choices.

 

Sun, 03/31/2013 - 10:35 | 3393221 augmister
augmister's picture

+1!   Bingo!  Cyprus IS the template and the TBTF banks in the US are headed down the same path, no doubt.   Before this is over in the US, there will be "new fiat" to replace and wash out the old.   Transfering FNRs to the Bank of Sealy and Bank of Certa will just be undercut by the ruling powers.   Only one path for those FNRs, and that has been post here ad nauseum.  Think of the reissue of the "new fiat" as a reverse stock split, on the order of 1 to 10, for starters.  All the legal marihuana will not let Joe and Mary Beercan American forget that they have been fleeced.   Any wonder why DHS has been buying up all the hallow point ammo?   Restrictions on legally obtained firearms in the US?   Does it all fit yet, comrades?

Sat, 03/30/2013 - 22:38 | 3392765 Handful of Dust
Handful of Dust's picture

My Uncle Guido lives South of Naples and he says they are VERY aware "what's a hap'n in Cyprus"...in his own words.

I suspect there will lots of Italians taking vacation up in Norway...and while they are there, paying the Norwegian bank a visit.

Sun, 03/31/2013 - 01:26 | 3392972 BTFDemocracy
BTFDemocracy's picture

They say its not so easy for foreign prospecting clients to deposit money into norwegian accounts...

Maybe a Norwegian can fill us in on the details.

Sun, 03/31/2013 - 02:09 | 3392990 e-recep
e-recep's picture

i think all banks on earth are fucked. norwegian banks are no exception. you gotta get out of the global banking system.

Sat, 03/30/2013 - 17:15 | 3392235 Againstthelie
Againstthelie's picture

And the reason why Gold also next week probably will be sold during european trading like it happened the last two weeks...

The more severe the problems, the more Gold is in danger...

Sat, 03/30/2013 - 18:38 | 3392392 spankthebernank
spankthebernank's picture

Gold is not in danger.  Any weakness in price will accelerate the heavy accumulation going on right now.

Sat, 03/30/2013 - 21:06 | 3392632 Lets_Eat_Ben
Lets_Eat_Ben's picture

Im feeling good about my gold calls =)

They can't stop that train. If Italy or any large country moves into gold the economics of a shift like that cannot be controlled. At that point it becomes a political situation of the highest priority.

Sat, 03/30/2013 - 22:42 | 3392774 Ahmeexnal
Ahmeexnal's picture

when that happens, you can count on north korea conveniently launching a couple of nukes

Sun, 03/31/2013 - 10:39 | 3393228 augmister
augmister's picture

Your gold calls will only be good if you buy physical.   And in my geo, it is drying up!   Be a buyer of physical at ANY price.

Sat, 03/30/2013 - 23:08 | 3392796 Go Tribe
Go Tribe's picture

China on holiday next week isn't it?

Sun, 03/31/2013 - 02:23 | 3392996 qmhedging
qmhedging's picture

Meanwhile in China " The Centre for Health Protection (CHP) of the Department of Health received notification from the National Health and Family Planning Commission (the Commission) today (March 31) concerning three confirmed human cases of influenza A (H7N9).

     A CHP spokesman said the two cases in Shanghai were two men aged 87 and 27, who passed away on March 4 and 10 respectively. As regards the case in Anhui, the 35-year-old female patient is now in critical condition.
"

More fowls will float with pigs.

http://www.info.gov.hk/gia/general/201303/31/P201303310295.htm?utm_mediu...

Sun, 03/31/2013 - 10:39 | 3393229 augmister
augmister's picture

CHINA = SEWER

Sun, 03/31/2013 - 02:23 | 3392998 qmhedging
qmhedging's picture

Meanwhile in China " The Centre for Health Protection (CHP) of the Department of Health received notification from the National Health and Family Planning Commission (the Commission) today (March 31) concerning three confirmed human cases of influenza A (H7N9).

     A CHP spokesman said the two cases in Shanghai were two men aged 87 and 27, who passed away on March 4 and 10 respectively. As regards the case in Anhui, the 35-year-old female patient is now in critical condition.
"

More fowls will float with pigs.

http://www.info.gov.hk/gia/general/201303/31/P201303310295.htm?utm_mediu...

Sat, 03/30/2013 - 17:02 | 3392203 williambanzai7
williambanzai7's picture

THE BANK EXAMINER

Sat, 03/30/2013 - 17:23 | 3392250 Pinto Currency
Pinto Currency's picture

 

Beauty, Banzai.

Keep on, keeping on.

Sat, 03/30/2013 - 18:23 | 3392368 SafelyGraze
SafelyGraze's picture

and when your exam is finished .. 

a happy ending!

Sat, 03/30/2013 - 19:04 | 3392437 FreeNewEnergy
FreeNewEnergy's picture

NOBODY COULD HAVE SEEN THIS COMING.

Nobody.

Sat, 03/30/2013 - 19:38 | 3392479 BurningFuld
BurningFuld's picture

Monte Paschi says" tis' but a flesh wound."

Sun, 03/31/2013 - 00:27 | 3392909 willwork4food
willwork4food's picture

But JFK said " Why is it bleeding so much?"

Sun, 03/31/2013 - 19:54 | 3394479 Long_Xau
Long_Xau's picture

...flesh weighing only one pound, taken from the heart.

Sun, 03/31/2013 - 00:52 | 3392937 JR
JR's picture

Banzai7’s brand of political satire cuts to the chase with a humorous exaggeration so unexpected it jolts the senses with delightful merriment and a burst of laughter. He's an original. He’s a genius of political statement.

He’s the plus one on the Zero.

Sat, 03/30/2013 - 23:46 | 3392838 palmereldritch
palmereldritch's picture

Seriously, ....and I mean it, I am not asking for this....[God forbid, God forbid]... but shouldn't he be wearing a thong?

Sun, 03/31/2013 - 06:49 | 3393082 bustdrs
bustdrs's picture

Banzai, one of the best ever graphos

Sun, 03/31/2013 - 09:07 | 3393149 Swarmee
Swarmee's picture

This sort of exposure is probably why Bernanke has TWO pairs of suspenders in his "tool kit".

Sat, 03/30/2013 - 16:28 | 3392108 kliguy38
kliguy38's picture

They would never publicly admit it unless they WANTED you to know it....they're running money OUT of deposits in an effort to pump up the velocity......THAT is how bad things are now.........

Sat, 03/30/2013 - 16:57 | 3392189 Dealer
Dealer's picture

Man this whole thing is so crazy.

Sat, 03/30/2013 - 17:23 | 3392252 Irelevant
Irelevant's picture

If all the cash goes into that infinite suply of oil we have waiting just around the corner then all will be well.

Sat, 03/30/2013 - 17:33 | 3392272 thecoloredsky
thecoloredsky's picture

And in slow motion.

Sat, 03/30/2013 - 16:59 | 3392193 A Man without Q...
A Man without Qualities's picture

Ain't much money velocity when it's stuffed under the mattress.

 

 

Sat, 03/30/2013 - 21:34 | 3392686 mayhem_korner
mayhem_korner's picture

 

 

Sure about that...?  What money moves faster - that which is "held" in a bank account, or that which is physically lying around?  Not sure why it would move less fast just because it's not in a "vault."

Sat, 03/30/2013 - 22:42 | 3392771 seek
seek's picture

Spending rates decline sharply during times of crisis, having cash on hand isn't going to change that. People will husband their last dollars/euros very carefully until they think it's safe to spend.

This really does reek of desperation. I keep wondering what's broken that we don't know about.

Sun, 03/31/2013 - 20:30 | 3394545 Long_Xau
Long_Xau's picture

There's one more factor though. In many EU countries, including Cyprus, the interest rates on savings and the perceived price inflation rates (not the statistics (this is a new word I just came up with, not to be confused with the science of statistics1. Statistics2 is a portmanteau of the words statist and statistics1, and as anything that has to do with the state, it means nothing like what it looks like at first glance)) are not pegged at zero yet. When people feel their savings are evaporating it does make them feel a strong pressure to convert them to something else.

By the way, even when people "spend" cash to buy precious metals, it has a very short term effect (increase of velocity of money) which could fool bankers, e-con PhDs etc. that things are getting better for their scheme.

Sun, 03/31/2013 - 09:12 | 3393151 Swarmee
Swarmee's picture

Simple, money in a mattress is not being bet in the global casino at ten to one ratios. Thanks to fractional reserve just removing deposits from the pool practically guarantees a reduction in velocity even if every dollar/euro/scrip deposit removed is immediately spent.

Sun, 03/31/2013 - 10:44 | 3393237 Lucius Corneliu...
Lucius Cornelius Sulla's picture

10:1?  try 30:1 in today's derivative backed speculative frenzy.

Sun, 03/31/2013 - 14:22 | 3393735 css1971
css1971's picture

No, you're out of date. The ECB went from 50:1 to 100:1 last year.

Sun, 03/31/2013 - 20:57 | 3394602 Long_Xau
Long_Xau's picture

Good point, which actually addresses what Swarmee said:

money in a mattress is not being bet in the global casino at ten to one ratios

Banks can't do crazy bets with your money? No problem! Central banks will. Like those millions of new houses made of cardboard that don't last a rainstorm, let alone the more serious natural phenomena that are bound to happen in the area. Or that war, or two, or ten, that the governments like to start - now THAT has to be a good investment. People are literally dying for it - it must be because they really want it. Or is it? I don't think so. But this is what you are betting for through the bank notes in your pocket and/or mattress. Oh, and eventually you pay for it financially (through inflation), not just by losing your soul to the devil.

You know very well what the central banks are doing. You have no excuse for holding any significant amount of their bank notes.

Sat, 03/30/2013 - 17:01 | 3392195 gatorengineer
gatorengineer's picture

They are running money out of the banks in an effort to pump up the DOW.... Fixed it for ya.

Sat, 03/30/2013 - 17:02 | 3392206 donsluck
donsluck's picture

Out of deposits into...deposits? We're talking some very rich un-secured un-insured deposits. This will not increase velocity. It's the inevitable collapse of fractional reserve banking. Simple.

Sat, 03/30/2013 - 17:23 | 3392251 Professorlocknload
Professorlocknload's picture

Thar 'tis. + however many you want!

This is the prelude to the bazooka.

Sat, 03/30/2013 - 16:44 | 3392147 Long_Xau
Long_Xau's picture

Also the importance of reputation. I foresee good reputation becoming the most hard to come by thing in the western world in a few years.

Sat, 03/30/2013 - 17:37 | 3392282 caconhma
caconhma's picture

Just keeping in mind how many jewish economists got Nobel Prizes in economics promoting financial derivatives.

It is really great to know that the West economies are only 20% productive and 80% are financial speculations. This 20% are going down very fast.

The Zionist Banking Mafia has destroyed the Western civilization by perverting its culture, morality, and work ethics by substituting it by filth, theft, fraud, and plunder.

 

Sat, 03/30/2013 - 23:11 | 3392799 Go Tribe
Go Tribe's picture

Just watched Jesus overturn the money changer tables in The Bible. Some things never change, so why won't our lawmakers overturn the Wall Street Jews?

Sun, 03/31/2013 - 00:37 | 3392922 willwork4food
willwork4food's picture

Excellent question GT.One that clearly ANNOUNCES to Americans that our store-bought lawmakers aren't shit...they should not be honored at gatherings and they should not be allowed to collect the ridiculous saleries they receive from us.

Sun, 03/31/2013 - 01:00 | 3392954 CaptainSpaulding
Sat, 03/30/2013 - 17:03 | 3392205 PhoThus
PhoThus's picture

"A few billion" most definitely translates into 10 billion minimum. Come on guys, who ya foolin?!

Sat, 03/30/2013 - 18:40 | 3392401 tenpanhandle
tenpanhandle's picture

and at  60/1 leverage, that is 600 billion of derivatives just gone completely nude.

Sat, 03/30/2013 - 20:07 | 3392526 Scro
Scro's picture

Damn it feels good to be a banksta
A real banksta-ass nigga plays his cards right
A real banksta-ass nigga never runs his fuckin mouth
'cause real banksta-ass niggas don't start fights
And niggas always gotta high cap
Showin' all his boys how he shot em
But real banksta-ass niggas don't flex nuts
'cause real banksta-ass niggas know they got em
And everythings cool in the mind of a banksta
'cause banksta-ass niggas think deep
Up three-sixty-five a year 24/7
'cause real banksta ass niggas don't sleep

Sat, 03/30/2013 - 20:22 | 3392560 FoeHammer
FoeHammer's picture

Don't get geto boys twisted with banksters

Sat, 03/30/2013 - 20:08 | 3392529 Tango in the Blight
Tango in the Blight's picture

I'm putting all my money in the Pullman Bank..

Sat, 03/30/2013 - 16:12 | 3392053 Timmay
Timmay's picture

Every depositor in every bank in the world can now be a "vigilante".

Time to raise rates, banks.

Sat, 03/30/2013 - 16:20 | 3392086 kaiserhoff
kaiserhoff's picture

Fuck You Very Much Ben Shalom.

Sat, 03/30/2013 - 16:10 | 3392055 El Oregonian
Sat, 03/30/2013 - 16:29 | 3392111 Colonel Klink
Colonel Klink's picture

Needs an update for the 21st century.  "Tribe on the run"

Sat, 03/30/2013 - 16:10 | 3392056 IridiumRebel
IridiumRebel's picture

I wish you all a very slow bank run. Keep withdrawing my friends.

Sat, 03/30/2013 - 16:43 | 3392153 Goldilocks
Goldilocks's picture

Slow Ride- Foghat (Full Version)
http://www.youtube.com/watch?v=GcCNcgoyG_0 (8:17)

Sat, 03/30/2013 - 19:04 | 3392438 IndicaTive
IndicaTive's picture

Burn the bridge
Stall the machine
Cut those ties
Come kiss that guillotine

--Gasoline, MDFMK

Sat, 03/30/2013 - 17:38 | 3392286 Eternal Complainer
Eternal Complainer's picture

No doubt.
Anybody/everywhere not pulling their money is a fool....
You know how that saying goes.

Sat, 03/30/2013 - 16:11 | 3392057 markettime
markettime's picture

Meh....just print more euro's and re-stuff the banks at the cost of all the common folk. Isn't being a banksta just grand?

Sat, 03/30/2013 - 17:07 | 3392214 donsluck
donsluck's picture

Well, the Fed certainly has the power to do just that, the ECB, not so much. This crises and wipe-out of uninsured deposits is the sign of a HEALTHY SYSTEM. It is still my contention that the Euro is structurally more sound than the US, because their central bank is cross-national and does not have the power to print without it's member countries approval. One more hurtle than the Fed has.

Sat, 03/30/2013 - 16:12 | 3392060 Yen Cross
Yen Cross's picture

     "Silent but Violent".  I didn't fart?

Sat, 03/30/2013 - 16:12 | 3392062 Urban Redneck
Urban Redneck's picture

And what percentage of the 81,303 deposit base isn't even eligible for their under-funded "insurance schemes"?

Sat, 03/30/2013 - 16:12 | 3392063 GoldForCash
GoldForCash's picture

I would like to see every account drawn down to one dollar/ euro. Keeps the account active and costs the thieves/bankers money to carry them

Sat, 03/30/2013 - 16:23 | 3392095 Racer
Racer's picture

+1000, a wonderful idea!

Sat, 03/30/2013 - 17:01 | 3392200 Dealer
Dealer's picture

+ one million, that was a great idea, I had never thought of it, but damn, that would be awesome.

Sat, 03/30/2013 - 17:31 | 3392268 Tinky
Tinky's picture

except that it wouldn't work, because the sheep would refuse to pay $35/month to keep the low-balance account active.

Sun, 03/31/2013 - 12:32 | 3393443 YC2
YC2's picture

Stupid sheep, not paying $380 a year to cost their bank a few electrons and postage stamps...

Sat, 03/30/2013 - 16:35 | 3392127 Transitory
Transitory's picture

I'm certain they would find a way to pledge those single dollars into a 2.1 trillion dollar derivative market.

Sat, 03/30/2013 - 17:30 | 3392266 Doctor Who
Doctor Who's picture

I did that to Chase bank. I got a "friendly" notice to deposit moar to avoid their new $12 monthly account fee for inactive accounts.  When I went to close the account, their customer service was top notch.  I got yelled at for closing the account and told if I would have just used the account, I wouldn't have received the $12 threat. 

 

Sat, 03/30/2013 - 21:52 | 3392711 RaceToTheBottom
RaceToTheBottom's picture

I'm surprized they didn't tell you that you would be richer if you were smarter. @ssholes

Sun, 03/31/2013 - 01:00 | 3392942 CaptainSpaulding
CaptainSpaulding's picture

 My checking account was overdrawn. Thank goodness for overdraft protection.

Sun, 03/31/2013 - 10:44 | 3393238 augmister
augmister's picture

But how could you possibly have been overdrawn when you still have CHECKS?????

Sun, 03/31/2013 - 12:12 | 3393346 CaptainSpaulding
CaptainSpaulding's picture

Car insurance withdrew a day too early

Sun, 03/31/2013 - 01:00 | 3392953 knukles
knukles's picture

What the fuck s a "friendly" overdraft notice?

Sun, 03/31/2013 - 08:52 | 3393144 Doctor Who
Doctor Who's picture

It appeared they were concerned that the $12 fee would wipe out the $10 I had left in the account.  They wanted me to know it would take my account negative probably kicking in their $35 overdraft fee.  Bless their fucking hearts..

Sun, 03/31/2013 - 11:55 | 3393360 CaptainSpaulding
CaptainSpaulding's picture

It doesnt exist. The overdraft email always begins with the following header... "URGET NOTICE" !!!

Sun, 03/31/2013 - 13:14 | 3393513 The Ponz
The Ponz's picture

When I closed my WF accounts back in 2008, they assigned the biggest, uggliest bitz in the building. This monster's "cusomter service" was like multiple concurrent root canals. She was so good at being unreasonably nasty I thought they might keep her around just to torture folks who stopped doing business with them. Her infinite wretchedness made telling her and her crook bosses to shove it even better. F the TBTF parasites.   

Sat, 03/30/2013 - 16:12 | 3392065 AbbeBrel
AbbeBrel's picture

Cualquier persona que tenga más de la "suma asegurada" en Bankia tiene que sacar su dinero de inmediato.  (Anyone with more than the "insured amount" in Bankia should pull out their money immediately.)

Sat, 03/30/2013 - 16:24 | 3392098 PontifexMaximus
PontifexMaximus's picture

Buy bankia sub bonds, you will make a lot of money, gov. will jump in the gap, read my lips!

Sun, 03/31/2013 - 02:18 | 3392994 e-recep
e-recep's picture

great idea. first thing in the morning i'll sell all my PMs and buy bankia bonds. thanks, mate. you are a genius.

Sat, 03/30/2013 - 16:14 | 3392067 gould's fisker
gould's fisker's picture

This one is especially shocking--I didn't know that shit hole of a bank was still open.  What's the world coming to?

Sun, 03/31/2013 - 01:04 | 3392957 knukles
knukles's picture

Same here. The news was they went el shitto a couple weeks ago... So who the fuck would even have any money there at all?
And why would any withdrawals surprise anybody at all?

And the name Monte di Pesche... Mounted by the Fish?

This is really messed up.

Sat, 03/30/2013 - 16:15 | 3392068 sockratte
sockratte's picture

so what does this mean? insured depositors need to be tapped. ha ha ha

Sat, 03/30/2013 - 16:15 | 3392069 ShortTheUS
ShortTheUS's picture

Limit down for all these Italian "bank-sinos" Monday morning 11 a.m.-ish Eastern time...

Sat, 03/30/2013 - 21:29 | 3392680 bank guy in Brussels
bank guy in Brussels's picture

Easter Monday holiday here in much of the Roman Catholic region of Europe

... But they'll gladly shut down trading Tuesday, for banks with deposits hemorrhaging today

Sat, 03/30/2013 - 16:15 | 3392070 PontifexMaximus
PontifexMaximus's picture

Do you ever figure out, that at this very moment ( Italy has no government) MPS will go tits up, having 31k of people on their payroll and having the leftish Fondazione as major shareholder? I pay you a nice dinner in the tuscany arra, where and whenever and even for the next 50 years!

Sat, 03/30/2013 - 16:16 | 3392075 Joebloinvestor
Joebloinvestor's picture

The ECB and IMF will stock the banks with Euros.

 

There just won't be any large depositers left.

 

PRETTY FUCKING OBVIOUS.

Sat, 03/30/2013 - 16:15 | 3392077 hairball48
hairball48's picture

So what happens when the medium to large depositors at all the  smaller and mid sized banks across Europe start moving their money around to what they "think" are safer banks? Bound to be some banks fail. Does that start a chain reaction? Does the banking house of cards begin to fall?

Sat, 03/30/2013 - 16:27 | 3392109 valley chick
valley chick's picture

Well with the theatre in the EU...it could take awhile.  Think of it like the soap opera "As the World Turns".  How many years?  ;)

Sat, 03/30/2013 - 16:33 | 3392125 css1971
css1971's picture

What interest rate are you paying me to keep my money in your bank? Sorry. Not enough. Cash please, nothing above a €100.

Sat, 03/30/2013 - 21:56 | 3392717 RaceToTheBottom
RaceToTheBottom's picture

Fractional Banking is a system designed to fail.  The abdication of deposit insurance is just the catalyst.

Sat, 03/30/2013 - 16:22 | 3392091 Rusty Diggins
Rusty Diggins's picture

I wish I was the announcer for this horse race.

 

Sat, 03/30/2013 - 16:22 | 3392092 SubjectivObject
SubjectivObject's picture

A recent/relevant Jim Willie reminder here:

" The 2005 Bankruptcy Law in the US gave away the plan, with savings deposits subordinated under derivatives. "

Dewewefeelluckypunk?

Sat, 03/30/2013 - 16:43 | 3392152 ebworthen
ebworthen's picture

And savings to be defined as anything in a 401K or IRA.

Sat, 03/30/2013 - 17:08 | 3392218 Banksters
Banksters's picture

Which is why BAC transfered trillions of derivatives over to their depositors.

Sat, 03/30/2013 - 17:09 | 3392222 donsluck
donsluck's picture

Of course there is still insurance for the depositors. As long as that holds...

Sat, 03/30/2013 - 17:40 | 3392289 rodocostarica
rodocostarica's picture

bank runs are not visible these days like they were in the 30's in USA with long lines. Big money anyway. It's all 1's and 0's and behind the scenes. Where is it going is the question? The Troika has assured it aint stayin in Europe. Tyler will let us know as the data become available.

Good fxxking luck EU.

Sat, 03/30/2013 - 16:24 | 3392096 Goldilocks
Goldilocks's picture

"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague." - Marcus Tullius Cicero

Sat, 03/30/2013 - 16:27 | 3392107 falak pema
falak pema's picture

Caesar proved him right and Mark Anthony put the blade into his neck to say "goodbye philosopher" to him!

We can be right in front of history and wrong in defining one's own fate. 

Sat, 03/30/2013 - 16:43 | 3392145 ebworthen
ebworthen's picture

Sounds like a description of Wall Street.

Sat, 03/30/2013 - 16:24 | 3392100 Schmuck Raker
Schmuck Raker's picture

BMPS:'Tis but a scratch

ARTHUR: A scratch? Your arm's off!

BMPS: No, it isn't.

Sat, 03/30/2013 - 18:29 | 3392379 Jendrzejczyk
Jendrzejczyk's picture

Alright, I'll have your leg.

Sat, 03/30/2013 - 16:25 | 3392101 kevinearick
kevinearick's picture

 

Economics 301: Translation

Capital is attempting to reverse economic emigration. What do you suppose is going to happen? If you were on a “bullet” train right now, you could spot me in a lineup going by. What does that tell you about the investment, grown men with no better idea than to play trains? The more things change, the more they stay the same. So much for America. How hard do you think it would be to shut down construction in San Francisco?

So, nature is distilling and corporate is aggregating. At top dead center, old man labor decides who will and who will not be working, net. At bottom dead center, an arbitrary, capricious and malicious teenage female decides who will and who will not work, aggregate. Women breed on wealth immobility. Men breed on income mobility. On the efficiency stroke, capital builds a slush fund of free money to begin the next round. That money only has value if labor chooses to accept it. With two senators, of course Vermont can inflate real estate with nothing more than drug dealers posing as farmers.

You are at bottom dead center and capital is maximizing the slush fund, by liquidating the middle class, with maximum expediency, short term behavior. The “good” thing about being at BDC is that you can easily pivot into another economic dimension, because you can zero out all the equations and there is no difference between the integral and the differential. It's a true lottery. The “bad” thing is that the economy of those that do not pivot will collapse.

Time is a tree of pendulums, and at the base of those pendulums is a fulcrum. If there is no perception of a pivot, you have distribution tides, between labor and capital, which will build quantum momentum, loading the spring action. The minute fulcrum triggers the hour fulcrum. If there is no perception of a pivot into a non-linear dimension, the status quo continues in the linear dimension until another dimension is recognized. When that happens, the non-linear dimension becomes linear relative to another quantum non-linear dimension. A relatively stable vortex is one thing; a moving vortex is another. Timing is everything, when you inject the nitrous.

You have a bunch of monkeys, working for an ape, all randomly punching keyboards, beginning with the letter A. One monkey gets to C by going through B. Most of the other monkeys copy. The Ape reproduces the algorithm. Another monkey goes to E through D. The ape now wants a bridge from C to D, upon which he can charge a “property tax” at the least cost and greatest revenue. What do you do?

In a couple of minutes, I can write an algorithm that will wipe out a million middle class jobs, and capital will gladly pay me a percentage, assuming that it can strong-arm it back at a later date. Liquidating an economy is easy. Building one is complex, tedious, and has no immediate payoff, because the process works against capital mythology, that capital is all powerful.

Banking is a family business. For labor, children are an investment. For capital, children are a source of slave labor. The process is not rocket science, but the middle class gets it wrong nearly every time, until it doesn't. Life is a battery, which is why capital, for all its money, can never successfully build one. All capital can do is present its latest failure, hoping to profit before backlash blows it up. The middle class chases its own tail accordingly in concentric circles.

There are precious few on this planet that can argue that they were not warned to increase their distance from capital. The Japanese had every reason to evacuate their big cities before the A-bomb was dropped. What do you suppose they were thinking when they realized they were at ground zero? What do you suppose their dependents have been thinking since? What happened during the Eisenhower administration? Truman sold out his own, which is exactly what should have been expected, as has Obama, for a few trinkets and a round of golf. They always do.

No matter where I go, there is an old man waiting to give me his property, because he instantly recognizes that I can put it back into production and extend his life. If I don't show up or do not accept the property, which I will not do without a wife that listens without reservation, the economy collapses.

You don't have to understand the system. I even did you the favor of eliminating the mathematics. All you need to understand is that you are the nitrous oxide. I have been ready to meet my maker for quite some time.

If you no longer have Willie Mays, all you can do is advertise, ending up with Barry Bonds, a shadow of the immortal. Do you really think you are going to find a Willie Mays among pot farmers wearing firefighter suits in a bubble built with monetary steroids? As a black man said, “ politics is drama for the ignorant.” Buying PM to hold with US dollars is like the Fed buying Treasuries. JPM holds all the best cards, either and both ways.

Sat, 03/30/2013 - 16:47 | 3392162 H E D G E H O G
H E D G E H O G's picture

"Buying PM to hold with US dollars is like the Fed buying Treasuries." I disagree. I buy Precious Metals, note the name "Precious", with fake, fraudulent paper, trading something I don't consider worth anything for something that has been a valuable commodity for thousands of years, and will continue to do so after the financial apocolypse. BTW, so I keep my quality of penmanship up to par, FUCK JP MORGAN!

Sat, 03/30/2013 - 19:08 | 3392441 kevinearick
kevinearick's picture

Hiring Pauses in San Francisco...

what do you suppose Wells Fargo/Warren Buffet is going to do next?

Sat, 03/30/2013 - 21:59 | 3392726 RaceToTheBottom
RaceToTheBottom's picture

They're going to Disneyland.    OOOPPPS already there.

Sat, 03/30/2013 - 17:18 | 3392243 noless
noless's picture

I wish i could view the images in your mind within my own consciousness.

Sat, 03/30/2013 - 16:24 | 3392102 Yen Cross
Yen Cross's picture

     I can't wait to see the F/X gaps on Monday.

Sat, 03/30/2013 - 16:36 | 3392129 css1971
css1971's picture

Tuesday. Isn't it Easter?

Sat, 03/30/2013 - 16:47 | 3392159 Yen Cross
Yen Cross's picture

  Asia doesn't celebrate Easter my friend. F/X markets open tomorrow Toyko time. (liquidity might be skewed) China will be on line.

Sun, 03/31/2013 - 14:09 | 3393700 css1971
css1971's picture

Heathens.

Sat, 03/30/2013 - 16:25 | 3392104 PontifexMaximus
PontifexMaximus's picture

By the eay, Mussari is still walking strong.......

Sat, 03/30/2013 - 16:26 | 3392106 css1971
css1971's picture

Wasn't Commerzbank having trouble as well?

Sat, 03/30/2013 - 16:28 | 3392110 MsCreant
MsCreant's picture

When the Cyprus depositers "lost" their money, I would think that some of that money stood as collateral for some other loans.

With the money "gone" or unavailable, or converted to shares, or whatever the fuck, should that not trigger some margin calls for the depositors who may have loans or other kinds of things on margin? Why don't we hear about that?

Sat, 03/30/2013 - 16:51 | 3392177 Fix-ItSilly
Fix-ItSilly's picture

Why be just concerned for loan collateral?  What about collateral for leveraged off balance sheet entities, derivatives?  Nobody is talking about this, just as they don't for most any 21st century finance fiasco that is foisted on the people instead of the perps.  Months or years later one learns that gambling was at the heart of the thieving of the public wallet to keep politicians and the 1% at the levers of power.

Sat, 03/30/2013 - 18:39 | 3392394 Jendrzejczyk
Jendrzejczyk's picture

The stupid fuckers just blew up their own foundation.

Sat, 03/30/2013 - 16:29 | 3392112 Ineverslice
Ineverslice's picture

 

Honey, do exactly as I say and don't ask any questions. Get a large suitcase and go to the bank now....

Sat, 03/30/2013 - 16:42 | 3392148 valley chick
valley chick's picture

+1 Been there done that. ;)

Sat, 03/30/2013 - 17:14 | 3392232 Harbanger
Harbanger's picture

Just don't ask any questions.  "It's a chopper baby."  I love that scene.

http://www.youtube.com/watch?v=2ue996GQMC8

Sat, 03/30/2013 - 17:40 | 3392149 valley chick
valley chick's picture

Indeed Harbanger! :)

Sat, 03/30/2013 - 16:33 | 3392123 Duke Dog
Duke Dog's picture

What a fucking mess. Think about it - small to medium sized business or a retired couple with several hundred thousand - there are tens of millions of these situations around the World. What to do? You can spread it around to 5-10+ banks/financial institutions to achieve "insured" status - which is simply a bucket of smoke, or you can stuff it in the mattress (assuming you can actually make the cash withdrawals). You could put it in land/rental RE, which WILL be subject to tax thievery, among other monetary/value risks out of your control, and it is certainly not mobile.

I know one thing, I would not be expecting to have one digital nickel available for my use within 10 years (and likely much sooner) if deposited/invested in any financial institution in any western nation.

Sat, 03/30/2013 - 16:40 | 3392137 Tinky
Tinky's picture

Yeah, it's becoming extremely hard to imagine how this won't cascade and bring the whole system down.

Sat, 03/30/2013 - 16:56 | 3392188 OpenEyes
OpenEyes's picture

You can spread it around to 5-10+ banks/financial institutions to achieve "insured" status 

 

Actually, that door is closing too.  In the US I believe that FDIC rules change to an insured amount (currently $250k, reducing to $100k next year I think) 'per depositor' (to be accrued to an individual social security #) rather than the current 'per deposit'.  I'm not an accountant or a lawyer, so perhaps one can correct me, but my understanding is that the FDIC currently insures each deposit up to a maximum of $250k and that, by the end of 2013, both of those rule changes go into effect ($100k maximum and per depositor).  Doors closing.

Sat, 03/30/2013 - 17:24 | 3392227 Ineverslice
Ineverslice's picture

 

Khaaaaaaaaan!!!!!

Sat, 03/30/2013 - 17:37 | 3392276 akak
akak's picture

"From Hell's heart, I stab at thy bank accounts. For hate's sake, I spit my last confiscatory venom upon thee."

Sat, 03/30/2013 - 18:40 | 3392396 disabledvet
disabledvet's picture

"Scotty i need light speed in the next 5 minutes or we're all dead...

Sat, 03/30/2013 - 22:39 | 3392766 Praetor
Praetor's picture

"I'll chase the Troika around the moons of Nibia and through the Antares Maelstrom before I  let my deposits go"

Sat, 03/30/2013 - 17:47 | 3392300 mendigo
mendigo's picture

That is incredible.
Definitely looks like money being flushed-out.
Also would seem to be coordinated.
To drop the level of insurance from 250 is amazing - not a large amount.
Will people really hop from frying pan into fire.
This will test the banks.

Sat, 03/30/2013 - 20:16 | 3392543 klockwerks
klockwerks's picture

You are correct. I just looked it up when I started to read this article. 12/31/13 back to 100K (or sooner if someone decides to)

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