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Depositor In Failed Russian Bank Loses It, Takes Hostages, Demands $700,000 Ransom

Tyler Durden's picture




 

Earlier today, the Central Bank of Russia announced that starting April 21, it would revoke the license of Moscow’s Bank Zapadny. According to reports, "the bank had cooked its books and failed to comply with regulations on the amount of assets a financial organization must maintain to ensure its stability, the central bank said." In other words, your typical FDIC Failure Friday only on Monday morning. Hardly notable. It is what happened next that was shocking. Shortly after the bank shutdown announcement, an armed man took three hostages at a Belgorod branch of precisely this failed Bank Zapadny.

Considering the bank is located in a Russian city in proximity to Ukraine some early speculation suggested the two may be related, however it appears
this may simply be the latest case of a disgruntled bank client taking matters into his own hands.  As RT reports, "he may be a client of the bank wishing to withdraw his deposit despite the bank losing its license.....Life News tabloid says it has identified one of the attackers as 46-year-old Aleksandr Vdovin, a client who holds the bank’s promissory notes for a large sum, and who decided to reimburse them at gunpoint."

Well, that's one way of dealing with bail-ins...

RT reports more:

The hostage situation is developing at a branch of the Zapadny bank in Belgorod, a city in western Russia in a region bordering Ukraine.

 

The armed man went into the bank on Monday morning and is now demanding a certain sum of money, police confirmed. There are three people being held hostage inside, according to preliminary information.

 

Earlier unconfirmed media reports said the man is armed with a Saiga hunting carbine and is demanding 25 million rubles ransom ($700,000).

 

Police have evacuated a school and a kindergarten near the branch as precaution. The region’s police chief, General Viktor Pesterev, is at the scene. Negotiations are underway.

Curiously, unlike in Cyprus where capital controls were taken by the general public relatively calmly, in Russia the limitation on deposit withdrawals resulted in a prompt hostage situation.

The withdrawal of the license means that the bank’s clients will have to wait for some time before they can get their deposits. Only deposits no bigger than about $20,000 will be reimbursed by the Russian national bank deposit insurance agency. Creditors holding larger debts will have to wait for the bank’s likely bankruptcy.

More on the situation:

Life News tabloid says it has identified one of the attackers as 46-year-old Aleksandr Vdovin, a client who holds the bank’s promissory notes for a large sum, and who decided to reimburse them at gunpoint. The report added that the hostages were the branch manager, a cashier and a janitor.

 

LifeNews also spoke to a friend of the alleged hostage taker, Gennady Vechorka, who said his holding up of the bank branch was most likely an act of desperation. He said Vdovin, a father of two, is a rational man and would release the hostages unharmed, if he is given some time to cool down and think straight.

 

The tabloid spoke to Vdovin himself on the phone. He sounded rather calm and said he was about to settle his differences with the bank. He said he tried to withdraw his deposits in a proper way two days ago, but was denied. He also agreed to allow his friend, Vechorka, into the bank to act as a negotiator.

Finally, bankers being bankers, only in this case not TBTF, they promptly found a culprit - the central bank, only in this case the issue was not being bailed out of course:

Vladimir Semago, chair of the Zapadny board of directors, blamed Russia’s central bank and its move to revoke the license for the hostage situation, saying the decision was rushed and unwise.

A video clip of the hostage situation from a neighboring hotel in Belgorod:

 

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Mon, 04/21/2014 - 06:53 | 4678903 sampo
sampo's picture

Somewhere in this world, capitalism still works.

Mon, 04/21/2014 - 06:57 | 4678912 MeMadMax
MeMadMax's picture

I would be pissed too.

Mon, 04/21/2014 - 07:03 | 4678922 Tabarnaque
Tabarnaque's picture

Welcome to the world of Bail-Ins. Soon coming to a bank near you!

Mon, 04/21/2014 - 07:04 | 4678924 GetZeeGold
GetZeeGold's picture

 

 

I wouldn't offer more than 650K.....I think he's bluffing.

Mon, 04/21/2014 - 07:25 | 4678945 fonzannoon
fonzannoon's picture

"promissory notes" LOL

it was yours, you gave it to us, we promised to give it back...but...well you are not going to believe this...we don't have it. I know, crazy right?!

Mon, 04/21/2014 - 07:34 | 4678953 Tabarnaque
Mon, 04/21/2014 - 07:53 | 4678968 Harlequin001
Harlequin001's picture

My heart bleeds purple fucking piss for any investor in a systemically insolvent financial institution that finds itself one day well, insolvent.

Whowuddaknown...

Mon, 04/21/2014 - 08:04 | 4678987 Oh regional Indian
Oh regional Indian's picture

When good people are driven to go nuts, watch out.,these are all test-runs....

If you are ever wondering what to dooooo!!!!!

http://aadivaahan.wordpress.com/2011/03/21/what-can-i-do/

Stay calm.... ;-)

ori

Mon, 04/21/2014 - 08:18 | 4679000 topspinslicer
topspinslicer's picture

ORI -- that was a fun read, sweet even

Mon, 04/21/2014 - 08:23 | 4679008 Oh regional Indian
Oh regional Indian's picture

Ahhhhaaaha,,,,,thanks TSS...topspinslice...oxy more on?

Mon, 04/21/2014 - 08:03 | 4678985 fudge
fudge's picture

gone you say ?

The FSB in the Chelyabinsk region in recent days received several statements similar to the following:

"""I am so and so took bank loan, but then I did not know that the founders of the bank - foreign companies headquartered in the member countries of NATO. I do not mind to pay back the loan, but can not because these actions fall under article 275 of the Criminal Code - namely, providing financial assistance to a foreign state, international or foreign organization or their representatives in activities directed against the security of the Russian Federation.""

http://smi2.ru/blog/43865817090/Kak-razorit-inobanki-v-Rossii

https://www.facebook.com/yurii.gurman/posts/594203540676265?fref=nf

I will be laughing hard if this guys can pull this off.

Mon, 04/21/2014 - 10:05 | 4679289 withglee
withglee's picture

 

The collapse of WTC7 is proof positive that the USA Federal Government was the instigator of the so-called 9/11 terrorist act. Among statutes violated by the Federal Government are:

18 USC § 2332f - Bombings of places of public use, government facilities, public transportation systems and infrastructure facilities

18 USC § 2332a - Use of weapons of mass destruction

18 USC Chapter 115 - TREASON, SEDITION, AND SUBVERSIVE ACTIVITIES

 

Making IRS payment is unlawful for many reasons. Among them are laws against supporting terrorists:

18 USC § 2339A - Providing material support to terrorists

18 USC § 2339C - Prohibitions against the financing of terrorism

 

The USA Federal Government is a proven terrorist. The Federal Reserve System is their enabling bank and proven financial manipulator. The IRS is the collection agency for that bank. Thus, IRS collections all fall under the following RICO statutes:

TITLE 18--CRIMES AND CRIMINAL PROCEDURE; PART I--CRIMES

CHAPTER 96--RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS;
18 USC § 1962 - Prohibited activities

 

Mon, 04/21/2014 - 07:41 | 4678957 AUD
AUD's picture

Don't laugh. Those dollars in your wallet are the promissary notes of a certain bank.

Mon, 04/21/2014 - 09:28 | 4679159 giggler321
giggler321's picture

>>"promissory notes" LOL

Here in the UK; the BofE has announced new plastic bank notes for £5 and £10 set end of 2015 whilst still considering the £50 note later on.

Those of you who have withdrawn before the great reset or confiscation order, call it what you will, may find out that your bank will not convert the old notes presently sitting under the bed, using anti-money laundering rules and regulation.

Very timing that they now want plastic notes.  Do we assume the reset is around this time?

http://www.bankofengland.co.uk/publications/Pages/news/2013/189.aspx

Mon, 04/21/2014 - 07:57 | 4678976 negative rates
negative rates's picture

They don't take ya seriously over there unless you have a gun in each hand, those cats might want more than 650K.

Mon, 04/21/2014 - 08:47 | 4679074 Spumoni
Spumoni's picture

Tell 'em to call Bernanke - they can pay him off in FRN's and not lose a dime!

Mon, 04/21/2014 - 08:05 | 4678988 bobby02
bobby02's picture

Uh, y'all realize "promissory notes" means that you are a creditor, not a depositor, right?

Mon, 04/21/2014 - 10:07 | 4679299 N2OJoe
N2OJoe's picture

...And what is a depositor? An unsecured creditor.

Mon, 04/21/2014 - 10:45 | 4679432 bobby02
bobby02's picture

No, depositors are still senior secured creditors. Before the Cyprus travesty, depositors were always super-senior, that is, they sat above all other senior secured creditors in the credit hiearchy.

In any event, promissory notes are and have always been junior unsecured debts - low men on the totem pole. This guy has no right to claim protection afforded to depositors. His claim on the bank's assets is to be satisfied if and only if senior debt, including depositors, is paid in full.

Mon, 04/21/2014 - 07:03 | 4678923 Cap Matifou
Cap Matifou's picture

In the name of the bank the apparent peril: Zapad means West.

Mon, 04/21/2014 - 07:58 | 4678979 BiteMeBO
BiteMeBO's picture

He has a gub.

Mon, 04/21/2014 - 08:30 | 4679025 firstdivision
firstdivision's picture

Capitalism in Russia?  Bwa-ha-ha-ha-ha-ha-ha-ha!  Clearly you've never done/tried to do business in Russia.  That's like saying the US is the pinnacle of Capitalism.

Mon, 04/21/2014 - 12:13 | 4679709 JuliaS
JuliaS's picture

The irony here is that the hostage taker's last name is "Vdovin", originating from the Russian word "vdova" which translates "widow".

I wonder if he's married.

Mon, 04/21/2014 - 06:55 | 4678908 Vice
Vice's picture

Ever ask people about FDIC? 

 

They have full & unquestionable faith. Most of the people I asked what the amount "guaranteed" was, they assumed it was all of what they had in there. 

 

Oh man, they'll never learn. 

Mon, 04/21/2014 - 06:58 | 4678915 MeMadMax
MeMadMax's picture

Meh, if they are not smart enough to know the amount....

 

Then moar than likely they don't have anything close to that 250k... If anything ^.^

Mon, 04/21/2014 - 07:00 | 4678917 So Close
So Close's picture

My money or your life.   

Mon, 04/21/2014 - 07:08 | 4678930 Vice
Vice's picture

Even the ones that DO have that 250k. No idea! I couldn't believe it. 

 

In fact, thinking of that ZH deer accurately describes the general conversation. 

Mon, 04/21/2014 - 07:49 | 4678961 Winston of Oceania
Winston of Oceania's picture

There is no actual money in the FDIC insurance pool, just another promise that will be fraught with capital controls regardless of the amount of the "missing balance".

Mon, 04/21/2014 - 07:58 | 4678978 Took Red Pill
Took Red Pill's picture

Yes, FDIC is severely under funded. If there was any major financial meltdown, most people would lose everything they have in the bank.

Mon, 04/21/2014 - 09:50 | 4679004 Pee Wee
Pee Wee's picture

Listen to you - "if"

Mon, 04/21/2014 - 06:58 | 4678911 michigan independant
Mon, 04/21/2014 - 06:59 | 4678916 Seize Mars
Seize Mars's picture

Is he MoHappy? Or Mo'Sad?

Mon, 04/21/2014 - 07:00 | 4678918 Quinvarius
Quinvarius's picture

In a functioning economy, bank deposits are investments.  When banks stop making loans, you should realize there will be a problem getting any interest back.  When they make bad loans, you should realize you won't get your deposit back.  If you have 10% of your worth in gold, you should only have 5% in a bank.  It should be allocated as the riskiest part of your portfolio.  Banks have a historic global failure rate that puts bank deposits in the speculative category.

Mon, 04/21/2014 - 07:22 | 4678939 PT
PT's picture

In the world of the average yob, money is proof that you did someone a favour, and as such is a claim on an equally proportionate portion of society's production.  In this world of imaginary fiat paper, I fail to see how average-yob-in-the-street's favour's should be forgotten just because the record of his favours has been transferred to Magical-Fairy-Dust-Land.  Magical-Fairy-Dust-Land has no problem receiving real fiat paper, i.e. "proof of doing a favour for someone in society", in return for doing zero actual favours for anyone in the rest of society.  We need to think harder.

Mon, 04/21/2014 - 07:02 | 4678921 nmewn
nmewn's picture

All the bank has to do is make good on the notes the depositer is owed.

Whats the problem? ;-)

Mon, 04/21/2014 - 11:02 | 4679486 dracos_ghost
dracos_ghost's picture

Silly rabbit, that only applies to the notes the BANK holds. And they will be paid.

And OT, I didn't know Dark Helment from Spaceballs lived in Moscow.

Mon, 04/21/2014 - 07:05 | 4678925 Last of the Mid...
Last of the Middle Class's picture

He just got the memo that all deposits are unsecured loans to the bank. All the lead in the world won't get his money back. Good luck with that.

Mon, 04/21/2014 - 07:25 | 4678947 PT
PT's picture

Just above you.

4678939

Mon, 04/21/2014 - 09:31 | 4679173 post turtle saver
post turtle saver's picture

true, but when you're ventilating skulls with a Saiga in each hand it does help to dull the pain

Mon, 04/21/2014 - 07:19 | 4678926 LeisureSmith
LeisureSmith's picture

Banks are known to be severely untrustworthy. With no interest to be had, why the fuck loan them your money? Would you loan money to this guy? ( insert picture of used car salesman turned crackhead here )

That person in the second pic is one corny looking character with a corny looking outfit.

Mon, 04/21/2014 - 07:54 | 4678970 PT
PT's picture

1.  If you don't have direct deposit then you don't get the job.
2.  Lifetime confirmation bias.
3.  Convenience.
4.  Herd mentality.
5.  No idea of alternatives (also see 1)
6.  Fear.
7.  Too many bigger, more immediate problems.  No time to think about such things, especially in light of reasons 1 to 6.
8.  Ignorance, especially of Cyprus, let alone anything else mentioned on ZH.
9.  Could be more reasons but I guess that 2,3 and 4 would dominate from here onwards.

10.  Take a lesson from UFO alien abductors.  Keep it low key, only abduct one or two sheeple at a time, the rest of the herd will refuse to believe you exist, let alone think you are a problem that they should be concerned about.

 

Mon, 04/21/2014 - 07:08 | 4678928 jmcadg
jmcadg's picture

Of course this would naturally be bullish for the price of PMs.
Sorry, my bad, that should read bullshit for the price of PMs.

Fuck this.

Mon, 04/21/2014 - 07:20 | 4678934 christiangustafson
christiangustafson's picture

GEORGE
Why didn't you call me?

UNCLE BILLY
I just did, but they said you left. This is a pickle, George, this is a pickle.

GEORGE
All right now, what happened? How did it start?

UNCLE BILLY
How does anything like this ever start? All I know is the bank called our loan.

GEORGE
When?

UNCLE BILLY
About an hour ago. I had to hand over all our cash.

GEORGE
All of it?

UNCLE BILLY
Every cent of it, and it still was less than we owe.

GEORGE
Holy mackerel!

UNCLE BILLY
And then I got scared, George, and closed the doors. I . . . I . . . I . . .

GEORGE
The whole town's gone crazy.

Mon, 04/21/2014 - 07:20 | 4678938 williambanzai7
williambanzai7's picture

And gold bugs are fools

Mon, 04/21/2014 - 07:56 | 4678975 BurningFuld
BurningFuld's picture

Complete freekin' idiots. Real money! Stupid idea.

Mon, 04/21/2014 - 08:06 | 4678986 GetZeeGold
GetZeeGold's picture

 

 

Sewing gold into their cloth linings, they're nothing but filthy animals - Chuck Munger

Mon, 04/21/2014 - 07:24 | 4678941 BandGap
BandGap's picture

I know, right?

Give the guy the 700K (geez, if that's rubles, good luck with that). What does the poor schlub do then? Arrest him as he's walking down the street with his bag of money. Lather, rinse, repeat.

Mon, 04/21/2014 - 07:24 | 4678942 Last of the Mid...
Last of the Middle Class's picture

It occurs to me that at every level of wealth, from penniless to mega millionaire there is someone connected to our courrupt government with a politician in his pocket attempting to separate you from your money. intresting

Mon, 04/21/2014 - 10:02 | 4679273 Papasmurf
Papasmurf's picture

A man and his money are soon party'ed.  Republican party, democratic party, labor party etc. . .

Mon, 04/21/2014 - 07:27 | 4678949 123dobryden
123dobryden's picture

BREAKING NEWS: Putin is on the way...case closed

Mon, 04/21/2014 - 08:11 | 4678993 GetZeeGold
GetZeeGold's picture

 

 

As long as he stops at the Mississippi......I'm good.

Mon, 04/21/2014 - 07:55 | 4678971 gvaboyCHFUSD
gvaboyCHFUSD's picture

funny, the guy just trying to find a bid with a gun, better to call Goldman to get 5 cents on a dollar

Mon, 04/21/2014 - 08:00 | 4678980 Ribeye
Ribeye's picture

No excuse foe taking innocent people hostage, 

Mon, 04/21/2014 - 08:24 | 4679010 Tengri Temujin
Tengri Temujin's picture

He should of just waited for the bank manager to get home and done a BELGIAN HIT on him, then the next day he should of gone back to the bank to get his money, I am sure he would of gotten it all back.

Mon, 04/21/2014 - 08:54 | 4679086 PT
PT's picture

He shoulda just registered himself as a bank, borrowed 7 billion dollars and then closed shop.

Mon, 04/21/2014 - 08:56 | 4679092 PT
PT's picture

I was gonna make that slightly more complicated and then I realized that I didn't need to.

Mon, 04/21/2014 - 13:11 | 4679960 MeelionDollerBogus
MeelionDollerBogus's picture

Clearly Russia is lacking in nail-guns.

Mon, 04/21/2014 - 09:50 | 4679017 Pee Wee
Pee Wee's picture

No excuse for banks taking your wealth hostage either. 

Mon, 04/21/2014 - 08:01 | 4678983 Took Red Pill
Took Red Pill's picture

Personally, I don't blame the guy for trying to get his money back. Although he was foolish to keep that much in one bank.

Mon, 04/21/2014 - 08:02 | 4678984 topshelfstuff
topshelfstuff's picture


it says "the bank had cooked its books and failed to comply with regulations"

 

with the words [ and failed ] taken out it would read:


 "the bank had cooked its books to comply with regulations"

 

obviously Putin never thought of doing this:

Sat May-27-06

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.

The memo Bush signed on May 5, which was published seven days later in the Federal Register, had the unrevealing title "Assignment of Function Relating to Granting of Authority for Issuance of Certain Directives:
Memorandum for the Director of National Intelligence."

(
Negroponte oversees both the CIA and NSA in his role as the administration’s top intelligence official.)

William McLucas, the Securities & Exchange Commission’s former enforcement chief, suggested that the ability to conceal financial information in the name of national security could lead some companies to play fast and loose with their numbers.”
Mon, 04/21/2014 - 08:11 | 4678992 topshelfstuff
topshelfstuff's picture

 

....may exempt companies from certain critical legal obligations. These obligations include keeping accurate "books, records, and accounts" and maintaining "a system of internal accounting controls sufficient" to ensure the propriety of financial transactions and the preparation of financial statements in compliance with
"generally accepted accounting principles
."

Mon, 04/21/2014 - 08:28 | 4679020 Tengri Temujin
Tengri Temujin's picture

Kind of goes with his pushing for ONE TRILLION IN TARP for passing through congress without any accounting as to how the funds were used.  Heck maybe part of that money went to buy his ranch in Paraguay....Those BUSHES, father and son were some of the shadiest crooks the world has ever seen.

http://www.fourwinds10.net/siterun_data/government/fraud/gw_bush_ghw_bus...

Mon, 04/21/2014 - 08:33 | 4679037 Pee Wee
Pee Wee's picture

Good thing you have Jeb to look forward to being installed.

Incorporated "voters" for Jeb, 2016

Mon, 04/21/2014 - 09:48 | 4679209 topshelfstuff
topshelfstuff's picture

thanks to your reminder, it just dawned on me that we have a very good chance in seeing the 2 choices be either a Bush or Clinton

i really hope Ron Paul decides to run as an alternative 3rd Party, i think he would have won had he run in 2012, and now the country is even more Ready for this Alternative ... Not a DEM or GOP

Mon, 04/21/2014 - 09:53 | 4679228 Pee Wee
Pee Wee's picture

It sounds like we both agree that it is completely fixed.

Ron Paul would have very limited appeal to anyone under 30.

Mon, 04/21/2014 - 10:46 | 4679436 sleigher
sleigher's picture

Ron Paul can run and even win maybe.  But if he tries any of those ideas he has he will be the next JFK.

Mon, 04/21/2014 - 11:09 | 4679507 geotrader
geotrader's picture

Ron Paul has zero chance to win.  I wrote him in and will again, but no chance at all.

Mon, 04/21/2014 - 12:11 | 4679703 dogbreath
dogbreath's picture

I would down vote both those tunes but I know your trying to make another point

Mon, 04/21/2014 - 17:48 | 4680897 PT
PT's picture

I'd downvote the first one and give multiple upvotes to the second.  It's an absolute classic.  But if you can't figure that out in the first 20 seconds then I guess you just don't get it.

Mon, 04/21/2014 - 09:53 | 4678997 Pee Wee
Pee Wee's picture

Eric D. Holder has held justice hostage in the US for years!  Fish in a barrel.

Mon, 04/21/2014 - 08:46 | 4679068 highwaytoserfdom
highwaytoserfdom's picture

ATTICA! ATTICA! ATTICA! ATTICA! Dog Day Afternoon...ATTICA!  Yup prison riot.. 

Mon, 04/21/2014 - 10:03 | 4679268 RaceToTheBottom
RaceToTheBottom's picture

Can't Putin Xfer some money from his 40 billion Swiss account to shore up the bank?

Is SWIFT required to do that?

Mon, 04/21/2014 - 13:01 | 4679918 MeelionDollerBogus
MeelionDollerBogus's picture

if Switzerland was caught using anything other than SWIFT they'd be the new Crimea.

Mon, 04/21/2014 - 10:20 | 4679347 22winmag
22winmag's picture

Let me get this straight. One man with a rifle can cause this much mayhem?

 

One can only imagine what might happen when millions of Americans pick up their rifles and march on the bank or on city hall.

Mon, 04/21/2014 - 12:58 | 4679901 MeelionDollerBogus
MeelionDollerBogus's picture

Barricade walls of Twinkies (now back!) and Cheetos are standing ready for deployment.

In the event that's not enough random Wal-mart shacks will be deployed with the lowest, lowest prices evarrrr.

Mon, 04/21/2014 - 10:53 | 4679460 kchrisc
kchrisc's picture

Now that's a "bail-in."

 

"He should have brought a guillotine as well"

Mon, 04/21/2014 - 11:19 | 4679538 nathan1234
nathan1234's picture

There are hordes of people in the US and the world who have lost their shirts, pants and underpants to HFT , done with full complicity with the SEC and the CFTC.

I do wonder when justice will be served and served to those who have lost.

Maybe thats why they are fixing up a war in the Ukraine as a start to something bigger as a diversion .

 

 

 

Mon, 04/21/2014 - 12:20 | 4679726 robertocarlos
robertocarlos's picture

You'd think mopping floors for a living would be safe. God damn banks.

Mon, 04/21/2014 - 12:36 | 4679787 TomGa
TomGa's picture

Hostage taking may be a bit much, but I'd have no problems with instituting capital punishment for bankers who commit financial crimes involving or causing a loss of their depositors' funds.  In fact, I'd lessen the prosecution's burden of proof in these cases.

Mon, 04/21/2014 - 12:55 | 4679885 MeelionDollerBogus
MeelionDollerBogus's picture

What is be saying...

if is be you don't hold it,

then is be surely you don't own it

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