Greek Bank Deposits Plunge By €5.5 Billion In September: Biggest Monthly Drop Ever

Tyler Durden's picture

We had a feeling that the modest upward blip in Greek August deposits by corporations and households, to the tune of €1.4 billion, was a "transitory" event. It was. According to just released data by the Bank of Greece, the September collapse in gross deposits from €188.7 billion €183.2 billion was the largest ever, and took the total to an amount last seen in June 2007. Indicatively Greek deposits peaked at €237.8 billion in September 2009. Said otherwise, in addition to being massively undercapitalized, banks cash in the form of deposit liabilities has plunged 23% from its all time highs. Look for this number to continue dropping month after month as more and more Greeks move their cash offshore. Additionally, the ECB announced that financing to Greek banks in September was €77.8 billion while Greek reliance on the "temporary" Emergency Liquidity Assistance program hit €26.6 billion according to Bloomberg. With every additional deposit outflow, expect ever more money to be needed to keep the Greek sham of a banking system afloat, and more and more Germans to follow in Jens Weidmann's footsteps and start getting very, very angry.

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PaperBear's picture

Who were the fools putting in €1.446 billion into Greek banks during August 2011 ?

DormRoom's picture

why doesn't the EU go after Goldman SAchs for selling Greece swaps to hide its deficit, so it could get in the union?  Oh right, if they crush GS, the economy would collapse, and US Congresspeople would lose in the election.

 

GS owes EU taxpayers $$$

 

A pox upon the house of Goldman SAchs!

 

#occupywallstreet.

topcallingtroll's picture

They cant go after goldman sucks and greece, because every single southern european country did it too.

DormRoom's picture

But that's the @#ASF problem.  Goldman Sachs conducts these questionable dealings, and it has primary dealer status, and is recognized as a TBTF bank, implying that if it goes down, it'd lead to systemic collapse.

 

So GS is untouchable, as it continues its de-facto criminal dealings.  And taxpayers are on the hook, if deals go bust.

 

Why the @#$# do regulators give a near criminal enterprise global financial immunity?  Arggh.  makes me so mad.

 

#occupywallstreet.

Biosci's picture

Stage 2 in Kubler-Ross.  There, there.  It will pass.

Richard Whitney's picture

Greece tried that gambit, about one year ago. The threat lasted only over a week-end, until it was revealed that 1) Greece invited GS to Greece to do 2) what Goldman had been asked to do previously by several other EU members. That was not the first weasel move by the zeropeans, and many have followed.

You are obviously underinformed about this issue. Continue to mindlessly rant, it is your birthright.

 

Dr. Engali's picture

Uhmm you are. Or should I say you and all the other American tax payers.

Long-John-Silver's picture

You must use an intermediary bank to convert fiat to Gold and Silver when buying on-line.

Jean's picture

You, if you pay taxes

AngryGerman's picture

rats are fleeing the ship. at least the smart rats.

Breaker's picture

"Look for this number to continue dropping month after month as more and more Greeks move their cash offshore."

Well then. All is well. They can leverage the deposits and buy Greek and Italian bonds. I think this is a big positive.

topcallingtroll's picture

I have a question.

Why doesnt the EMU plan an orderly transition of greece out of the Euro. Otherwise doesnt everyone know that the transition out will be disorderly? Everyone knows it is inevitable now. The greeks are taking all their money out, that which isnt needed to pay immediate bills.

Why are they all going to allow a.disorderly exit and say " we couldnt see this coming?" No way will greeks pledge national assets as collateral.

Rainman's picture

simple one word answer is contagion

topcallingtroll's picture

It seems if they start early enough they could kick out portugal and greece, and they would have saved some money they could then put toward ringfencing italy and spain. All the money they have already wasted on greece would have been a substantial addition to the EFSF.

DormRoom's picture

if Greece exits, the rest of the PIIGs will be a target.  And theremaining PIIGS--Italy in particular-- bond yields go up, they won't be able to rollover their debts, and they will go bust.  And if they go bust, then the EZ, and Euro are finished.  And if the Euro is a failed currency, then you have a global systemic collapse.  That's the contangion the ECB fears.  We are close to that point. weeks/months away.

traderjoe's picture

Because the money-changers want their odious debt paid back.

Jim in MN's picture

Who you gonna call when the money's all gone?

"Another senior government official said Greece's eurozone partners are demanding that five top Greek officials co-sign a letter reaffirming their commitment to the country's bailout deals and economic reforms, in return for the release of a vital euro8 billion ($11 billion) loan installment later this month. He said those officials are Papandreou and Samaras, the Bank of Greece governor, the new prime minister and the new finance minister."

Pathetic.  A letter.

 

kaiserhoff's picture

You were expecting maybe, the pledge of their left nut and first born child?

AngryGerman's picture

all their daughters, delviers as virgins when they turn 16! then maybe we will release some gold! buahahahaha

YesWeKahn's picture

I am only looking at the month before, wasn't that a positive influx? It must be bullish.

YesWeKahn's picture

I am only looking at the month before, wasn't that a positive influx? It must be bullish.

kaiserhoff's picture

transitory - as in, on it's way to zero.

Odin's picture

I mean can this market really stay a float for another month? It's already over bought, and clinging on to dear life... Call me a bear, but this is insanity...

Abitdodgie's picture

I cannot see the graph the adds are over the top of it.

Ralph Spoilsport's picture

I have the same problem on the iPad.

Try the "Printer Friendly View" option at the end of the article.

pods's picture

Well, have you ever gone skiing?

Just imagine a ski slope with a little jump near the bottom.

pods

Lord Welligton's picture

 With every additional deposit outflow, expect ever more money to be needed to keep the Greek sham of a banking system afloat

And is this not the absolute truth.

Anybody in Greece holding money in a Greek bank now faces two risks.

The collapse of the banks.

And the, now not insignificant, risk that Greece might exit the Euro.

An exit from the Euro should be their greatest worry.

They would be better having all of their Euros under the mattress now.

Why take the risk of having them forcibly converted in a new Drachma?

RiverRoad's picture

It's possible that a new Drachma might be just what the doctor ordered especially since the MO of most currencies now seems to be intent on winning the race to the bottom anyway.  Greece would be overrun with tourists (Santorini redux!) and the velocity of the currency re that aspect would do the country a world of financial good in regard to what other hiccups would occur.

EZT's picture

This is Bullish, NOT

ssp2s's picture

I don't think this is going to make it to a "month after month" situation.  As Mish explained yesterday, the rational action for Greeks is to pull their money from banks, and the run that this amounts to will bring it down.  As they say, the collapse comes slowly, and then all at once:

http://globaleconomicanalysis.blogspot.com/2011/11/history-suggests-greece-will-freeze.html

youngman's picture

Whoever has money in a greek bank right now isa an idiot...but then again.....

partimer1's picture

Its not about Greece anymore, and its never really about Greeece.  Whatever they do, it simply does not matter anymore.  

yabyum's picture

Today. We are all Greeks.

Manipulism's picture
The Italian Job – How Passports Influence Monetary Policy Decisions

The nationality of the ECB’s managerial staff matters for the monetary policy of the central bank, two German and Austrian economists show in a new paper. The findings are so politically charged that the detailed results of the study are kept secret.

http://economicsintelligence.com/2011/11/01/the-italian-job-how-passport...

I would love to hear smoething about this from Tyler.


RiverRoad's picture

Yeah, and the "official line" is they're all supposed "to leave their passports at the door"........riiiight.

mayhem_korner's picture

 

 

B

  A

    N

      K

        R

          U

            N....

Dr. Engali's picture

What I want to know is why anybody keeps money in the Greek banks in the first place.

Calmyourself's picture

No shit, who would have thought the banks contained 5.5 billion euro??  Hello morons!!!

 

Your country is swirling the drain, convert Greek marked euro to N. euro and hide under bed..  Or alternatively you could buy some metal, high strength steel and lead perhaps..

YesWeKahn's picture

How much money does Greece has in deposit? From the chart, it should be zero already. That's green shoots, it can only go up from here.

TideFighter's picture

Anybody know why KITCO is down again. I've got some rumors, but no good source.

Stax Edwards's picture

I heard they refuse to sell Gold right now, because it is trading too cheap vs Fiat

MissCellany's picture

That never worried them before.

The Swedish Chef's picture

Greeks are suddenly big, if not the biggest, foreign owners of Swedish stocks. They have vacuumed Stockholm OMX for a place to put their money. Capital flight bitchez!

americanspirit's picture

Greeks are cashing out their bank deposits for lots of reasons but my guess is that the primary reason is that so many have no income now and are now living on the last of their savings.

Capitalist10's picture

Well at least that's progress, compared to living on the Germans' savings.

AngryGerman's picture

i don't mind them living of my money when they fulfill the necessary conditions (see my comment above)