Greek Bank Run Hits Record: Unprecedented €6.8 Billion In Deposits Pulled From Greek Banks In October

Tyler Durden's picture

While it is no surprise that Greek bank deposits are rapidly fleeing both the country's banking system, and the country, following September's record outflow of €5.5 billion, the situation just got far worse, after October data reveals that a record €6.8 billion was taken out of corporate and household deposits in one month. This is unprecedented 4% of all of the country's period end deposits of €176 billion at the end of October, and represents a €33 billion decline, or almost 20%, of the country's deposit base in 2011 which started with €210 billion in bank cash buffer, and is now down to €176 billion. Furthermore, according to recent article in the German press, this number has supposedly ramped even more in recent months to double digit withdrawals, an event which means the Greek financial system is completely and totally finished. Because as history always shows there is no such thing as a bank run that gets fixed on its own. One thing is certain: November data, and then December, and so forth, will only be worse and worse and worse, until the whole country finally implodes.

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pods's picture

It will slow as it approaches zero.


gojam's picture

Top Trumps!

Economists scariest charts.

It appears the BBC have brought together top economists and each in turn has shone a torch on their face and revealed their scariest charts of 2011


Chris Jusset's picture

"One thing is certain: November data, and then December, and so forth, will only be worse and worse and worse, until the whole country finally implodes."


Domino #1 is about to tip over ...

machineh's picture

Given normal money multipliers, a banking system that has lost one-fourth of its deposits in less than two years (as well as having its asset values impaired) is deeply insolvent.

So how are Greek banks staying open? Simple: the ECB is on the hook for their negative net worth. ECB is advancing the euros, week-by-week, to cover the accelerating run on Greek deposits.

When the Troika loans stop and Greece walks, the ECB itself ends up with a massive nonperforming loan to Greece ... which it will continue to book at full principal value plus accumulated interest, on the grounds that 'We don't take haircuts.'

And so the gangrene spreads from the extremities to the beating heart of Europe.

Ahmeexnal's picture

Greeks know that part of Merkel's demands was that all Greek bank deposits become property of the German Reich.

Meanwhile, in France, in yet another act of petulant stupidity, Sarkozy bans poor people from areas in Paris which from now on are only FOR RICH PEOPLE.

In other words, LET THEM EAT MUD PIE:

Paris bans beggars from most popular shopping and tourist hotspots


The glittering Christmas window displays in Paris's luxury stores are often offset by a shivering person begging for coins nearby, huddled behind a cardboard sign saying "hungry".

With the French economy in crisis and the looming spectre of another recession, Paris's poor and homeless people are more present than ever in doorways and metro entrances. Campaigners have demanded action on the country's housing crisis. Instead President Nicolas Sarkozy has launched a war on beggars, setting himself against Paris's popular mayor.

Sarkozy's interior minister and long-time right-hand man, Claude Guéant, has issued a series of decrees banning begging around Paris's most popular Christmas shopping and tourist spots. He says arresting and fining beggars is crucial to stop foreign visitors being pestered by begging "delinquents" run by organised mafia gangs.

The Champs Elysées was first on his list with a begging ban from September to January, which has been extended to next summer. Now two more Christmas begging no-go zones have been created: around the famous Galeries Lafayette and Printemps department stores, as well as the Louvre and the Tuileries Gardens.


L I B E R T E      *       E G A L I T E     

ParkAveFlasher's picture

L I B E R T E      *       E G A L I T E   *    BULLSHITE



vast-dom's picture

I'm amazed, given funduhmentals aka reality, that bank runs to date are so conservative.

Winston Smith 2009's picture

"I'm amazed, given funduhmentals aka reality, that bank runs to date are so conservative."

Me, too. The sheep slowly awaken, realize they are being sheared and will soon be mutton.  If the average Greek had not been so susceptible to BS propaganda, the total withdrawal of Greek deposits would have been over long ago.  But why should Greeks be any more aware of what's actually going on than are the general populations of other countries?

yabyum's picture

Bank run, coming to a country near you. P.S. your shoe box pays the same interest.

SilverRhino's picture

P.S. your shoe box pays the same interest

And at this point has LESS chance of being robbed (as long as you are discrete)

Vergeltung's picture

and, I can actually guard my shoebox! that's a win-win scenario, you ask me.


DoChenRollingBearing's picture

Yes!  I can get my zero percent interest (which is better than some bank accounts) and have Mr. Beretta help me look over the cash.  Also, it is there in case of a Bank Holiday, instantly deployable into more gold (whn I am back in the USA on Thursday anyway).

Win-win, bitchez!

The_Laughing_Man's picture

the bank of cole haan is doing all right these days

My Taint's picture

I'm just kind of amazed there is still that much money in Greek banks period. More oozo please.

Village Smithy's picture

My bet is that we will never see the November data, Greece won't make it that far.

qussl3's picture

Do banks need deposits to survive?

Cant they just play the sovereign bond as collateral game for the next 3 years?

Corn1945's picture

I would be withdrawing money if I lived in one of the PIIGS. The next question is, do you keep it in Euros?

Does the Euro survive when the PIIGS leave (or Germany) and you keep your cash? Or does the Euro implode and you lose everything anyway?

I would get the money out of Euros entirely.

knight99's picture

You buy the necessities you will need. Keep a little spending money put the rest in gold and silver

DoChenRollingBearing's picture

@ Corn1945

+ 1

I WILL be withdrawing money living in the USA.  I will keep some in FRNs and put the rest in gold.

If I were living in one of the PIIGS now, I would be very nervous, asking just the same questions you did.

Joaquin Juarez's picture

Why do you think the dollar is a rocket?

junkyardjack's picture

We need a ban on bank withdrawals.  These damn deposit speculators are disrupting our entire system!

agent default's picture

Will come.  Label it as something like fighting the drug trade or some other mambo jumbo  and impose a withdrawal limit of say $200 per month.  Everything else through credit card.  While at it ban possession of cash higher than the $200 limit. Enforce insanely severe penalties in the name of rule of law and blah blah.

DoChenRollingBearing's picture

If that´s coming, better get busy and get some paper out ASAP vs. having electrons in the bank.  If they slapped a limit of $200 / month (or even $500 / month), that would affect and hurt a lot of people (like those who cannot bank during the daytime).

Au > FRNs > electrons in the bank

goldfreak's picture

you're a terrorist and the drones can spot you taking money (your money) out of BAC and blow you up on the spot. And besides we have pictures of you with al qaeda

sitenine's picture

It's called a Bank Holiday, and yes, it is coming. Country by country. Your deposits are not safe. They have already been pledged as collateral to lenders with 'senior creditor' status. The FDIC is bankrupt, and taxpayers (you) will be paying for more bailouts in short order. Debt has consequences - either you pay it back, or you default.

YesWeKahn's picture

I am surprised that they still have stuff left.

Mr Lennon Hendrix's picture

just toilet paper called euros

Sudden Debt's picture

To bad those metal strips in the bills are a real pain in the ass... Thats why I like to wipe my ass with 1 dollar bills, NO WIRE IN THOSE!!!

Ahmeexnal's picture

Those strips are actually the antenna.

Each and every bill is a monitoring device. Cameras on each side, energy provided by piezoelectric nano particles in the ink.

Welcome to your worst nightmare.

Corn1945's picture

I'm curious what this chart would have looked like in Argentina before they defaulted.

Iliketurtles's picture

should I read this as bullish? I have not heard CNBC's take on this yet.

Calmyourself's picture

Simply amazing there is that much left to pull out..

SheepDog-One's picture

SO we are with the DOW stuck at +60 since the stick-save earlier, frozen there like a fly in amber...what do we get a 3:30 rumor to ramp it or bleed off to red by close?


vegas's picture

I swear, I didn't know you could deposit sheep and ouzo in a bank.

El Oregonian's picture

Greece meet frying pan.

Sudden Debt's picture

He! That's my gold! I gave to.... NOT TO YOU!

It kind of reminds me of the gift passings. You give away the gifts taht you don't like and after 3 years, the person who gave away the gift in the first place receives the same actual gift from somebody totally different :)

SheepDog-One's picture

Gee cant they just replace all those bank funds with freshly printed $7 billion from the central bank? So easy, even a caveman could run a world economy.

Sudden Debt's picture

Yes, every greek is taking his million and buys gold bars and burries them in their yard...

In the meanwhile, soldiers get food because their pay is already 2 months late, children get to go home from school early to go to the foodkitchens because at home they can't buy food anymore, millions have got their electricity cut off, fuel consumption is at a all time low in Greece.... . .. . ...
No happy christmass for the Greeks I guess....

JustObserving's picture

What are the Italians, Spaniards and French waiting for?  Bank runs will be an everyday occurrence in Europe.

Best time to be a burglar in Europe.

Dr. Horrible's picture

What does the chart look like for BofA?

Dick Darlington's picture

And the budget, oh dear... From the press release given by Greece MInistry of finance we get the following:


According to the preliminary data available for the execution of the State Budget for the eleven months January – November 2011, on a fiscal basis, the deficit amounts to 20,516 million Euros compared to the new target of 21,063 million Euros set in the voted Budget for 2012. During the same period in 2010, the State Budget deficit amounted to 19,516 million Euros.

Total State Budget revenues (Ordinary and Investment Budget) are 192 million Euros below the new target, but total expenditures (Ordinary and Public Investment Budget) compensated for this revenue shortfall by amounting to 739 million Euros lower than the new target.

Specifically, on an eleven-month basis (January – November 2011), net revenues of the ordinary budget amounted to 43,833 million Euros, declining by 3.1% in comparison to the respective period of 2010. The revenue shortfall can be mainly attributed to the deeper recession than that projected when the 2011 Budget was prepared (last quarter of 2010), lower withholding personal income tax receipts due to the more favourable tax treatment as a result of the new tax law and reduction in taxable income, and finally to the increased tax refunds due to the clearing of previous years’ obligations.

Ordinary budget expenditures increased by 3.650 million Euros or 3.0% in the eleven months of 2011 on a year-on-year basis. This is mainly due to a significant increase in interest expenditures of 2,638 million Euros or 20.4% thus far in 2011 relative to 2010.

State Budget primary expenditures (spending excluding interest) increased by 3.0% or 1,339 million Euros between January-November 2011 on a year-on-year basis, reflecting an increase in grants of 2.768 million Euros relative to 2010 for social insurance and health, which exceeded the reduction of 1,429 million Euros in other spending categories.


Read the rest of this sad story here...


toadold's picture

I never thought I'd see the Swiss worried about too much money being deposited in their banks but now they are.

PulauHantu29's picture

Shanghai Prices Down 40% from Peak, Inventory Clogs Market

The LA Times reports China's housing bubble is losing air

Home prices and sales plunge after China's government intentionally slams on the brakes. Some recent buyers stage demonstrations, destroy real estate offices and demand refunds of up to 40%.

Home prices nationwide declined in November for the third straight month, according to an index of values in 100 major cities compiled by the China Index Academy, an independent real estate firm. Average prices in the Shanghai area are down about 40% from their peak in mid-2009, to about $176,000 for a 1,000-square-foot home.

Sales have plummeted. In Beijing, nearly two years' worth of inventory is clogging the market, and more than 1,000 real estate agencies have closed this year. Developers who once pre-sold housing projects within hours are growing desperate. A real estate company in the eastern city of Wenzhou is offering to throw in a new BMW with a home purchase.

Read more:
My Taint's picture

Fry Now or Bee Piced Out ferever

Amused2Death's picture

Wait, 2 years staring into the abyss and 96% of the deposits are STILL held in Greek banks?  What are those holding the $170 billion thinking?