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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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Tue, 12/13/2011 - 13:44 | 1974689 pods
pods's picture

It will slow as it approaches zero.


Tue, 12/13/2011 - 13:48 | 1974709 Comay Mierda
Tue, 12/13/2011 - 14:03 | 1974762 gojam
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


Tue, 12/13/2011 - 14:19 | 1974849 Chris Jusset
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 ...

Tue, 12/13/2011 - 14:33 | 1974927 machineh
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.

Tue, 12/13/2011 - 14:10 | 1974772 Ahmeexnal
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     

Tue, 12/13/2011 - 14:35 | 1974934 ParkAveFlasher
ParkAveFlasher's picture

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



Tue, 12/13/2011 - 14:16 | 1974826 vast-dom
vast-dom's picture

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

Tue, 12/13/2011 - 14:37 | 1974944 Winston Smith 2009
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?

Tue, 12/13/2011 - 13:44 | 1974690 yabyum
yabyum's picture

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

Tue, 12/13/2011 - 13:48 | 1974711 SilverRhino
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)

Tue, 12/13/2011 - 14:16 | 1974829 vast-dom
vast-dom's picture


Tue, 12/13/2011 - 13:59 | 1974764 Vergeltung
Vergeltung's picture

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


Tue, 12/13/2011 - 14:15 | 1974825 DoChenRollingBearing
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!

Tue, 12/13/2011 - 14:18 | 1974846 The_Laughing_Man
The_Laughing_Man's picture

the bank of cole haan is doing all right these days

Tue, 12/13/2011 - 13:45 | 1974695 My Taint
My Taint's picture

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

Tue, 12/13/2011 - 13:55 | 1974743 GeneMarchbanks
GeneMarchbanks's picture

Not for long...

Tue, 12/13/2011 - 13:46 | 1974696 Village Smithy
Village Smithy's picture

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

Tue, 12/13/2011 - 13:47 | 1974697 SilverRhino
SilverRhino's picture


Tue, 12/13/2011 - 13:46 | 1974698 qussl3
qussl3's picture

Do banks need deposits to survive?

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

Tue, 12/13/2011 - 13:46 | 1974699 Corn1945
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.

Tue, 12/13/2011 - 13:51 | 1974726 knight99
knight99's picture

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

Tue, 12/13/2011 - 14:19 | 1974847 DoChenRollingBearing
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.

Tue, 12/13/2011 - 15:03 | 1975080 Joaquin Juarez
Joaquin Juarez's picture

Why do you think the dollar is a rocket?

Tue, 12/13/2011 - 13:50 | 1974723 junkyardjack
junkyardjack's picture

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

Tue, 12/13/2011 - 13:57 | 1974756 agent default
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.

Tue, 12/13/2011 - 14:22 | 1974872 DoChenRollingBearing
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

Tue, 12/13/2011 - 13:58 | 1974759 goldfreak
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

Tue, 12/13/2011 - 14:25 | 1974890 sitenine
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.

Tue, 12/13/2011 - 13:51 | 1974725 YesWeKahn
YesWeKahn's picture

I am surprised that they still have stuff left.

Tue, 12/13/2011 - 14:00 | 1974767 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

just toilet paper called euros

Tue, 12/13/2011 - 14:08 | 1974797 Sudden Debt
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!!!

Tue, 12/13/2011 - 14:46 | 1974856 Ahmeexnal
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.

Tue, 12/13/2011 - 13:54 | 1974732 Corn1945
Corn1945's picture

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

Tue, 12/13/2011 - 13:55 | 1974736 Iliketurtles
Iliketurtles's picture

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

Tue, 12/13/2011 - 13:55 | 1974742 Calmyourself
Calmyourself's picture

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

Tue, 12/13/2011 - 13:56 | 1974747 SheepDog-One
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?


Tue, 12/13/2011 - 13:56 | 1974748 vegas
vegas's picture

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

Tue, 12/13/2011 - 13:58 | 1974757 El Oregonian
El Oregonian's picture

Greece meet frying pan.

Tue, 12/13/2011 - 13:58 | 1974760 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

rehypothecate that!

Tue, 12/13/2011 - 14:05 | 1974789 Sudden Debt
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 :)

Tue, 12/13/2011 - 14:01 | 1974773 SheepDog-One
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.

Tue, 12/13/2011 - 14:01 | 1974779 Sudden Debt
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....

Tue, 12/13/2011 - 14:02 | 1974781 JustObserving
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.

Tue, 12/13/2011 - 14:08 | 1974798 Dr. Horrible
Dr. Horrible's picture

What does the chart look like for BofA?

Tue, 12/13/2011 - 14:10 | 1974801 Dick Darlington
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...


Tue, 12/13/2011 - 14:10 | 1974802 toadold
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.

Tue, 12/13/2011 - 14:10 | 1974803 PulauHantu29
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:
Tue, 12/13/2011 - 14:11 | 1974809 My Taint
My Taint's picture

Fry Now or Bee Piced Out ferever

Tue, 12/13/2011 - 14:14 | 1974821 Amused2Death
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?

Tue, 12/13/2011 - 14:23 | 1974875 Mark123
Mark123's picture

Ah, who needs deposits these days in a modern fiat banking system supported by facist governments?  As long as the credit card works all is good.

Tue, 12/13/2011 - 14:26 | 1974897 Peter Pan
Peter Pan's picture

It's a sad truth that Greeks with any memory will yearn for the return of a military junta given the failure of a corrupted democracy. The problem is that armies these days will simply be on the pay roll of those willing and able to pay their wages.

Tue, 12/13/2011 - 15:12 | 1975121 Dr. Acula
Dr. Acula's picture

>given the failure of a corrupted democracy

AKA every democracy.


Tue, 12/13/2011 - 15:36 | 1975284 falak pema
falak pema's picture

so who is next Caesar?

Tue, 12/13/2011 - 14:54 | 1975035 Bokkenrijder
Bokkenrijder's picture

Talked to a friend who works in real estate in Berlin, and he says that loads of Greeks are buying small rental appartments here, paying cash.

Tue, 12/13/2011 - 15:14 | 1975131 pine_marten
pine_marten's picture

Just as the Chinese are doing in Ausrtalia.  The filght to safety is dramatic and tangible.

Tue, 12/13/2011 - 15:10 | 1975116 Esculent 69
Esculent 69's picture

just hand out gift cards instead of cash that sucks out the rate of inflation per day like the slow errosion from "accont maintanance fees". problem solved

Tue, 12/13/2011 - 15:15 | 1975139 PulauHantu29
PulauHantu29's picture

Running where? To Bonds/Debt?

Tue, 12/13/2011 - 15:35 | 1975278 falak pema
falak pema's picture

So those who have money take it out of the banks and put it..Where??? WHere does this money go? Under the mattress??

Tue, 12/13/2011 - 16:29 | 1975546 pasttense
pasttense's picture

A good place would be German banks, since if the Euro falls apart the German currency should remain the strongest. But any other country would be stronger than Greece.

Tue, 12/13/2011 - 15:41 | 1975295 falak pema
falak pema's picture

sarkozy is trying very hard : new slogan : buy french!! To get elected in these horrific times you have to follow the winds of change; wherever they take you; even to Syria! I can imagine him saying to new boss in Syria as in Libya : buy french!!

Tue, 12/13/2011 - 15:44 | 1975315 pineyard
pineyard's picture

In MY opinion .. the GREEK CAPITAL FLIGHT is very easy to solve.. and i am astonished the Greek State has not used this TOOL at a much earlier Time;


Nobody is allowed to remove any capital without explaining for which specific purpose which have to ne plausible and in the interest of the Greek State . There will be NO OBJECTION for such a measure from other European Countries who are facing increasing needs for re-capitalisation of Greece ..

That is completely justified.. in a situation where one is facing National Bancrupcy .. in MY BOOK

Wed, 12/14/2011 - 02:13 | 1977709 StychoKiller
StychoKiller's picture

Never fear!  Yer turn is coming... (careful what ye wish for...)

Tue, 12/13/2011 - 15:46 | 1975326 pineyard
pineyard's picture

International Capital has had .FAR TOO EASY TIMES .. for a LOng time by now ... especially utilizing the anglosaxon invented TAX HAVENS,, I dont mind ..setting a STOP for THAT ... at all !

Tue, 12/13/2011 - 16:27 | 1975536 pasttense
pasttense's picture

I'm surprised it is only 20%overall. If I were a Greek resident, I would pull all my money out--except what is necessary to cover monthly expenses.

Tue, 12/13/2011 - 17:21 | 1975795 DartThrowingMonkey
DartThrowingMonkey's picture

What is your source for this data? I'd like to see the same data for the rest of the EZ.

Tue, 12/13/2011 - 17:21 | 1975796 DartThrowingMonkey
DartThrowingMonkey's picture

What is your source for this data? I'd like to see the same data for the rest of the EZ.

Tue, 12/13/2011 - 17:39 | 1975922 sony1
Tue, 12/13/2011 - 18:59 | 1976375 swani
swani's picture

People taking all of their money out of the bank are suspected terrorists and subject to indefinite detention.   

Tue, 12/13/2011 - 23:57 | 1977353 CrisisMaven
CrisisMaven's picture

As I've heard from a correspondent living in Greece ( the Greek teller machines have obviously run out of Greek-printed Euros and are all spewing out German-printed notes. Since each country is meant to have enough notes printed in relation to their average national circulation this corroborates the idea that there has been a physical bank run as well.

Wed, 12/14/2011 - 01:23 | 1977620 Caveman93
Caveman93's picture

Fuck Santa!

Wed, 12/14/2011 - 01:34 | 1977644 slackrabbit
slackrabbit's picture

I'd love to see data for the UK. I know I have been doing my bit!

Sun, 12/18/2011 - 02:47 | 1990890 Wulfrano Ruiz Sainz
Wulfrano Ruiz Sainz's picture

Those greeks may be poor but they are not stupid.  They know that soon all banks will close their doors without prior warning.  If you want to access your bank account you'll have to accept The Mark of the Beast, a microchip in you face or hand, after you have made an act of adoration of Satan.

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