Greek Bank Run Update: Up To $1 Billion A Day Now

Tyler Durden's picture

Yesterday, we did an update of the Greek bank jog, when noting that between €100-€500 million per day was being withdrawn from Greek banks based on Kathimerini reports. 24 hours later the jog has become a trot with the most recent estimate from Reuters now estimated at nearly double: "Combined daily deposit outflows from the major Greek banks have reached 500-800 million euros over the past few days, with the pace picking up as the election draws closer and rising noticeably on Tuesday, two bankers said." This is roughly $1 billion a day in the upper case, and a number that is approaching 0.5% of the entire documented €170 billion (now likely much less) deposit base.

Deposit outflows at smaller and medium sized banks were running at 10-30 million euros.


"This includes cash withdrawals, wire transfers and investments into money market funds, German Bunds, U.S. Treasuries and EIB bonds," said one banker, who spoke on condition of anonymity.


Fears that Greece may have to quit the single currency and return to a weak drachma have fuelled a steady stream of withdrawals by companies and businesses alarmed at the prospect of seeing the value of their deposits cut sharply.


The result of the election, called after a previous vote in May failed to produce a government, remains too close to call, with the conservative New Democracy party running neck and neck with radical leftist SYRIZA.


Both groups say they want Greece to remain in the single currency but SYRIZA has pledged to scrap a 130 billion euro bailout agreement signed in March which has imposed some of the toughest austerity measures seen in Europe in decades.

At the daily rate of doubling the "estimate" by Friday the trot will be an all out sprting and Greece will be experiencing a $4 billion in outflows. We wonder which banks will have any cash left at that point.

How much of this is fact, and how much pre-election rumormongering to scare people from voting against Syriza remains to be seen. Due to the polling moratorium it is impossible to get any grasp of which is the most popular party in Greece currently, even if the polls that had been released had the accuracy of an Excel random number generator.

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Mercury's picture

ieee spectrum June issue dedicated to digital cash and money:

WakeUpPeeeeeople's picture

As they have always said in Greece:

"Bend over"

MillionDollarBonus_'s picture

The thing that amazes me is that to this day, NOT A SINGLE GERMAN OFFICIAL has opologized for causing this mess. Germany's predatory lending promised retirees comfortable retirements and government workers secure and well paying jobs, and now Merkel is just heartlessly taking it all away.

butchee's picture

Is anyone depositing Drachmas yet?

Manthong's picture

A billion today, a billion tomorrow.. pretty soon you’ll be talking real money.

zaphod's picture

Given the relative sizes of the US and Greece, this is equivalent to US depositors withdrawing $50-$100B per day from the banks. I'd say that is real money and a glimpse of what will happen in the US when the sheeple wake up.

BKbroiler's picture

MDB, you're falling off, homey.  You've been a fantastic addition to the comments section, but the troll force is not with you lately.

Badabing's picture

MDB, Bravo once again you made me LOL and pee a little.

I love the way you like to spin the truth just like the MSM anyone with a half a brain will have boiling blood with this statement. You are the king of sarc!

NOT A SINGLE GERMAN OFFICIAL has opologized for causing this mess.”

When we all know that its the banksters not the governments that should apologize.

And that’s how you spell apologize.  

Thomas's picture

Who the hell has money in a Greek bank? My God. Do they need a CAT scan? My personal run on the bank would have been months ago.

AvoidingTaxation's picture

I think has 3 causes:

1) Normalcy bias

2) Everybody thinks that his own country is better off

3) Small people has no choice

Vet4RonPaul's picture

Thomas, I had the same question.  Further, I am really surprised that there was still that much money left in the entire country.  I used to think that the Greeks were being unfairly criticized but not now; they're too fucking lazy to even pull their own money out of a bank that they know is about to go bust.  That's fucking lazy.

Doña K's picture

The Greek people have already taken their money out since last year. It is the companies that have to have accounts with which to operate their businesses especialy multinationals. And they are now taking all but their daily turnovers.

steve from virginia's picture


The idea is that Greeks are relatively well off with passbook savings accounts. They close their accounts and take the train to Dusseldorf and put the euros into a similar passbook account. All neat and tidy.

 - A large number of Greeks have no money, in or out of any bank(s).

 - Businesses with payrolls have little choice but to use local banks. Since most Greeks still have jobs (and presumably gain paychecks) there is a percentage of Greek funds that are bound to Greek banks.

 - If funds are removed from bank accounts, where indeed do they go? A bank is a bank is a bank. Greek version today, UK bank tomorrow, China bank the next day. Believe it or not there is really nowhere to hide. If money is cash in a hole in the ground, the cash itself is worth little or nobody accepts it or whatever you can trade for it is useless. Money is 'too hot' or not hot enough.

We are all in uncharted territory.

jeff montanye's picture

i think that's why some say to exchange it for gold coins or bullion while one still can (while the bank account is still denominated in euros, pounds or renminbi, in your example).  though the renminbi might outlast the dollar. 

junkyardjack's picture

Wake up? That's what the medical weed is for...

andrewp111's picture

A little perspective. That rate is peanuts compared to the 2008 run on Money Market Funds after Lehman failed. That run rate was $250B/hr and accelerating before the Fed declared a blanket guarantee.

resurger's picture

Imagine you run a stress test for 1 week bank run scenario and your Central Bank Deposits (Assets) on your balance sheet is = Zegh'oooo





capitallosses's picture

I'm getting mine out of Greece and depositing in my account at the Bank of Gono.




Dermasolarapaterraphatrima's picture

"If you see a line in front of a bank, get in it."


El Erian, PIMCO

magpie's picture

I believe Germany should apologize for not printing a 1000 Euro bill, so that the poor Greeks can take less trips to the ATM.

AvoidingTaxation's picture

You can buy 1000 CHF bills if you need...

Or gold CHF

Bellaraphon's picture

I find it disheartening that none of the Core Europe countries have started an aggressive "Buy more Feta! Buy more Rioja!" campaign.  It's their duty to buy as many products from their southern neighbors, to support their teetering but otherwise healthy economies.

Peter Pan's picture

My prediction: New Democracy will win the election and form government with SYRIZA falling into line. Stock market will post around a 20% rise and gold will drop around $59. This ofcourse is just for the first week. Things should settle down and get back to the usual panic very very soon after that.

davinci7_gis's picture

During WWII the Germans just about starved the Greeks to death...I think it's going to be a repeat of that!

andrewp111's picture

After the Grexit, Greece will have only one source of foreign exchange - sexual tourism catering to Germans. And I'd bet that old Strauss Kahn himself will be the kingpin pimping the Greek boys and girls to all those guys named Gunther and Wolfgang.

Peter Pan's picture

Many Greeks are already hungry and children are fainting in class while at school. Food assistance from Europe is not far off. Austerity will be parked in a side street and new handouts for Greece are coming.

ZerOhead's picture

Great Zeus!!!

That burn rate is faster than an Apollo Saturn V moonshot!

Cognitive Dissonance's picture

All your Greek Gods are belong to us.

(And everything else for that matter.)

Sudden Debt's picture

I've heard Aphrodite is of the slutty kind...
You get to have zeus...

Peter Pan's picture

Yes, you do own everything, including the humanitarian disaster that is unfolding in Greece. Do you still feel good?

BeetleBailey's picture

....THATS' why it always "french and greek" in the old smut swinging books....

sunaJ's picture

ZH Dictionary:  Sprinting. (n)  1. CB printing at hyperinflationary levels.


We're almost in the home stretch!  Yaw, mule!

whatsinaname's picture

Blackrock hires Philipp Hildebrand.

Swiss Cheese.

Joe Davola's picture

All your bits are belong to us.

Mercury's picture

Well, that’s the thing.

These guys write a lot of good stuff but from what I’ve read so far here, they’re a little too cheery and optimistic about how digital money = Progress!

Joe Davola's picture

I'm a EE, and when that issue of Spectrum arrived I cringed alot. I'm no gold bug, but medieval alchemists aside - no one has ever counterfeited gold.


Worst of all was when I read an advertisement from my employer (unrelated to digital cash) - marketing must have had a keg at their weekly unicorn roast on the day that ad was written.

Mercury's picture

Ha!  I think I know which one you mean...

pods's picture

Counterfeited no, re-re-re-hypothecated yes.


Vegamma's picture

All your bits are belong to us

But all you Brits get to stay free because you didn't fall for my little Euro trick.

jal's picture

Greek banks are bankrupt.

Let me say it another way they do not have any money.

Let me say it another way.

Who is supplying the money to give to the depositors.

The greek banks do not have any money to give back to who ever is supplying the money for those deposits.



Papasmurf's picture

Courtesy, inkjet technology.

andrewp111's picture

The ECB is keeping those ATMs stuffed through ELA .

vegas's picture

If you got some FB stock and plenty of ouzo on hand, what do you need money in a Greek bank for? Duhhhhh.

Papasmurf's picture

Have you taken delivery of your FB certificates?   I thought not!

GS-DickinDaMuppets's picture

Gene - don't you mean "?????????" ?  I think so...



JoeStocks's picture

Just a little faster as funds flowing out of equity funds here. Another outflow just reported for this week;

Estimated Long-Term Mutual Fund Flows
June 13, 2012

Washington, DC, June 13, 2012 - Total estimated outflows from long-term mutual funds were $1.37 billion for the week ended Wednesday, June 6, the Investment Company Institute reported today. Flow estimates are derived from data collected covering more than 95 percent of industry assets and are adjusted to represent industry totals.

Estimated Flows to Long-Term Mutual Funds
Millions of dollars   5/9/2012 5/16/2012 5/23/2012 5/30/2012 6/6/2012 Total Equity -1,214 -3,483 -6,994 1,584 -1,731   Domestic -2,255 -3,367 -7,178 906 -3,083   World 1,041 -115 184 678 1,352

Equity funds had estimated outflows of $1.73 billion for the week, compared to estimated inflows of $1.58 billion in the previous week. Domestic equity funds had estimated outflows of $3.08 billion, while estimated inflows to world equity funds were $1.35 billion.


CommunityStandard's picture

Despite the accelerating speed, this is still a very slow train wreck.