Pictures From A Latvian Bank Run As MF Global Commingling Comes To Town

Tyler Durden's picture

If anyone is wondering why the collapse of MF Global after the discovery of its commingling and theft of client funds was the single worst thing that could happen to market confidence, then look no further than the small Baltic country of Latvia where precisely what Jon Corzine's firm did to its clients, has happened at the bank level. Businessweek reports: "Lithuanian prosecutors issued an arrest warrant for Vladimir Antonov and Raimondas Baranauskas who are former shareholders of Bankas Snoras AB. Both men are suspected of embezzlement and document forgery, the Prosecutor General said in a statement on its website today. Baranauskas is also suspected of accounting fraud and abuse of authority, it said." Kinda like Jon Corzine, if not by the actual authorities, then by everybody else. And just like in the US where the lack of confidence in the system following the MF filing, so in Latvia the people have decided to hit the ATMs first and ask questions later. "“This money was the bank’s clients’ money,” said Irena Krumane, head of Latvia’s bank regulator, on Latvian Television last night. Krajbanka will most likely be liquidated because the bank doesn’t have the resources to meet depositor and creditor demands unless the Lithuanian government decides to recapitalize the lender, said Janis Brazovskis, the lender’s administrator, in an interview with Latvian Independent Television program 900 Seconds today...Depositors can withdraw 50 lati a day beginning today for the rest of the week, said Krumane at a press conference." At today's rate this is about $95. Which is why what happened next, as shown in the pictures below, was to be completely expected, and is a perfect indicator of the collapse in liquidity and credibility of our own system where commingling, unlike in Latvia, goes unpunished.

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kill switch's picture

Next teller please..

Harlequin001's picture

The problem with gold is it's boring.
There's none of this...

Haywood Jablowme's picture


Great place to open up a hot dog stand.  "Never let a serious crisis go to waste."  ~ Rahm Emanuel



flacon's picture

We don't even use money any more - not even currency, not even paper... we just use our imagination. Imaginary. 

trav7777's picture

Time to set up a "taking hot chicks out of this shithole" stand near there with some FRNs in a display case

Ethics Gradient's picture

You've been there, then!

I'm guessing whoever junked you hasn't.

SilverRhino's picture

LOL .... capitalism striking while the iron is hot. 

Gauthijm's picture

Hi Trav


what's a FRN ?


Btw, have you been there, need a hot chick from there, as you mentionned, if she'll come with me

I've got guns, ammo, gold , and food

Just missing the other necessity of life, see above :)


Inquiring minds (me!) wnat to know

Take care


QuantumCat's picture

Federal Reserve Note... CASH.  Bank runs = deflation = CASH is King.  A severe deflationary crash will try to part you from your gold and anything else not bolted down.

QuantumCat's picture

Thumbs down?  Reread my comment... it is not anti-gold.  Deflation is the process of wealth extraction.  Linear thinkers are idiots.  

Gief Gold Plox's picture

Thumbs? No, that would be youtube :)

boiltherich's picture

Quantum, do not sweat the red arrows, there is a troll on the loose that is red arrowing almost everything, and some posters no matter what they post. 


For the layman in the simplest terms inflation= too many dollars chasing too few goods, and the inverse is deflation with too few dollars chasing too many goods.  Of course both imply the supremacy of supply and demand, and at root that law of supply/demand has not been repealed though the MSM would have you think otherwise. 

For decades governments/banks created trillions of dollars worth of productive resources, mostly in cheap labor nations like and especially China, factories cranking out everything.  While at home they were cranking out housing and getting anyone with a pulse to sign on the dotted line, KNOWING that it was a bubble and the signatory would either not be able to or not be willing to pay half a mil for a tract house.  In the end the creators of the bubble would end up with all the assets. 

The Fed for it's part has created trillions of bucks since then which would make you think AH HA, too many dollars, inflation!  And there has been some inflation for the consumer, though not as bad as the seventies YET.  This is because they created trillions as did the banksters but it has been fenced in to their little world and not fire hosed the streets with green ink.  The exception to that has been that the government has been deficit spending to the tune of more than a trillion per year which has been monetized and hits the public because ALL government spending returns to you and me.  We get the government bucks and spend it, that makes prices rise if the budget is not balanced because for stable prices as much needs to be taxed out of public pockets as the government puts into the street economy.  In a simple for this just means for stable prices you have to have a balanced budget that adds a few sawbucks to accommodate increase retained earnings, in other words the durable stuff we make that has value. 

You know the currency is meaningless, and thus prices for things like your food, your labor, your house, your local government and your kid's education, all are ditto meaningless -   you know they are meaningless when TPTB have to change the accounting rules in order to prevent a collapse of the economy, so most of us at ZH date our absolute pure surety that the collapse was inevitable from the day they changed mark to market rules for securities to a more liberal mark to unicorn dick.  Fiat does not have to be mismanaged, it does not have to be unbacked, it does not have to be dishonest, but greed seems to always win, when they changed the accounting rules money no longer met the three basic requirements of "MONEY." 

QuantumCat's picture

I'm not really worried about the red arrows.  I think there is a feeling that gold is a panacea, and any opinions to the contrary are attacked.  I do believe that gold is real money and will eventually return to help stabilize currency.  I think this will also limit the amount of credit that can be extended by central banks/banks which results in the debt-fueled problems you mention above.  This will force governments and the people to engage in economic transactions that require appropriate risk decisions (counter party risk, etc) outside of moral hazard, and in the end, we will have manageable and more frequent natural cycles in the economy.  Unfortunately, we have had nearly 70 years with almost no significant period of deflation... and the debt overhanging the system cannot be supported by the velocity of money, regardless of Fed printed reserves. With people using credit to buy gold and silver, they are causing more problems by using the Fed's poison.  If you notice, gold and silver have been correlating more and more with equity markets for precisely this reason.   That's why I believe a deflationary bust is first required before real money can return and a true hyper-inflation can occur.

CPL's picture

Federal reserve note.


Right now it's cheap and plentiful wallpaper.

walküre's picture

The "hot chick" in picture #5 looks like she's willing to go anywhere with you....

MoneyPowerWomen's picture

don't buy the calf until you've checked out the cow

mccoyspace's picture

unfortunately, the 5th picture down shows what happens to the hot chicks from there.

From so many countries, the looks just don't last: poland, greece, russia.... 

live fast, die young, i guess.

Creepy Lurker's picture

Yes, how dare those women age over time.

A Nanny Moose's picture

We use the sqaure root of negative number?

Haywood Jablowme's picture


Well for you lucky lady, I gotta 70's GMC Custom right around the corner.  You want cucumber on that Chicago Red Hot?


Carlyle Groupie's picture

"But nobody's got any money..."

You're missing the point.

The person with the PM's will feast like a king. no?

Harlequin001's picture

You don't queue up at an ATM because you've got your money out now, do you...

Temporalist's picture

That's why you wait NEXT TO the ATM.  So they get there and buy something after waiting in line.


I'd also rent chairs and sell Dr. Scholl's foot pads and powder.  Maybe bring in some of those mall massage people.  Possibly a pay toilet. 


Call the OWS people they know how to handle camping out in public.

upWising's picture





------>             ------>            ------->            -------->                 ---------->

A Nanny Moose's picture

Bread lines to ATM lines in less than 20 years.

flacon's picture

That's also the problem with the Austrian school of economics. How on earth are we supposed to put food on the table if we can't rock the boat so violently that when shit goes flying everwhere we get to scoop it up and put it on our own table to eat? Keynes was doing "God's work". /s

Bananamerican's picture

Bankers are like dogs that eat their own shit...

they can't even help fucking THEMSELVES up

disabledvet's picture

Wal Mart will open banks in the USA if the current crop can't 'get the job done.' So, yes... absolutely..."it can't happen in the USA." It COULD at a far later date and indeed SHOULD happen here of course.

Buck Johnson's picture

Your right, it could never happen here in the good ole US of A.  Things like this happen to THOSE PEOPLE not the chosen country and people.  Trust me, when thiis happens we won't be so civil and in line like that. 

billhilly's picture

Anybody who puts their money in a bank named Bankas Snoras should expect problems !

slaughterer's picture

Looks like the Apple store when a new product is released. 

covert's picture

latvian banks are typically good. maybe it's time to buy some stock just before the coming bailout?


Johnny Yuma's picture

Isn't this really just BofA in a few months?


There are much more civilized bank runs in the west. E-transfers. 

redpill's picture

It's every bank in the country once they announce that FDIC has gone bankrupt.

Ahmeexnal's picture

And you should know that the F (which stands for Federal) in FDIC is as Federal as Federal Express!

redpill's picture

Until of course it goes into US Gov't receivorship and joins the illustrious likes of the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation.

Temporalist's picture

The U.S. has announced the opening of a new non-federal banking facility named FUKD  or the Federal Underwriting Kickback Department.

Abitdodgie's picture

The FDIC only insures 2 cents on the dollar at the moment, and at Bof A deposits are not covered as BofA used all the deposits as collateral . When you make a deposit to BofA it is no longer you depositing money ,you are now loaning the money to the bank, so in reality it is not your mony any more, that why they can tell you to fuck off.

Iam_Silverman's picture

"When you make a deposit to BofA it is no longer you depositing money ,you are now loaning the money to the bank"

True for savings deposits.  Not true for Demand Deposit Accounts.  They are treated as a liability, not an asset.  If things start to look dicey, just transfer ALL of your various savings instruments to checking or other DDA and then withdraw it.  See your individual banks policies on this.  Some friends found this out when they couldn't withdraw all of their money at once from their savings account.

Kaiser Sousa's picture

an announcement would just b a formality...

US govt broke as fuck = FDIC broke as fuck.....

FlyPaper's picture

Bank of America:  Wati a Few months?   I use them as my primary checking institution and have been moving money out for months.  Prepaying bills...

There isn't enough $ for the FDIC to 'rescue' BoA customers without significant US bailout.  BoA may just find TBTF ain't happenin.   Imagine the "confidence perception" when the 5 TBTFs can't reach into uncle sam's pocket, as another TARP is likely to be needed to stem the "crisis."  

Or they'll do what they did in Latvia - they will limit withdraws.

At that point you'll have wished you pulled cash out and stuffed it in your mattress...




krispkritter's picture

Had to cash BoA and Chase cashiers checks the past few weeks.  BoA wouldn't stop pestering me about who I bank with and 'upselling' me their crap. The guy looked at the check about 10 times, had me give him a thumb print on the front of it and produce my license. Finally told him I used to be a customer and then added that if I were him I'd be looking for another line of work, smirked and walked out.  Chase not only wanted to scan my license, they wanted another 'form of id' which turned out to be a credit card. I balked but was assured that it was necessary 'since Cashiers Checks are so easily forged these days'. While of course I was cashing a Chase CC. I also had to give a fingerprint, index this time, on the check. Nice how they may YOU feel like the f'in criminal just for walking in the door with THEIR checks in hand. I'm expecting rubber gloves and lots of bending if this continues. Oh, and the funniest one; USPS money orders. They couldn't even cash a $400 one at the main office in town. Guess they really are broke...

disabledvet's picture

Bonnie and Clyde were far more entertaining. I mean "people waiting in line"? "Staring at the ATM?" Sorry, this type of bank robbery just doesn't do it for me. Don't tell me i'm all alone on this?


The days of bank robbers are over I guess. Now it's just robber banks. 

disabledvet's picture

gives "Robber Barons" a good name...don't these useless..and oh so usual phucks. At least somebody's legacy is secured by all these morons...the only ones that ever had one to begin with. And now we learn "they had better bad guys back then, too."

AngryGerman's picture

looks like latvian are a little bit smarter than MF clients!!! On the other hand, i think JPM does not operate there...