Rumor Of Swedbank Failure Results In Second Latvian Bank Run In One Month

Tyler Durden's picture

Two weeks ago we presented pictures of a bank run in Latvia after one local bank had been found to do just what MF Global is alleged of doing - gross commingling. To wit: "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....Depositors can withdraw 50 lati a day beginning today for the rest of the week, said Krumane at a pressconference." 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." Sure enough, as nothing has changed, either in Latvia or the US, things just got worse. Following a rumor in Latvia that the large Swedish bank Swedbank is about to collapse, Latvia has just experienced its second bank run in under a month.

Video of people lining up at ATM and branches:

Google translated from E24.no

Latvian customers of the Swedish large bank Swedbank has through the weekend emptied ATMs in several areas. This after rumors that the bank is about to collapse.

 

This confirms several sources in Latvia to E24, as well as communications director Thomas Backteman in Swedbank.

 

- Yes, it is true that there is greater activity against ATMs in some regions of Latvia, said Backtemann to E24 Sunday evening.

 

The Swedish bank Swedbank is one of Europe's largest banks, and in Norway owns the brokerage, First Securities.

 

When customers begin to withdraw savings from a bank, this is called a bank run . Since a bank can not muster all the money that is on savings accounts at short notice, is a silk incident very dramatic for a bank.

There are conflicts view about the severity of the actual run:

Backtemann think what happens is very undramatic:

 

- I would not call it a bank run. We are talking about small amounts in a few regions in Latvia, but not in Riga.

 

This disproves the Norwegian Tor Bernhard Slaathaug, who works and lives in Riga:

 

- ATMs of Swedbank around the corner from me is empty, and there is no congestion at other ATMs in the area, he says to E24.

 

Slaathaug has posted pictures of empty Swedbank ATMs here , and here and here and here .

 

- People are worried, after Krajbanka emptied bank guarantee fund, and thus is of course the people concerned. If a new bank tipped over, it will have serious consequences, says Slaathaug to E24.

Regardless of just how severe the event ends up being, isolated incidents like these occuring increasingly more frequently will do nothing to reinforce the public's confidence that the financial system is actually stable. And all it will take is one such rumor and/or one bank run in a major "developed nation" for things to begin unwinding.Unfortunately, with the global financial regime only focused on the symptoms and never the underlying causes of the problem, more such pictures of empty ATMs in the near future are virtually assured.

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nwskii's picture

Swedish Meatballs bitcheZ

Ahmeexnal's picture

When there's a maggot, expect a whole bunch of them.

Oh yeah, and a fucking dead decomposing carcass.

q99x2's picture

If US politicians want to get re-elected and can't arrest the bankers because they control the courts then may I suggest they use the National Defense Authorization Act to put the financial terrorists away. That would secure their election although they might have to find a new source for their campaign contributions.

They might solicite the big yellow headed hermaphrodite that runs back and forth in the tunnels beneath Brown Brothers Harriman. Well Fargo and the New York Fed. I believe the creature is about to turn tail on the bankers.

BaBaBouy's picture

The Biggest Dirtiest Carcasses are still in the USa...

 

They have a big Tarp over them, but they are stinking Carcasses nontheless ...

philipat's picture

Um, point of information, Latvia (Capital Riga)is a different country to Lithuania (Capital Vilnius) although they are both "Balltic States" and are neighbours.

grovernors's picture

@ q99x2 I suggest taking away their citizenship. 

"If any citizen of the United States shall accept, claim, receive, or retain any title of nobility or honour, or accept and retain any present, pension,office, or emolument of any kind whatever,from any emperor, king, prince, foreign power, or secret society, such person shall cease to be a citizen of the United States, and shall be incapable of holding any office of trust or profit under them, or either of them." tona2009 dot com.
americanspirit's picture

Would that apply to the Nobel Peace Prize awarded by the King of Sweden?

Michael's picture

Dr Ron Paul doesn't need campaign contributions from those scum, nor would he ever use that piece of shit legislation.

Stoploss's picture

Physical PM holders; prepare..

TheFourthStooge-ing's picture

"I would not call it a bank run. We are talking about small amounts in a few regions in Latvia, but not in Riga."

...yet. I wonder what the sunrise will bring.

 

Ahmeexnal's picture

Dominoe dancing

 

Newsflash.  Peruvian government collapses as Primer Ministro resigns and with him the entire cabinet.

The reason? Conflict has erupted over a GOLD mining project in Peru. State of emergency has been declared.

http://www.nzz.ch/nachrichten/politik/international/regierungskrise_in_p...

Kali's picture

This is big news.  I remember earlier this year, small (individuals) native populations in Columbia ran afoul of the US occupied PTB there, when they were mining in their native lands.  The gov proclaimed these native peeps were backing FARC and started driving off the people and giving the land to corporations.  This has been going on for awhile now, throughout mining regions in SA.  But toppling a "friendly" government?  WOW, things are getting close to all out chaos.

Do Chen, you have any info?

Doña K's picture

These guys do that every December to consolidate power. Nothing to see here. By Peruvian law once one minister resigns the gov. gets reshuffled.

Ahmeexnal's picture

Could it be that "El Chino" is behind this latest "uprising"?

Kali's picture

Trying to verify now.  Waiting for response.  The frictions with the govs and gold mines is an old one, is same with small govs anywhere who have something of value the PTB wants.  Who gets to benefit from the mine?  Recently, many govs have been trying to get a better deal for their citizens.  We all know who doesn't want that to happen.  Is why many pols get tossed aside like used toilet paper.  If they try to change the tune, a "revolution" happens and the new, more "cooperative" gov gets installed.

Doña K's picture

Everything is possible in S.A. The CIA may reinstall him yes. Why would he leave a perfectly safe harbour in Japan?

High Plains Drifter's picture

dominoes all in a row.........

Mr. Fix's picture

$95 a day?  That sucks!

Bobbyrib's picture

A lati is worth more than a dollar!? Man, we need to end the Fed.

Ahmeexnal's picture

A latte is certainly more than a dollar. Specially if it's a venti.

JPM Hater001's picture

What, so he can get a hooker and some tequila? 

Temporalist's picture

Get your paper before it burns!  Then buy Au and Ag because they never do!

sabra1's picture

well, at least here in the states, green monday will be a huge success, following, will be this coming, frantic friday!

 

Caviar Emptor's picture

It can start with a small, seemingly insignificant financial institution...There's never just one weed in the garden

chump666's picture

Yes, EZ banks margins must be sick and close to death. I would have though Scandinavian banks were relatively healthy.  But, overall they bought up huge amounts of Greek toxic sh*t.  Therefor I think that the Bond auctions this week for Italy and Spain will be very poor on banks unloading EU debt again...the weakness (total EZ bank insolvency) could be the begining of EZ CDS nightmare.

Should see some EZ liquidation.

Nasty.

bob_dabolina's picture

Arrest warrants? 

We will never see those in America for bankers.

djsmps's picture

According to a CNBC report on NBC News tonight, tomorrow will be the biggest shipping day in history, and this will be the biggest holiday season ever.  I dread going out during holidays because of traffic, but I drove by a usually busy Walmart around 12:30 today. It didn't look any busier than any other non-holiday day.

Ahmeexnal's picture

That means benny's helicopters will start raining 1000 dollah bills with a smiling Ogolfer on the obverse and  "HOPE AND CHANGE" on the reverse.

TheFourthStooge-ing's picture

...and in very small print: "THIS NOTE LEGALLY OBLIGES YOU FOR ALL DEBTS, PUBLIC AND PRIVATE"

 

Long-John-Silver's picture

When will we get circulating $1,000 USD Bills? It's easier walking around with a Gold Eagle in a pocket than 17 $100 bills.

unununium's picture

They want you using a debit card, slave.

Conrad Murray's picture

Mount Mises is 500 feet deep in snow at Crack-Up Boom Point, and yet these wondrous little snowflakes continue to delicately land and pile higher somehow. But, that's not Benny B on the horizon in the helicopter flying above looking to drop crates of 100s, it's Poincare looking to strategically drop a stick of dynamite.

PulauHantu29's picture

Lets import a few prosecutors from Latvia...get things done!

WonderDawg's picture

Hey, Caerus, you out there? Got a question for you if you read this. Take a look at the Nike chart and see if it looks interesting for any reason. Thanks.

Your pal and protege,

Dawg

DormRoom's picture

brokers no longer sell assets to help increase investor wealth.  These days brokers sell, so they can survive to the next market day.  Which means, they will assets they know are toxic.

It's a game of survival now. VAR models will break.  Do not be the one left holding the bag.

 

 

Cassandra Syndrome's picture

Rindas pie Bankomatiem bitchiaz

Debugas's picture

3 years ago Parex bank in Latvia collapsed

just two weeks ago latvian Krajbank collapsed (together with its parent bank Snoras in neighbouring Lithuania)

People there completely lost their trust in the banking system.

Will be interesting to see what will happen on Monday when the bank offices open

 

 

http://www.db.lv/finanses/bankas/swedbank-klienti-panika-daudzviet-banko...

http://www.db.lv/citas-zinas/swedbank-aktivi-papildinam-bankomatus-bauma...

Ahmeexnal's picture

Isn't Lavtia where Santa Claus and his merry band of drunken little leprechauns are established?

UP Forester's picture

You're thinking Lappland, a little farther north with more reindeer.

Cdad's picture

That simply cannot be happening...not now.  I don't believe it.

We are in recovery.  The season of shopping is upon us, and retails sales have been "beating expectations."  There is "cash on the sidelines" and it cannot wait to jump in.  Why, for two straight weeks now, "investors" have been so anxious to buy stocks, they buy them up 1 and 2% when the opening bell rings.  Even Santa is coming to town, a great big rally in his bag, handing out equity mark ups to all the brokers, as America miraculously "decouples" from the European issues. /sarc off

And while the American people suffer the highest rate of unemployment this country has seen since the Great Depression I, and as the Federal Reserve bank erodes their purchasing power through money printing, and European sovereigns are sporting interest rates at 15 year highs, and interbank lending is freezing up, and bank runs are beginning, and global investment houses announce bankruptcy...all with the US Congress in debt to the tune of $15.1 trillion smackers.

Wall Street needs some new front men, I think.  This nonmarket and this absurd happy story line, when seen in the context of the actual news [hat tip Tyler], is making the current crop of criminal syndicate Wall Street brokers and the stooges in the MSM look unqualified to sell shoes at Foot Locker.  

Kali's picture

But, but no one saw it coming.

Canaduh's picture

It's different this time

 

Schmuck Raker's picture

Bank runs are just transitory phenomena...

Roscoe's picture

I can't wait to see what arcane multisyllabic financial or government shennanigan will befall us next. I mean, rehypothification? Really? Why not shnitflotzmonactitation? See, I can do it too! I just don't have the underhanded motive and cold black heart, or the cancerous crony network, or the fake reconstipated funds to execute the plan.

This whole thing is devolving into some bizzare scrabble game where the final winnng word will mean "The mandatory process whereby all sheeple are ordered to report to the processing station to be turned into tasty food wafers for the Bernakatons." If I didn't know better, I'd think I was trapped in a Warner Bros cartoon, waiting for bugs to get a fresh supply of portable holes and instant giants to save us from Marvin the Martian or Elmer Fudd.

We're so F'd... Oh, wait we're not! The futures just turned green! We're going to be ok for another millisecond! Woohoo, put me down for an iPad and a big box of Godiva chocolates, Let's party like it's 1929!

Sheesh. If it weren't for TD and the gang here at ZH I'd probably start believing that the captors made a lot of sense and start wending my way towards the processing station.