Tag Archive: BANK RUN



The Italian financial meltdown that we have been waiting for has finally arrived. For quite a long time I have been warning my readers to watch Italy, and now people are starting to understand why.

Italian banking stocks continued their collapse for a fifth consecutive day on Wednesday, and nervous Italians are beginning to quietly pull large amounts of money out of the banks.

In particular, Monte dei Paschi is a complete and utter basket case at this point.

http://etfdailynews.com/2016/01/21/a-run-on-the-banks-begins-in-italy-as-italian-banking-stocks-collapse/

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Greece to introduce capital controls, keep banks shut as crisis deepens

Greece will introduce capital controls and keep its banks closed on Monday after international creditors refused to extend the country’s bailout and savers queued to withdraw cash, taking Athens’ standoff to a dangerous new level.

The Athens stock exchange will also be closed as the government tries to manage the financial fallout of the disagreement with the European Union and the International Monetary Fund.

Greece’s banks, kept afloat by emergency funding from the European Central Bank, are on the front line as Athens moves towards defaulting on a 1.6 billion euros payment due to the International Monetary Fund on Tuesday.
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Greece blamed the ECB, which had made it difficult for the banks to open because it froze the level of funding support rather than increasing it to cover a rise in withdrawals from worried depositors, for the moves.

Prime Minister Alexis Tsipras said the decision to reject Greece’s request for a short extension of the bailout program was “an unprecedented act” that called into question the ability of a country to decide an issue affecting its sovereign rights. “This decision led the ECB today to limit the liquidity of Greek banks and forced the central bank of Greece to propose a bank holiday and a restriction on bank withdrawals,” he said in a televised address.

Amid drama in Greece, where a clear majority of people want to remain inside the euro, the next few days present a major challenge to the integrity of the 16-year-old euro zone currency bloc. The consequences for markets and the wider financial system are unclear.

Greece’s left-wing Syriza government had for months been negotiating a deal to release funding in time for its IMF payment. Then suddenly, in the early hours of Saturday, Tspiras asked for extra time to enable Greeks to vote in a referendum on the terms of the deal.

Creditors turned down this request, leaving little option for Greece but to default, piling further pressure on the country’s banking system.

The creditors want Greece to cut pensions and raise taxes in ways that Tsipras has long argued would deepen one of the worst economic crises of modern times in a country where a quarter of the workforce is already unemployed.

Pro-European Greek opposition parties have united in condemning the decision to call the referendum on the bailout terms, but many people are supportive.

“I want him (Tsipras) to knock his fist on the table and to say ‘enough!’,” said Athens resident Evgenoula.

Many leading economists have voiced sympathy with the Greek government’s argument that further cuts in spending risk choking off the growth which would give Greece some prospect of servicing debts worth nearly twice its annual national income.
Related Coverage

› How much Greece owes to international creditors
› Fact box: Political scenarios for Greece as it heads to referendum
› Greek council recommends shutting banks for six working days

The IMF has pressed European governments to ease Athens’ debt burden, something most say they will only do when Greece first shows it is trimming its budget.

STOCKING UP ON CASH

Long lines formed outside many ATMs on Sunday, including some of 40 to 50 people outside some in central Athens.

The Bank of Greece said it was making “huge efforts” to ensure the machines remained stocked.

The German foreign ministry said tourists heading to Greece should take plenty of cash to avoid possible problems with local banks and some tourists said they were joining the ATM queues.

“I am trying to go over to the bigger banks,” said Cassandra Preston, a Canadian tourist. “I am here for another month and I would like to make sure I have some cash on me.” READ MORE

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ASSOCIATED PRESS – NOVEMBER 9, 2013, 2:36 PM EST2208

NEW YORK (AP) — Federal prosecutors want Bank of America Corp. pay about $864 million over losses incurred by the government after it bought thousands of home loans made by Countrywide Financial during the housing boom.

U.S. attorney Preet Bharara made the request in documents filed late Friday with the U.S. District Court in Manhattan.

A jury last month found Bank of America Corp., which acquired Countrywide in 2008, liable for knowingly selling thousands of bad home loans to Fannie Mae and Freddie Mac between August 2007 and May 2008.

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The panel also returned the verdict against Countrywide and a former executive, Rebecca Mairone.

The trial related to mortgages the government said were sold at break-neck speed without regard to quality as the economy headed into a tailspin.

The government had accused the financial institutions of urging workers to churn out loans, accept fudged applications and hide ballooning defaults through a loan program called the Hustle, shorthand for high-speed swim lane, which operated under the motto, “Loans Move Forward, Never Backward.”

Bank of America, based in Charlotte, N.C., denied there was fraud.

Thousands of loans made through the Hustle program were sold to Fannie and Freddie, which packaged loans into securities and sold them to investors. The companies were effectively nationalized in 2008 when they nearly collapsed from mortgage losses.

In the filing Friday, Bharara asked the court to make the penalty on BofA equal to the maximum losses racked up from the Hustle program by the government-run mortgage buyers.

Bank of America spokesman Lawrence Grayson said Saturday that the lender plans to respond to the government’s penalty filing before a Nov. 20 deadline.

“We believe the filing overstates the volume of loans and the appropriate measure of damages arising from one narrow Countrywide program that lasted several months and ended before Bank of America acquired the company,” he said.

Bharara also wants the court to impose a penalty on Mairone — who prosecutors say was the driving force behind the Hustle program — that is in line with her ability to pay.

Mairone’s lawyer, Marc Mukasey in New York, said Saturday that he intends to file papers with the court arguing there should be no penalties imposed on his client.

Countrywide, once the country’s largest mortgage lender, played a major role in the collapse of the housing market because of its heavy reliance on subprime mortgages. Facing serious financial challenges, it was acquired by Bank of America in 2008 in an all-stock deal valued at about $4 billion.

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In 2010, Bank of America agreed to pay $600 million to settle class-action lawsuits claiming that Countrywide officials concealed mounting financial risks as they loosened lending standards during the housing boom. That same year, former Countrywide CEO Angelo Mozilo agreed to pay $67.5 million to settle accusations by the Securities and Exchange Commission that he had misled investors and engaged in insider trading.

http://talkingpointsmemo.com/news/bank-of-america-facing-864-million-fine-after-mortgage-fraud-verdict





A clip from a much longer interview…

Investor Kyle Bass discloses his discussion with a senior Obama admin about how this economic crisis is going to play out. The answer is to export our way out of this mess by making our exports cheaper by destroying the dollar in a global game of currency devaluation. This simply means that they are going to print more and more dollars until all of your purchasing power is destroyed and you will need more and more dollars to buy the same amount of goods. (ie. Massive Inflation.)


I can’t even begin to describe how serious all of this is. From now on, when major banks fail they are going to bail them out by grabbing the money that is in your bank accounts. This is going to absolutely shatter faith in the banking system and it is actually going to make it far more likely that we will see major bank failures all over the western world.
BANK ROBBERY
READ ON….


WELL IT Had to happen didn’t it, looks like people are getting together to do a synchronised Bank run, would you trust the buggers with your cash?

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