Monday, December 12, 2011

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


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.

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