| View previous topic :: View next topic |
| Author |
Message |
Reggie
Joined: 21 Sep 2009
|
 Posted: Thu Feb 24, 2011 10:49 am Post subject: Bank Runs in South Korea |
 |
|
| Quote: |
| �The fears of depositors are mounting, which could lead to bank runs at a number of savings banks, and it could eventually spread to the entire savings bank industry,� said Jung Sung-tae, a researcher at LG Economic Institute. |
http://www.zerohedge.com/article/bank-run-korea
| Quote: |
| As South Korea�s regulators try to head off a run on the nation�s savings banks, Financial Services Commission Chairman Kim Seok-dong has been taking the message to the people � and putting his own money into one of the banks |
http://blogs.wsj.com/exchange/2011/02/21/korean-officials-seek-to-head-off-bank-run/
| Quote: |
| The largest South Korean savings bank in terms of assets, Busan Savings Bank, had their operations suspended Saturday due to an old fashioned bank run where panicked depositors stopped believing their government that there was no imminent financial crisis and the system was stable. |
http://johngaltfla.com/blog3/2011/02/20/let-the-world-wide-bank-runs-begin-first-up-south-korea/
| Quote: |
| The quietest bank run that has so far completely evaded mainstream attention, that of Korea, is spreading, and an eighth bank has now shuttered after "Domin Bank, a savings bank with a capital adequacy ratio below 5 percent, voluntarily decided yesterday to suspend its operations temporarily because of massive withdrawals." |
http://www.zerohedge.com/article/korean-bank-run-spreading-eighth-bank-closes-following-massive-withdrawals |
|
| Back to top |
|
 |
ThingsComeAround
Joined: 07 Nov 2008
|
| Posted: Thu Feb 24, 2011 4:00 pm Post subject: |
|
|
Interesting.
I have an account with one of the savings banks, Tomato, and my earnings are due to mature next month-
They did send a text to help "relax" me that my money was safe. I didn't even know anything was going on until that. Must say- I don't feel so relaxed  |
|
| Back to top |
|
|
PigeonFart
Joined: 27 Apr 2006
|
| Posted: Thu Feb 24, 2011 4:20 pm Post subject: |
|
|
That's understandable that you feel nervous, and that's part of the problem.
When everyone is nervous their behavior changes and they (create a self fulfilling prophesy) all withdraw their money and bring down the bank.
The banks and government should do more to reassure you (more than a text message). The slighest hint of fear in the bank customers can spiral out of control. I'm sure all will be fine though. |
|
| Back to top |
|
|
atwood
Joined: 26 Dec 2009
|
| Posted: Thu Feb 24, 2011 6:27 pm Post subject: |
|
|
| PigeonFart wrote: |
That's understandable that you feel nervous, and that's part of the problem.
When everyone is nervous their behavior changes and they (create a self fulfilling prophesy) all withdraw their money and bring down the bank.
The banks and government should do more to reassure you (more than a text message). The slighest hint of fear in the bank customers can spiral out of control. I'm sure all will be fine though. |
Why?
The savings banks are obviously taking on more risk to pay account holders up to double the interest of regular banks. Do you think they have all successfully hedged that risk?
Are these accounts insured by the government? |
|
| Back to top |
|
|
eamo
Joined: 08 Mar 2003
Location: Shepherd's Bush, 1964.
|
| Posted: Thu Feb 24, 2011 6:30 pm Post subject: |
|
|
| Damn! All my savings are in HappyBankPia! I hope they're ok..... |
|
| Back to top |
|
|
s10czar
Joined: 14 Feb 2010
|
| Posted: Thu Feb 24, 2011 9:00 pm Post subject: |
|
|
| Is there anything like FDIC Insurance here??? |
|
| Back to top |
|
|
Chris.Quigley
Joined: 20 Apr 2009
Location: Belfast. N Ireland
|
| Posted: Fri Feb 25, 2011 10:54 am Post subject: |
|
|
| s10czar wrote: |
| Is there anything like FDIC Insurance here??? |
I was about to ask the exact same thing. |
|
| Back to top |
|
|
AsiaESLbound
Joined: 07 Jan 2010
Location: Truck Stop Missouri
|
|
| Back to top |
|
|
Died By Bear
Joined: 13 Jul 2010
Location: On the big lake they call Gitche Gumee
|
| Posted: Fri Feb 25, 2011 8:49 pm Post subject: |
|
|
| Interesting that a couple of years ago they caught a burglar that was hitting a really expensive area of Seoul (can't remember the location) and got a lot of news attention - because the crooks know that many older Koreans that have a lot of money don't trust banks and keep all their valuables and money in their homes. Don't ask me for a link, I remember the conversations I had with Koreans about this, so I can't link proof. |
|
| Back to top |
|
|
rickpidero
Joined: 03 Sep 2009
|
| Posted: Fri Feb 25, 2011 9:37 pm Post subject: |
|
|
| Doesn't bode well for the Ponizi scheme we have all come to love known as Key Money. |
|
| Back to top |
|
|
jvalmer
Joined: 06 Jun 2003
|
| Posted: Sat Feb 26, 2011 1:58 am Post subject: |
|
|
| Died By Bear wrote: |
| Interesting that a couple of years ago they caught a burglar that was hitting a really expensive area of Seoul (can't remember the location) and got a lot of news attention - because the crooks know that many older Koreans that have a lot of money don't trust banks and keep all their valuables and money in their homes. Don't ask me for a link, I remember the conversations I had with Koreans about this, so I can't link proof. |
Asian immigrants to the US/Canada in the past would keep huge amounts of cash in their homes ($100,000 to a few million), because of their lack of faith in banks in their home countries. Home invasions often targeted these new immigrants. |
|
| Back to top |
|
|
chungbukdo
Joined: 22 Aug 2010
|
| Posted: Sat Feb 26, 2011 10:20 pm Post subject: |
|
|
Does that cover these savings banks too?
Dont see what the trouble is then. If you lose your money the people who were intelligent and responsible with their money will bail you out through government liquidity injections so I see no reason to exercise caution with any bank. |
|
| Back to top |
|
|
jvalmer
Joined: 06 Jun 2003
|
| Posted: Sat Feb 26, 2011 11:50 pm Post subject: |
|
|
| chungbukdo wrote: |
Does that cover these savings banks too?
Dont see what the trouble is then. If you lose your money the people who were intelligent and responsible with their money will bail you out through government liquidity injections so I see no reason to exercise caution with any bank. |
One problem is that you probably won't see your money for 6 months, when they sort everything out. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
