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Korean Bank Run: 8th Bank Closes
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Epik_Teacher

Joined: 28 Apr 2010

Posted: Tue Feb 22, 2011 7:08 pm Post subject: Korean Bank Run: 8th Bank Closes

Quote:

Korean Bank Run Spreading: Eighth Bank Closes Following "Massive Withdrawals"
Submitted by Tyler Durden
02/22/2011

http://www.zerohedge.com/article/korean-bank-run-spreading-eighth-bank-closes-following-massive-withdrawals#comments

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." As JoongAng reports: "The decision took both depositors and financial regulators by surprise since it was the first time that a local bank shut its doors on its own." Apparently the courageous decision by the Financial Services Chairman Kim Seok-dong to deposit $17,864 in a troubled bank has not done much if anything to prevent the locals from realizing that their banking system is built on a house of cards.

jvalmer

Joined: 06 Jun 2003

Posted: Tue Feb 22, 2011 7:30 pm Post subject:

So basically all these little banks are going bust while the 5, or so, big boys sit around waiting to scoop up new customers.

NohopeSeriously

Joined: 17 Jan 2011
Location: The Christian Right-Wing Educational Republic of Korea

Posted: Tue Feb 22, 2011 8:47 pm Post subject:

Yikes, the government wants to privatize all banks and get rid of the smaller weaker ones.

BoholDiver

Joined: 03 Oct 2009
Location: Canada

Posted: Tue Feb 22, 2011 10:30 pm Post subject:

I have heard about this happening recently. The Korean economy isn't too shabby right now. Why did this happen all of a sudden?

jvalmer

Joined: 06 Jun 2003

Posted: Tue Feb 22, 2011 10:32 pm Post subject:

NohopeSeriously wrote:

Yikes, the government wants to privatize all banks and get rid of the smaller weaker ones.

So what's wrong with wanting to privatize banks and getting rid of weaker ones? This is a good thing, trim the fat, to bad for savers though.

RMNC

Joined: 21 Jul 2010

Posted: Wed Feb 23, 2011 3:38 am Post subject:

BoholDiver wrote:

I have heard about this happening recently.

The Korean economy isn't too shabby right now. Why did this happen all of a sudden?

The food chain of finance. After a global recession, the small banks are the ones most affected, percentage-wise. Now that Korea has a decent economy running again, the big banks are consuming the smaller ones who couldn't hit the ground running as fast as the big boys. The runs are probably a combination of the weak capital of the bank and the typical Korean collective mindset, the same one that things turning a fan on will kill you.

NohopeSeriously

Joined: 17 Jan 2011
Location: The Christian Right-Wing Educational Republic of Korea

Posted: Wed Feb 23, 2011 4:00 am Post subject:

jvalmer wrote:

So what's wrong with wanting to privatize banks and getting rid of weaker ones? This is a good thing, trim the fat, to bad for savers though.

This current government under the Rat has done many dodgy things to the financial system. I don't like it.

I love the solid credit union concept in Canada. As a matter of hope I would want well-run credit unions in South Korea.

Louis VI

Joined: 05 Jul 2010
Location: In my Kingdom

Posted: Wed Feb 23, 2011 5:24 am Post subject:

I looked for a big fish from the day I arrived and have banked with them ever since: KB.

Steelrails

Joined: 12 Mar 2009
Location: Earth, Solar System

Posted: Wed Feb 23, 2011 6:28 am Post subject:

RMNC wrote:

BoholDiver wrote:

I have heard about this happening recently.

The Korean economy isn't too shabby right now. Why did this happen all of a sudden?

Yes, because financial behavior such as this has never occurred elsewhere... Rolling Eyes

the ireland

Joined: 11 May 2008
Location: korea

Posted: Wed Feb 23, 2011 7:57 am Post subject:

NohopeSeriously wrote:

I love the solid credit union concept in Canada. As a matter of hope I would want well-run credit unions in South Korea.

There's a credit union a 5 minute walk from my school here. I'm not sure if it's well run or not, but they do exist.

jvalmer

Joined: 06 Jun 2003

Posted: Wed Feb 23, 2011 3:55 pm Post subject:

NohopeSeriously wrote:

This current government under the Rat has done many dodgy things to the financial system. I don't like it.

Just because you don't like the guy doesn't mean his economic policies are bad. He has guided SK quite well past the financial crisis. I do admit his social policies have little to be desired, but economically he's on the ball.

NohopeSeriously

Joined: 17 Jan 2011
Location: The Christian Right-Wing Educational Republic of Korea

Posted: Wed Feb 23, 2011 4:12 pm Post subject:

jvalmer wrote:

He has guided SK quite well past the financial crisis. I do admit his social policies have little to be desired, but economically he's on the ball.

You mean the 4 Grand Rivers project that killed the environment and the agricultural foundations? His policies jacked up the food and gas price. He's also responsible for killing the public school education and turned EPIK upside down.

He didn't do anything. It was the big companies who maintained this country's economy and he got the wrongful praises. Remember, his support groups are not the voters of this country but from big businesses. This is why he can only maintain himself as an empty figurehead of the economic recovery.

Do you know why over half of the population hates him? Even the right-wing Chosun-Ilbo who supports him now turns its back against him? http://www.mediatoday.co.kr/news/articleView.html?idxno=93929

One more thing: My dad (middle age divorcee and still a Korean citizen) and my grandparents regret voting for Lee Myeong Bak as his policies put the senior health safety-net into risk.

jvalmer

Joined: 06 Jun 2003

Posted: Wed Feb 23, 2011 4:27 pm Post subject:

NohopeSeriously wrote:

jvalmer wrote:

He has guided SK quite well past the financial crisis. I do admit his social policies have little to be desired, but economically he's on the ball.

No point trying to convince you, it would be like talking to a wall. I think 2MB had done a decent job.

NohopeSeriously

Joined: 17 Jan 2011
Location: The Christian Right-Wing Educational Republic of Korea

Posted: Wed Feb 23, 2011 4:37 pm Post subject:

jvalmer wrote:

No point trying to convince you, it would be like talking to a wall. I think 2MB had done a decent job.

Which means you can't make any good point other than "2MB did a good job only for the economy". Confused

pkjh

Joined: 23 May 2008

Posted: Wed Feb 23, 2011 5:21 pm Post subject:

NohopeSeriously wrote:

Yikes, the government wants to privatize all banks and get rid of the smaller weaker ones.

What do you expect them to do? Prop up banks that are hemmoraging money because of their bad decisions?

Anyways, this isn't meant to be offensive, but English is not your first language?

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