Business

Are We Seeing a Run on the Greek Banks Right Now?

While it may be too early to tell, initial reports indicate that a bank run could be taking place in Greece.

“Stocks faded in the final hour of trading Tuesday to finish lower after a transcript from the Greek meeting showed deposits leaving the banking system, fueling speculation that the nation might leave the euro zone,” CNBC reports.

If the transcripts are accurate, depositors withdrew approximately €700 million euros ($898 million) from local banks, according to President Karolos Papoulias.

However, CNBC notes, “the exact timing of the transfer was unclear.”

The transcripts also show that Papoulias cited a conversation he had with Greek Central Bank Governor George Provopoulos wherein it was agreed “that the strength of banks is very weak right now,” the Wall Street Journal reports.

“I think people need to prepare for the eventual removal of Greece from the EU and investors are getting ahead of that before they’re forced to,” said Matthew McCormick, vice president and portfolio manager at Bahl & Gaynor Investment Counsel on CNBC’s “Closing Bell.“ ”It’s a political market and an event-driven market.”

Investors have been nervous all day since news broke that Greece has failed yet again to agree on a coalition government.

Update: It has been confirmed that President Karolos Papoulias told party leaders that about $898 million has been removed from the banking system since the May 6 election.

“The situation in the banks is very difficult,” Papoulias said according to a transcript of the meeting’s minutes released by his office. “Mr. Provopoulos told me that of course there is no panic, but there is great fear which could turn into panic.”

Socialist party leader and former finance minister Evangelos Venizelos on Tuesday said the country is “unfortunately” headed for another round of elections, “because certain people coldly put their short-term party interests above the national interest.”

The Associated Press contributed to this story. Updates will be added as they become available.

Comments (37)

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  • florida123
    Posted on May 16, 2012 at 7:31am

    Hang on America! The Fall of Greece will be like dominoes……….Spain, Portugal, Italy, Ireland will follow! This will bring the entire Worlds economy to her knees……….Globalization is already here, dont be caught with your pants down………………

    Report Post » florida123  
    • West Coast Patriot
      Posted on May 16, 2012 at 1:32pm

      What is happening now was predicted by Ron Paul for a long time, but he is a nut, right? He is the only one that would stand up to the U.N. pressure that will be coming soon. Romney, Obama, the same type of politician will cave to them. They will tell us that they tried their best but the economy was too far gone to save. They will tell us the U.N. has the only plan that will save us all. All of you will probably agree with them and stand by idly while our Constituion is thrown in the burn barrell and we come under world rule.

      Paul would tell them to take a flying leap and get out of the U.S. He would bring our troops home where they need to be with what is coming. I wish the lot of you would wake up to the realities of the world instead of listening to the elite tell you that we need to be spread thin. They do not want us to have all our military here, it will be harder for them to take over. Wise up people.

      And, no, Paul is not out of the race, it is a shifting of his campaign plan to get delegates. We supporters are going to be more emboldened at this point.

      Report Post » West Coast Patriot  
  • lukerw
    Posted on May 16, 2012 at 5:41am

    Nationalism… of the Socialist form (Nazism)… cannot be far away! And, all this… alike in Egypt… is Proof that Simple Democracy… leads to Mob Rule… and Does Not Work! Stupid Democrats!

    The American Founders were Geni!

    Report Post » lukerw  
  • TemayElbor
    Posted on May 16, 2012 at 3:20am

    Isn’t it ALARMING that America has been sleeping all along while her economy was plundered slowly?

    And more ALARMING that when the plunderers came, AMERICA doesn’t KNOW how it was plundered nor has a clue as to who are behind it?

    Is it possible that those who are highly educated in ECONOMICS AND FINANCE with Ph.D.s and were previously mentored by renowned professors, are the plunderers? These are the intellectual elites seated in high places of government and have the public trust. They are supposed to be our economic saviors but are they, really?

    It is high time to TEACH OUR CHILDREN ECONOMICS and FINANCE and start with ten-year olds. It is their future that is at stake.

    We have to tell them honestly that currently they now are DEBTORS by presumably $100,000. (estimated amount) and it is growing.

    Report Post »  
  • rsanchez1
    Posted on May 16, 2012 at 3:11am

    Stick a fork in the Euro, it’s done!

    Report Post »  
  • SilentReader
    Posted on May 16, 2012 at 12:19am

    Greece should default, pull out of the EU, and do what Iceland did.

    http://www.guardian.co.uk/business/2012/may/13/greece-leave-eurozone-five-difficult-steps

    Report Post » SilentReader  
  • Netsurfer2
    Posted on May 15, 2012 at 9:54pm

    Oh yessss! You will see that America also funded these countries and will pay dearly for what is to come! We borrowed money form China to pay for the mess in Europe! Now the dominoes are falling and the market is falling because of it! Italy, Ireland, France, Portugal and France will be on the list of societies not worth buying into! It’s just a matter of time when China no longer has faith in the market!

    Report Post » Netsurfer2  
    • Netsurfer2
      Posted on May 15, 2012 at 9:56pm

      Let us not forget the debt of trillions of dollars in which China owns! We can all pay homage to the new world leader! Good luck with that!

      Report Post » Netsurfer2  
  • mtorres20
    Posted on May 15, 2012 at 9:38pm

    Its long awaited let it happen.

    Report Post » mtorres20  
  • donh2
    Posted on May 15, 2012 at 8:41pm

    and the new French president had to turn his plane around for being struck by lightening…..but if you are worried about a Golden Dawn political party founded on a centuries old occult fraternity of ritualized Satan worship YOU are the crack pot lunatic.

    Report Post »  
  • william 123
    Posted on May 15, 2012 at 8:15pm

    California = Greece = America in 2-5 years at the current rate

    Report Post »  
  • GeoInSD
    Posted on May 15, 2012 at 8:12pm

    Given all that has happened in Greece, especially recently, and with some prominent economists predicting a withdrawal of Greece from the Eurozone, it is a surprise there hasn’t been a run on the banks already.

    Report Post »  
  • freedom_gurl35
    Posted on May 15, 2012 at 7:48pm

    I’d pull my money out, too.

    If (more like WHEN) Greece pulls out of the EU, we’re going to see a hot mess in Europe. Not looking good, folks!

    Report Post » freedom_gurl35  
  • Anonymouse.
    Posted on May 15, 2012 at 7:25pm

    Here’s some more news for you chiken littles who think the sky is falling. Smarten up and read. http://www.bbc.co.uk/news/world-europe-18076757

    Report Post » Anonymouse.  
  • zoro51
    Posted on May 15, 2012 at 7:17pm

    gee and they elected NAZIS WOW.. didnt learn form ww2 huh.. OH WELL..

    Report Post » zoro51  
  • GodandCountryMinistries
    Posted on May 15, 2012 at 5:25pm

    Everyone be prepared. The book Preparing for the Coming Collapse of the US Dollar is available for FREE until Thursday this week on Amazon.com. Join us on Facebook so that we can discuss last minute needs for the collapse.

    Report Post » GodandCountryMinistries  
  • BLACKDIAMONDSKIER
    Posted on May 15, 2012 at 5:20pm

    Good thing everyone in Greece was smart enough to prepare for this eventuality???? Well……we can hope anyway……You’ve got to love people who recognize that something along the way smells like sh*& but keep on walking deeper into the darkness until overwhelmed. Then they finally wake up and realize they have walked themselves into the deepest pile of sh*& ever known to man. What is really amazing is how our President still tries to convince the majority of Americans that spending more money (just like the Greeks have done), is the right way to go. It is, however, the right way to go if you desire an outcome that would be devastating for the people of this country.

    Report Post »  
  • KickinBack
    Posted on May 15, 2012 at 5:11pm

    Coming soon to bank near you

    Get your Greek on.

    Report Post » KickinBack  
  • yathink
    Posted on May 15, 2012 at 5:05pm

    It begins. Pick a side and prepare yourselfs. May the Lord Jesus Christ allow the United States of America show the world once again what needs to be done.

    Report Post » yathink  
  • tonydanibradbury
    Posted on May 15, 2012 at 4:56pm

    Does that sudden lump come into anyone else’s throats when reading this? I’ve thought we were prepared for a year or so, but now that question of “Are we really?” keeps coming to the front of my thoughts.

    I’m not worried about the first few weeks and months, like Glenn said last night, it‘s not the crash I’m worried about- it’s the clean-up.

    Report Post »  
  • NOBALONEY
    Posted on May 15, 2012 at 4:44pm

    Mr. Potter (EU), and Spooky Dude have their strategies. Greece’s exit will bring down the Euro, and Spain, Ireland, Italy, Portugal, and France exists will spell the end of the Euro.

    Report Post » NOBALONEY  
    • pscully17
      Posted on May 15, 2012 at 4:54pm

      Good. We need to get.back to the dirty business of individual nationalism! Screw this world global governance bull crap! The cold war was going fine. Obama has to leave, immediately.

      Report Post »  
    • AvengerK
      Posted on May 15, 2012 at 5:44pm

      NOBALONEY…Soros is trying to get the governments in Europe to tear up the EU charters and do whatever is necessary to keep the EU and the Euro intact. Soros is invested in Italian debt very heavily..to the tune of billions. He wants to see the Euro survive. He was betting against America and he lost the bet. Now he wants to do what every good lefty wants to do..tear up any charters and constitutions in your way and impose your will.
      Germany on the other is fighting so hard to keep the EU together because Germany has enjoyed an export boom under the value of the Euro. A return to the Deuschmark would raise the value of German currency by around 20% and price them out of the export markets.
      Special concessions were made for countries like Italy and Greece to join the EU even though their GDP and their debt were way out of safe parameters. Now the Euro-socialists are paying for their folly.

      But make no mistake about Soros…he‘s sweating on losing billions of dollars in Italian debt which is why he’s telling the governments in the EU to give the finger to Brussels, tear up the charters and do whatever they see fit to get their populations into line.

      Report Post »  
    • AvengerK
      Posted on May 15, 2012 at 5:50pm

      Here’s another thing to remember NOBALONEY….China is a big part of the European economy right now. Greece isnt‘ that much of an issue on it’s own but the domino effect of Italy, Spain and France falling aside would have serious impact on Chinese investment in Europe. When this happens we need credible leadership to get us through a Chinese economic realignment. Obama doesnt’ have a clue about how to approach or navigate that type of thing, neither do any of his Keystone Kops cabinet members. You think Geithner would know what to do? When has Timmy ever been right about anything? Or perhaps he should bring back “unemployment won’t go over 8%” Christine Romer and Elizabeth Fauxcahontas Warren?

      Report Post »  
    • OutOfTheAether
      Posted on May 15, 2012 at 6:30pm

      Could the timing of the big meeting of the Spooky Dude, et al in Florida be coincidental? hmmm ya gotta wonder

      Report Post » OutOfTheAether  
  • Leadthemtothelight
    Posted on May 15, 2012 at 4:34pm

    Washington……HELLO!!!!! Are you paying attention? We are Greece… perhaps in our debt crisis puberty. This is who WE are. People are not gonna like the austerity measures coming to the US.
    We must fix this now….like in November, might be a nice step in the RIGHT direction….

    Report Post » Leadthemtothelight  
  • Snowleopard {gallery of cat folks}
    Posted on May 15, 2012 at 4:34pm

    When the EU goes, soon enough the death knell for America will sound off as well.

    Report Post » Snowleopard {gallery of cat folks}  
  • neiman1
    Posted on May 15, 2012 at 4:29pm

    Money in banks will be revalued in Drachmas and money taken out will be in Euros. Only an idiot would leave a deposit in a Greek bank .

    Report Post »  
  • Individualism
    Posted on May 15, 2012 at 4:28pm

    END THE FED let us use the currency we want to instead of those rats who own the banks telling us what to use. there going to get whats coming to them one day just look at Germany.

    Report Post » Individualism  
  • FromSeaToSea
    Posted on May 15, 2012 at 4:28pm

    Greece should walk away from the world banking cartel and leave them high and dry.

    Iceland did this 3 years ago. Today Iceland is thriving.

    As long as the global banking cartel own You, You are a slave.

    Report Post »  
  • nottooshabby
    Posted on May 15, 2012 at 4:27pm

    The first domino is falling. Euro collapse on the horizon.

    Report Post »  
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