Korean Bank Run Spreading: Eighth Bank Closes Following "Massive Withdrawals"

Zero Hedge ^ | 02/23/2011 | Tyler Durden

[The Magical Mischief Tour]

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.

[Red Badger]

Wait till the panic starts here. Then we will see people in the streets like the middle east......

[null and void]

Uh oh..

[Big Bronson]

Wait till the panic starts here. Then we will see people in the streets like the middle east......

Quietly, nonchalantly, but within the next few days, take your money out of BoA.

[Myrddin]

Time to put some food and currency aside. I'm 925 miles from home where I've done that already. I need to make arrangements to cover my out of town situation.

[Myrddin]

BofA is the rumored target of a WikiLeaks leak. They may well be vulnerable to a run.

[unseen1]

thanks for the info. this is not good.

[null and void]

Welcome to FR...

[Big Bronson]

Thank you.

[Migraine]

courageous decision by the Financial Services Chairman Kim Seok-dong to deposit $17,864 in a troubled bank has not done much

Of course it didn't "do much". Anyone knows it was a "play" backed by the Korean "Fed" (or equivalent).

Reminds me of how our Fed is backing Goldman-Sachs and JP Morgan selling silver and gold short in order to help in the quest to artificially prop up the dollar. We already know: if they lose the bet, they'll just be reimbursed. It's criminal.

[GOPJ]

Quietly, nonchalantly, but within the next few days, take your money out of BoA.

Seems they're 'too big' to fail... I don't see how FDIC could bail them out...

[Big Bronson]

"Seems they're 'too big' to fail... "

I'm sticking with the dictum "Unsustainable trends...end." They still have too much junk on their books. Did you see today's report on housing prices? BoA is sitting on rapidly rotting homes and the derivatives thereof and no amount of pawing around at the litter box can hide the stench anymore. Citi, you're up next.

[Iron Munro]

Did someone say "Bailout"?

[Free Vulcan]

Oh boy, this ain’t good. We got an ‘oh shit!’ moment here.

[dynachrome]

ping. Even though you are no longer with us.

[MileHi]

Why’d he get bounced?

[null and void]

No one knows

[dynachrome]

Looks like something about posting photos. His posting stops on the 11th.

[MileHi]

Too bad