Tuesday, November 8, 2011

Run on the Greek banks continues...can Italy be far behind?

A Bloomberg article reports that Greek banks continue to lose deposits.  Confirmation of a loss of confidence in the Greek banking system.

Can Italian deposits be far behind?

I wonder how many of these deposits are being transferred to Germany so as to avoid the possibility of currency exchange risk if the country the deposits are fleeing exits the Euro.  Said another way, how many Greeks prefer to exchange their money now for Deutsche Marks rather than wait and have their euros exchanged for Drachma.
Greek bank deposits by businesses and households fell to 183.2 billion euros in September from 188.6 billion euros the previous month, according to a statement released by the Athens-based Bank of Greece (TELL) on its website today

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