Reports have surfaced today that Italy’s Network Investment Bank has suspended payments and withdrawals.
We now have reports about impending capital controls, and now an Italian Bank holiday at Network Investment Bank.
The half life of the sugar rally from Saturday’s Spanish bank bailout appears to have been roughly 2 hours once the markets reopened.
Italian report Google translated:
Network Bank stopped payments, customers furious
Stop the transaction until July for the crisis of the institution.
The website of the Bank Network.
Network Investment Bank has suspended payments, causing great inconvenience to customers. STOP FOR A MONTH. The institute, in receivership since last November, announced that on May 31, the commissioners, “with the approval of the Monitoring Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind ‘for a month. The stop, communicated through the website of the bank, does not include client financial instruments. It was emphasized that “the measure was needed to tackle the difficult situation of the bank. angry depositors. To the rescue – in the few lines we read online – have stepped forward and the group Sim Consultinvest Savings Bank of Ravenna, but in the meantime, depositors are furious . For all spoke Massimo, police in Milan with his wife and two daughters in Messina: “Nobody told me anything and today (June 4), when I went to pay the mechanic, the ATM was not working. Even the credit can do. ‘ “MI HAVE REMOVED THE MONEY.” “Actually,” he added, “I have taken my money. In the book I have only 20 euros in cash and the escrow account where the salary is credited to me, how do I make ends meet? “. And to think that Bank Investment Network has as shareholders the names of the first floor of the financial world: Aviva Banco Popular De Agostini and Sopaf. “GUESTS OF PERSONS FINANCIALLY ADVANCED.” The customers of Bank Network, financial sources have noted, is composed largely of the “financially sophisticated individuals” able to understand the situation and wait for the definition plan of action by the group and Sim Consultinvest Savings Bank announced the release of Ravenna as special commissioners
Click here for original source in Italian:
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Bloody hell!!! I would be furious too. By the looks of all the reports that are coming in, it won’t surprise me if the global monetary system is going to go into a complete meltdown soon…
There is after all only so much shit a donkey can take.
lol “Domestic beast of burden descended from the African wild ass; patient but stubborn”
go help the monkey(s), Silverbullion
lol
I am already assuming you are Africa – based. Monkeys playing with diamonds in your backyard….
Hey Europe…If you ain’t stackin’, you need a smackin’!
MAMYTA lol Yep
Bank!
It’s no surprise that the ministers made that 24 hour decision to bail out Spain’s banks. Spain’s banks were losing $1 billion a day in withdrawals and they are worse off than Italy. If those funds were not forthcoming we could easily have seen regional bank holidays in Spain. The $100 billion Euros might last a few days at this rate. Bank runs are going to into warp drive the moment account holders in Spain, Portugal, Italy and Ireland get wind of this event. The best way to tell who is next in the dominoes is the bank denying they are not sound.
The used chilli hitting the fan now kiddies….
Amen 4oz. and AGXIIK
Did Someone Say Currency Control, Bank Run? (UUP, FXF, EUO)
June 11, 2012 11:32 am
Are currency controls and bank runs in our future?
As the debt crisis in Europe intensifies, more and more chatter rises
around the possibility of impending currency controls and bank runs in
Europe.
Bank runs are nothing new in financial history as they were recorded
as early as the 16th century and in conjunction with such famous
financial fiascoes as the Dutch Tulip Mania between 1634-37, the British
South Sea Company Bubble in 1717 and America’s Great Depression
starting in 1929.
Bank runs were a major factor in the Depression while in today’s
financial crisis, we have seen bank runs surrounding Northern Rock in
Europe and in current conditions in Spain.
Capital controls are designed to restrict the flow of capital to or
from a country and can include measures like transaction taxes,
restrictions on currency conversion and the transfer of assets and
trading to or from the country. Capital controls came into being after
the Bretton Woods Conference at the end of World War II and have been
used at various times throughout history.
Today, with the financial crisis in Europe reaching
boiling point, bank runs and capital controls become a real possibility
and modern day bank runs are apparently already underway as capital
leaves Spain, Greece, Italy and Europe, in general.
Recent reports indicate that 100 Billion Eurodollars have recently
left Spain as residents fretted about the safety of their money and
approximately 10% of Italian capital has fled the country. In Greece,
reports indicate that as much as 4 Billion Euros a week are heading for
safer shores.
Capital is flowing from problem countries to Germany, Switzerland and
the United States, among other “safe havens” in the form of currency
asset and sovereign bond purchases.<—Soon, we’ll see incoming capital control policies
This is where capital controls come into play as countries like
Greece and Italy could impose them to stop capital from leaving while
countries like Germany and Switzerland could impose capital controls to
stop money from coming in and forcing up the value of their currency.,<—This may also be contributing to the rise in the dollar index.
Reports circulate that Switzerland is already considering
restrictions on the Swiss Franc to stop the flow of Eurodollars into the
Franc.
“Safe haven” country bond yields have been reaching record lows as
money flows into U.S. Treasury Bonds and German Bunds with U.S. 10 year
bonds at 1.58% and German 10 year bonds at 1.30%.
Danish and Swedish bonds have also experienced substantial yield
compression as capital apparently leaves the southern tier of Europe for
northern countries.
Possible capital controls in Europe could include ATM withdrawal
limits, border checks and outright control over the flow of capital
around the Euro Zone.<—CHAOS MAN!—THIS IS ONLY THE BEGINNING!
Affected currencies include the U.S. Dollar, (NYSEARCA:UUP)
up 4.5% since the start of May, which is widely seen as the safest
currency in the world as the world’s largest economy stands behind it
and the dollar is still the world’s reserve currency.
Bottom line: The situation in Europe remains fluid and
dangerous. With currency flight from troubled countries and an
uncertain outcome for Spain and Italy, flight to safe haven currency and
bonds is likely to continue and make the ongoing debt crisis more
dangerous and difficult to resolve. READ MORE
More Than A 200 Point Range Today –Get Used To This
SPANISH GOVERNMENT GENERIC BONDS – 10 YR NOTE GSPG10YR:IND 6.50800
+0.29200 +4.70%
As of
12:01:00 ET on
06/11/2012.
AS OF FRIDAY, THIS BOND HAD NOT YET APPROACHED A NEW HIGH–BUT NOW, ALMOST AT A NEW YEARLY HIGH
If you are translating with google …this happens. I’m italian, and this bank problem has nothing to do with the economic collapse of this days. It’s a local problem of mismanagement, not a problem of toxic waste like derivatives.
raffaello You might be right, but I am not 100% convinced that it is just a local problem of mismanagement. The real problem might be something much-much deeper and serious. I simply cannot see why they need to suspend payments and withdrawals if it’s just a local problem of mismanagement. I believe they’re lying through their teeth. Just my two cents.
gosh where can we put our money to keep it safe!!
Italy may not be on the edge yet despite the limits on cash Euro withdrawals. Spain and Greece are the 8,000 lb elephants. ISDA just reported that inn spite of the $125 billion in ESM managed Spanish bank bailout won’t trigger CDS ESM loans subordinate the very debt covered by CDS. JPM—-lucky, lucky, lucky.
UKPSYCHO
money = gold and silver
currency = EURO, USD, et cetera.
You want to exchange a large portion of your currency for money. You want to hide the money. You also want to keep a portion of your currency in cash to cover daily transactions and to use during emergencies (stash this in a hiding place as well). Only leave enough currency in the bank to cover debt payments, et cetera.
I hope the above helps.
lol AG The Morgue can thank their lucky stars indeed.
FTA: “Safe haven” country bond yields have been reaching record lows as money flows into U.S. Treasury Bonds and German Bunds with U.S. 10 year bonds at 1.58% and German 10 year bonds at 1.30%.
I guess it’s a safe haven in that it’s safe to assume you’re going to be losing ~8% a year against real inflation.
UKPSYCHO In addition, you want to stock up on food that can be stored for a long period of time, you want to make sure that you will have access to sufficient fresh water in case the official water supply gets closed, et cetera.
AG, could you give us the link to your survival guide again? Thank you in advance.
lol exactly CAU
Where can you put your money to keep it safe….
Step 1) Convert your fiat to Phyz
Step 2) Put in secure area
Step 3) Place claymores at entry points making sure your can monitor them so they don’t get turned around on you…
Step 4) Sit on top of it with Squad Automatic Weapon across your lap
Step 5) Turn the Yogi Bear DvD back on… For your pleasure…
lol Danno
I’m with Raphaello on this one. I don’t worry about the Euro or Europe as I believe it’s only a diversion away from the real problem and that is Derivatives Market.
We have been talking about the Euro and Europe for a couple of months now and still Silver and Gold is being held back and if Greece, Italy or anyother country in Europe collapses I believe Silver and Gold will still be held back, as it’s being Manipulated until the Derivatives collapse. Just my opinion.
So In The Meantime I’ll Stack While I Can.
Silver Bullion the link is on Doc SD Hall of Fame. That’s my peronal prepper guide
were there any other links you were interested in?
SHTFplan.com and prepperwebsite.com seem to have some of the deepest wells of data, handy reference guides, articles and connections to service providers and distributors.
Silverbullion, your ass photo is priceless, it looks like the middle east version of santa clause and rudolph landing with presents, perhaps gold for the three wise men…LOL
I’m with you AGX. This rumor could be easily become the trigger if enough Europeans catch wind.
just keep on stackin until it all collapses. Not much else to do.
Some holiday.
Rafaello, Thank you for the personal update from Italy. Italians are known as great savers. Keep us informed to the Euro and local situation. It’s good to have you on here at SD’s.
Even if it is a local problem, this kind of news adds to the overall increasing feel of total world economic collapse as people everywhere are losing faith in their leaders and fiat currencies. Panic will set in at some point and the bank runs will start in all countries.
Italian bank wants to “tackle the difficult situation of the bank. angry depositors” – cuts them off from their money for a month. I’m sure they’ll be much happier now.
Now they can change their slogan to “GUESTS OF PERSONS FINANCIALLY ADVANCED CHALLENGED.”