Greek Bank Withdrawls Fuel Fears Of Bank Run



By Brian Blackstone & David Enrich | From WSJ.com | On Tuesday, May 15th, 2012

Greek depositors withdrew €700 million ($898 million) from the country’s banks on Monday, fueling fears of a bank run amid the growing political disarray.

With deposits falling, Greek banks become even more dependent on the European Central Bank to meet their funding needs, exposing the central bank to potentially huge losses if Greece leaves the euro area.

Greek President Karolos Papoulias told the country’s political leaders that bank withdrawals plus buy orders received by Greek banks for German bunds totaled some €800 million on Monday, a transcript of his comments said. A central bank official confirmed the figures.

The original article was posted at http://online.wsj.com/article/SB10001424052702303505504577406310678151998.html?mod=WSJ_hp_LEFTTopStories#articleTabs%3Darticle

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