Hong Kong Moves to Calm Depositors After Bank East Asia Rumors

Hong Kong Moves to Calm Depositors After Bank East Asia Rumors

bloomberg.com

Sept. 25 (Bloomberg) -- Hong Kong's government, regulators and richest man came to the aid of Bank Of East Asia Ltd. after ``malicious rumors'' about its financial stability spurred the city's first bank run in more than a decade.

Financial Secretary John Tsang said the rumors were ``unfounded'' and the bank has enough capital to serve its clients. Joseph Yam, head of Hong Kong's central bank, urged depositors to stay calm and pumped $500 million into the banking system. Li Ka-shing, chairman of Cheung Kong (Holdings) Ltd., bought the stock.

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I'm actually expecting to see something like this happen in the U.S. tomorrow. After Bush's speech tonight and Paulson saying Americans' personal savings are threatened, it may just happen.

bloomberg.com
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[edit on 25-9-2008 by MatrixBaller04]

[edit on 25-9-2008 by MatrixBaller04]