8th bank closes in South Korea as BANK RUN accelerates

And this is reported NOWHERE in the MSM.

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

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.

From JoongAng Daily:

Domin Bank, which has six branches in Gangwon, was placed on a watch list last week by the Financial Services Commission. The move triggered a bank run on Domin Bank.

According to Domin Bank, deposits amounting 31.8 billion won ($28.2 million) were withdrawn since last Thursday, including 18.8 billion won on Monday.

The news of Domin Bank’s temporary closure came as FSC Chairman Kim Seok-dong was visiting Mokpo, South Jeolla, where recently suspended Bohae Savings Bank is located.

Seok-dong unhappy:

“This savings bank was supposed to submit a management improvement plan to the FSC by Feb. 24,” said Kim. “We will now have to review whether [the closure] is even legally O.K.”

More classic quotes follow:

Bae Joon-soo, senior FSC deputy director, said, “I think it is legally and morally wrong for a financial firm to do such a thing.”

Now we get it: according to the banking cartel's ethical standard it is "legally and morally wrong" for a bank to admit it is insolvent.

This is real bad.... if South Korea falls... it won't be good that's for sure.

I wish ZH was mainstream, its a great source of information.

Good post. Any ideas on where this sits as an overall percentage of SK banks?

brill

No it's good.

These banks have gone far too long playing this shell game. And although I wish it would end tomorrow I know deep inside it will not end anytime soon. Nope.

The plain fact of the matter is, banks assets are almost entirely fictional these days, entries in ledgers and digits on a computer screen.

And yet they charge interest on loans they give out, of money supposedly deposited by other bank customers. Yet somehow those profits do not really add up for the customer. While they may get a few % return over many years of having a deposit, the banks are making 25%+ typically on their loans they give out.

This is a shell game. But in this game, there is no ball. All cups are empty.

That's why bank runs are possible. That's why they are catastrophic.

If we don't like it, maybe we should have more fiscally responsible banking institutions?
Perhaps these failures need to collapse the hard way, to pave the ground for something reasonable and honest?

Like I said though, I don't expect such basic common sense to prevail. I expect the same old same old.
More Fraud.

A shell game with no ball. That's the modern banking system.

reply to post by brill


Not much I think.

It seems WSJ is reporting on it.

South Korea Suspends Seventh Savings Bank

The four largest South Korean lenders—KB Financial Group Inc., Woori, Shinhan Financial Group Co. and Hana—have expressed interest in acquiring savings banks to help stabilize the financial sector and to expand their business portfolio. This has been welcomed by the government, which sees such acquisitions as bolstering its efforts. Analysts say that the government's willingness to take on distressed savings banks' bad debt to assist potential buyers will minimize burdens on the big four lenders should they move to acquire such banks.

Gee big banks buying smaller banks once again.

Wouldn't surprise me if that bank run was ``engineered``...

These days, almost every bank run is coordinated purposely.

It requires excellent media organization to spread the word to run the banks through an entire population.

90% of the time, only mainstream media is capable of such a feat.

So yes, it could easily be a take over plot. Hostile take over through illegal means, even.

reply to post by Vitchilo


your comment about South Korea Falling reminds me of the game homefront when the North Koreans took over South Korea peacefully.

I am offering this as a support for this thread, some additonal information. There is no way the OP would have found this using search. S&F for your post OP, I think we need to be watching this.

www.abovetopsecret.com...

Nice find OP, S&F.

It goes to show how precarious the banks are around the world. The US fractional banking system is less than 1 in 20 - or 5% allowed in Korea.

If the citizens of the Western World ever took their collective heads out of the sand and took a look at what was really going on instead of just who's gonna get kicked off of Survivor or American Idol this week, the same thing might happen here.

Citizens must realize that the entire financial system is completely and absolutely controlled by bankers out of the limelight as well as the Federal Reserve, and that the entire Western System is based on the same deck of cards - the western system was a model for South Korea.

No wonder Western media is keeping quiet about this.

It goes to show how precarious the banks are around the world. The US fractional banking system is less than 1 in 20 - or 5% allowed in Korea.

Oh it's much higher than that. At university, they still teach us that the ratio is 1 in 10... which is utter BS.

The real ratios, as revealed during the ``financial crisis``... was around 1 in 80+. And that is for European banks. For the US numbers, we don't even know, but it's probably in the hundreds.