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It looks like a run on Bankia has started
17 May 2012 @ 13:40

According to Reuters, 1 billion euros has been taken out of Bankia accounts by worried customers, mirroring similar developments in Greece. From Reuters:

Customers of troubled Spanish bank Bankia, nationalized last week, have taken out over 1 billion euros ($1.3 billion) from their accounts over the past week, El Mundo newspaper reported on Thursday.

The newly appointed chairman, Jose Ignacio Goirigolzarri, informed a board meeting that customers had pulled out funds since the bank was taken over by the government, El Mundo said, citing information from the board meeting it had seen.

At the time of writing this, Bankia's share price is down 16% on the day. At one point, they were down well over 20%. It's not looking good...

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10 Comments

Ray said:
19 May 2012 @ 07:12

I have my mortgage with these and a little money in the bank enough to pay my mortgage and bills for 3mths. Not knowing much about these sort of things how could it affect me. Should I look for a different mortgage company or just sit still and wait at end of the day I owe them the money i.e. my mortgage so not sure what they can do to me.

johnzx said:
19 May 2012 @ 08:32

No matter what happens to the bank you will still owe the mortgage to them or their successors. Can't see why you need to do anything.

Steve said:
19 May 2012 @ 13:49

Ditto you'll still owe the money.learn from northern rock and for god sake don't panic.why oh why oh why don't people learn and use the brain god gave them the trend is the same just a differnt place and time.lemming syndrome is what I would call it and where are you running too?its the fact your running or starting to run that will cause the collapse of your bank and then you can sit back and say oooo I got out just in time remember it will collapse because of your actions not your inactions.

Mary said:
19 May 2012 @ 14:07

I believe that it has since been show that the story of money being withdrawn is untrue, official complaints have been made. I can only say we have seen no sign of this happening in the branches we use.
As if problems are not bad enough we have the media putting a spin on the matter.
At close yesterday the shares had gone up btw.

midasgold said:
19 May 2012 @ 15:12

Bankia was formed 2 years ago from six smaller caja savings
banks which had massive debts. These debts (now called assets by Bankia!) ment that these banks would have gone down leaving the Spanish banking system in chaos. You can't polish
a turd into an asset. Thats why you have it's customers now taking out their money - (the run on the bank).

David H said:
19 May 2012 @ 20:25

What happens if you have both a cash balance in your current account and a mortgage account with the same troubled bank? This must be a very common situation.
Would you lose your cash in a crash but be left paying the mortgage to a new lender?

midasgold said:
20 May 2012 @ 09:36

David H
You become a creditor for your deposit and the goverment
SHOULD pay you out (up to an agreed limit) - but don't hold your breath !
You will still owe on the mortgage and have to settle that debt.

janice. said:
09 June 2012 @ 23:32

So Basically it is a win, win situation with the Banks, BUT we will always owe what we owe, and they keep getting Bail-outs and keep on with their huge Salaries and Bonuses !!

Jeroen said:
14 June 2012 @ 12:02

So what about the 100'000 EURO guarantee on bank deposits from Spanish government. Do you believe they can honor this (with or without the recently announced EU support for Spanish banking system)?

Spanish Business News said:
14 June 2012 @ 13:59

Jeroen, the Spanish guarantee on deposits is worthless. They currently don't have the money to honour the guarantees.