Another Bank Limits Withdrawals: Is Your Deposit Account Safe?

The rumblings are coming from all over the world… banks limiting cash withdrawals… threats of default in major investment vehicles… ATMs mysteriously all ceasing to operate… widespread discussion of destabilized financial systems and currencies, as fallout from the original Federal Reserve taper…

From Zero Hedge: “Russian Bank Halts All Cash Withdrawals.”

It would appear the fears of a global bank run are spreading. From HSBC’s limiting large cash withdrawals (for your own good) to Lloyds ATMs going down, Bloomberg reports that ‘My Bank’ – one of Russia’s top 200 lenders by assets – has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia. Russia sovereign CDS had recently weakened to 4-month wides at 192bps.

Via Bloomberg,

Lender has introduced complete ban on cash withdrawals until end of week, news agency reports, citing unidentified person in call center.

Bank spokeswoman declined to comment by phone

My Bank is top 200 lender by assets: Prime

NOTE: Central bank has revoked about 30 banking licenses since July 1 when Elvira Nabiullina succeeded Sergei Ignatiev as governor, compared with three in the first half of the year

Yeah, this could simply blow over, and the can could kick itself down the road a while longer, but… it’s also very possible things could turn upside-down any day.

Keep that seatbelt handy. And… if your bank said you can’t have your money today… or this week… what would you do?