RIGA, Latvia - Latvia's largest bank scrambled Monday to head off a run among depositors who were gripped by rumours of the bank's imminent ruin.
Weekend rumours that Swedbank was facing legal and liquidity problems in Estonia and Sweden sent thousands of Latvians to bank machines on Sunday, with some lines reaching as many as 50 people.
Swedbank is the largest bank in Sweden and the Baltic region, definitely could affect other banks as well... and with interbank lending essentially frozen, whattya think the chances are of Swedbank looking up Uncle Ben for a loan or three? Wouldn't bet against it... or other banks getting hit with runs, especially if the Swedbank run gets out of control... people are pretty well spooked right now, and it wouldn't take much to get the herd to move...
H/T to Rjazz117 over at tickerforum...