Bankrun causes Banco de Madrid to close

After the US accused its parent company of laundering money the Spanish authorities announced a deep investigation into Banco de Madrid. That in turn caused customers to lose confidence and massively withdraw funds.

This is what happens when people lose confidence. Of course, in this case, the money mostly went to other banks...

Article:
http://elpais.com/elpais/2015/03/16/inenglish/1426499824_666996.html

Quote

... The decision comes less than a week after the lender’s entire board of directors walked out as a result of an incipient investigation into suspicious transactions, leading to a run on the bank.

This Bank of Spain probe was in turn triggered by the US authorities’ actions against Banco Madrid’s parent company, Banca Privada d’Andorra (BPA), for suspected money-laundering activities. ...

Edit: Locking, someone posted about the same item here: https://bitcointalksearch.org/topic/bank-run-andorran-and-spain-banks-go-bankrupt-state-refused-to-aid-depositors-993789

Topic: Bankrun causes Banco de Madrid to close (Read 526 times)