Greek cash withdrawals raise fear of run on banks

by Anthee Carassava

Los Angeles Times
May 19, 2012

Eva, a well-groomed pensioner, grasps her creamy white purse, glancing impatiently at her gold Cartier watch as she waits for the manager of an Athens bank. She is offered tea, cookies and orange juice, none of which the state bank usually provides, and none of which Eva accepts.

"I'm concerned," says the 82-year-old, who declined to give her last name because she was involved in a private transaction. "I'm thinking of withdrawing all my savings."

Greek banks have been bleeding money since inconclusive elections this month, and the rise of a Marxist-Leninist leader bent on bustingBerlin'sausterity crusade, plunged the country into the biggest political crisis in decades and raised the specter of a devastating default.

Frightened savers have yet to throng outside Greek banks in a harum-scarum draining of deposits. But this month's spate of withdrawals is far outpacing previous ones, increasing worry about a full-fledged run on banks, with the financial system already seriously strained.

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