{"id":31567,"date":"2018-02-24T13:21:47","date_gmt":"2018-02-24T18:21:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31567"},"modified":"2018-02-24T13:21:47","modified_gmt":"2018-02-24T18:21:47","slug":"bank-run-feared-after-ecb-unexpectedly-pulls-plug-on-latvia-largest-private-bank","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31567","title":{"rendered":"Bank Run Feared After ECB Unexpectedly Pulls Plug On Latvia Largest Private Bank"},"content":{"rendered":"
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Bank Run Feared After ECB Unexpectedly Pulls Plug On Latvia Largest Private Bank<\/a><\/span><\/h3>\n<\/div>\n
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Last week we reported <\/a>that as part of a rapidly deteriorating banking crisis in Latvia, which culminated with the detention of central bank head Ilmars Rimsevics on suspicion of accepting a bribe of more than \u20ac100,000 (which prompted both the prime minister and president to demand his resignation, something he has so far refused to do), the European Central Bank froze all payments by Latvia’s largest private bank, ABLV, following U.S. accusations the bank laundered billions in illicit funds, including for companies connected to North Korea\u2019s banned ballistic-missile program.<\/p>\n

Then overnight the Latvian banking crisis escalated when in a statement released early Saturday, the ECB said ABLV Bank\u2019s liquidity had deteriorated significantly, making it unlikely to pay its debts and declaring it “failing or likely to fail.” As a result, Latvia’s third largest bank will be wound up under local laws after the European Central Bank<\/p>\n

Following the ECB\u2019s decision, which also included the bank\u2019s subsidiary in Luxembourg, the WSJ reported <\/a>that Europe\u2019s banking resolution authority decided the banks didn\u2019t represent a systemic risk for their countries or the region and should be wound up by local authorities rather than be \u201cbailed in\u201d under EU rules.<\/strong><\/p>\n

And so, on Saturday ABLV said it would be liquidated. In four days, the bank claimed, it had raised enough capital to meet all its depositors\u2019 demands and keep functioning, however “Due to political considerations the bank was not given a chance to do it,”<\/strong> it said in a statement.<\/p>\n

As we discussed previously, ABLV\u2019s fall follows a move by the U.S. Treasury last week to block its access to U.S. dollars, accusing it of \u201cinstitutionalized money laundering.\u201d It said most of the bank\u2019s customers were shell companies registered outside Latvia.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bank Run Feared After ECB Unexpectedly Pulls Plug On Latvia Largest Private Bank Last week we reported that as part of a rapidly deteriorating banking crisis in Latvia, which culminated with the detention of central bank head Ilmars Rimsevics on suspicion of accepting a bribe of more than \u20ac100,000 (which prompted both the prime minister […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18715,2086,122,233,282,3807,2006,1109],"class_list":["post-31567","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ablv","tag-bank-run","tag-central-bank","tag-ecb","tag-european-central-bank","tag-latvia","tag-north-korea","tag-sanctions"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31567"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31567\/revisions"}],"predecessor-version":[{"id":31568,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31567\/revisions\/31568"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}