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Sunday, January 8, 2017

The Recent History of Greece

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At lunch today (Sunday 8th Jan.) a lady Dato whose father was a right hand man for Tun Abdul Razak our second Prime Minister said that she went to B-nk Raky-t recently to withdraw her dividends. 

The counter person told her that she could not withdraw cash but had to open a savings account where her dividends will be deposited. She says she kicked up a fuss and insisted that she can withdraw cash from her own account. I think she won the argument. This is a very strange episode. I hope Bank Negara is reading this. Please dont keep silent. Say something.

Another person, a son of a former MB said that "computer glitch" at BSN Bank lasted more than a month - where people had trouble withdrawing their money from BSN Bank. I did blog about the problem at BSN Bank.

Then here is the Scale 8 on the Richter.  Recall in the 1MDB scandal Goldman Sachs raised US$3 billion bonds (RM13 Billion). Who are the people who bought those bonds and are they still holding on to those bonds? It so happens that our own "Cap Endangered Species" Bank was one of the largest buyers (or subscribers) of those bonds. A figure of a billion or more was mentioned. Talk is they may still be holding on to some of those bonds. This means they should record a huge paper loss because the 1MDB bonds are now close to junk grade. Even if they had sold the 1MDB bonds, they must have taken a big loss too (a real loss and not a paper loss) because again the bonds must have traded at junk grade.  

Online media and stock market analysts, call up 'Endagered Species Bank" and ask them to confirm or deny.

Talk is "Endangered Species Bank" has also rescheduled a loan for our largest plantation group just before they defaulted.  So technically they avoided a default.  I hope the cashflows will support the reschedule because otherwise it is NOT a very prudent thing to do for a commercial bank which is entrusted with deposits of  public funds. 

It looks like the gomen's financial system, including some of the financial institutions in the gomen's orbit, are under varying degrees of stress.  One prepaid said the banks are all making money. Maybe they are. But that excuse cannot be used to wallpaper reckless behaviour. I hope the stress does not become distress. 

Here is some recent history from Greece, from June 2015 (18 months ago). Whether it is relevant or not, it is worth reading.


ATHENS, Greece — Greece imposed restrictions on money withdrawals and banking transactions to keep its financial system from collapsing due to a run on the banks.
Cash withdrawals from ATMs will have a daily limit of 60 euros ($67) per card.
 
Credit and debit card transactions within the country will not be limited. In practice, however, many retailers were already not accepting card transactions as of Monday morning, and were demanding cash payments only.
 
Internet and phone banking within the country will have no restrictions, but no money can be transferred out of the country.
 
For emergency needs, importing medicines or sending remittances abroad, Treasury will examine requests on a case-by-case basis.
 

retirees lined up hoping they would be able to receive their pensions, which were due


My comments :  That was Greece in June 2015. Can you imagine the amount of suffering it cost the people of Greece.  Like any country Greece will have economic class divisions. But it is still very largely a mono-racial, mono-lingual, mono-cultural and mono-religious society.   

We are not.

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