Eurozone crisis live: Spain's Bankia denies suffering run on deposits

Shares in Bankia fell by 26% this morning, after a report that customers had withdrawn over €1bn since it was partially nationalised last week. Photograph: Paul White/AP

4.39pm: European stock markets have closed in the red again, after another day dominated by fears over the eurozone.

FTSE 100: down 66 points at 5338, - 1.24%
DAX: down 67 points at 6316, -1.06%
CAC: down 32 points at 3016, -1.07%
IBEX: down 73 points at 6537, -1.11%
FTSE MIB: down 194 points at 12089, -1.46%
Fears over Bankia's future saw its shares close 13% lower, despite the official denials that it was suffering a bank run.
The Stoxx 600 Euro Zone banking index, which includes financial stocks from across the single currency, fell by 2.6% to its lowest ever closing level. That reflects speculation that Moody's will downgrade a swathe of Spanish banks at 8pm BST tonight...

4.02pm: Following today's denials from Bankia, City analysts are warning this afternoon that Europe could see bank runs in earnest unless progress is made to resolve the crisis.

Capital Economics pointed to reports of deposit outflows in Greece, saying:

Concerns are growing that bank runs could soon become a regular feature in other troubled countries in the region deemed at risk of following Greece's lead.
The recent rapid decline in Greek bank deposits underlines our warnings that it could be market pressures exerted through the banking system which prompt some form of euro-zone break-up.

This graph shows how Greek bank deposits have been falling for months.
With the euro bobbing around the $1.27 mark, and shares down in Europe, CMC Markets' Michael Hewson compared the markets to the Vortex rollercoaster at the Thorpe Park theme park:

Talk of bank runs in Europe clobbered banking shares across Europe with Bankia in Spain gyrating wildly lower. Reports that ratings agency Moody's is considering downgrading 21 Spanish banks has also weighed on sentiment as the Spanish IBEX hit fresh nine year lows, as economic data confirmed that the country was back in recession.
UK banks also got caught up in the backdraft with Royal Bank of Scotland and Barclays the biggest losers in UK markets.

http://www.guardian.co.uk/business/2012/may/17/eurozone-crisis-cameron-greece-euro-exit

______________________________________________

βλέπουμε πόσο γρήγορα τα 0.7δισ ελληνικού bank run έγιναν 1.2 ισπανικού (εντάξει, εκεί μετά από μια ..κρατικοποίηση, όπως άλλωστε έγινε και μετά τη Nothern Rock)