Alexander Higgins - June 11, 2012 at 5:47 pm - Permalink - Source via Alexander Higgins Blog
‘Financial difficulties’ force Bank Network Investments SpA (BNI) to begin a Bank Of Italy authorized freeze on all customer accounts.On May 31st Bank Network Investments discretely posted an announcement on their website that they would be freezing all of their customers accounts for 1 month freeze on citing financial difficulties.
The announcement was posted and the bank gave customers 7 days to act before the Bank of Italy approved freeze went into effect.
The bank’s customers are saying they were completely unaware of the notice being posted and are just now finding out about it when they go to the bank or the ATM for the first time.
The media certainly hasn’t reported on it and news of the freeze is only now starting to make its way around the internet after a complaint was posted on the popular Italian consumer rights website Adiconsum along with a photo of a shutdown ATM.
The freezing of the customer’s deposits, in a nation that apparently doesn’t have a mechanism like the FDIC to insure customer deposits against losses, has sent a shockwaves of terror across Italy raising fears that other customers will lose their deposits entirely.
In turn speculation is growing that other banks in Italy and across Europe may soon suffer the same fate as Europe officials announce they are planning ATM and Bank withdrawal restrictions to deal with a Greece exits from the Euro.
A Google News search shows no corporate news reports on the web.
A Google web search shows only a series of blogs and forums discussing the story that I am reporting on now.
ZaZoom reports: (auto translated from Italian)
A policeman in Milan sums up the situation:
BNI: Bank Investment Network is downHome page of the bank (http://www.bancanetwork.it/) is reported out its slogan “A bank efficiently, always by your side.” But since this morning its customers are left to their fate, without any ability to access and use their own money.
Network Investment Bank, with a statement stiminzito decided and announced the suspension of any form of withdrawal and payment of money, with a notice of 7 days that unfortunately not all customers have had the opportunity and time to read (http://www. bancanetwork.it / content / suspension-of-payments).
The institute, in receivership since last November, announced that on May 31, the commissioners, “with the approval of the Monitoring Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind ‘for a month.
To the rescue – in the few lines we read online – have stepped forward and the group Sim Consultinvest Savings Bank of Ravenna, but in the meantime, depositors are furious.
Massimo, policeman in Milan speaks for all: when I went to pay the mechanic office for my car the bancomat did not work, nor was I able to make a transfer. Actually, they took all my money away. Now I have 20€ in my wallet, a wife and two daughters, what am I going to do? My account is also where my salary goes to, so what now?An English translation of the suspension announcement posted on the Banks website.
Mediterranean News (Italian) reports how the banks customer’s feel as if they have had their money stolen from them.
Suspension of PaymentsOn 31 May 2012, the Special Commissioners of Bank Network Investments SpA in Extraordinary Administration (MI), with the approval of the Supervisory Committee and with the approval of the Bank of Italy, have decided to suspend the payment of liabilities of any kind, pursuant to art. 74 of Leg. September 1, 1993. 385 (TUB), for the period of one month.The suspension does not include client financial instruments.The measure was necessary to face the difficult situation of the bank.Organs extraordinary Bank Network Investments SpA, an intermediary member of the Interbank Deposit Protection Fund, are developing a plan for solving the crisis in order to safeguard clients’ rights, provides for the intervention of Consultinvest SIM Group and Bank Savings of Ravenna.
Investment Watchdog reports: