Hong Kong rattled as rumours trigger two-day run on the Bank of East Asia

[tekisui]

Public confidence in one of Asia’s biggest financial names remained fragile last night as Hong Kong’s banking community fought to subdue fears of a liquidity crisis.

Over two days, hundreds of Bank of East Asia (BEA) customers ignored assurances from the bank’s management, analysts and the Government and descended on branches across Hong Kong to withdraw their savings.

The throng dissipated after a HK$3.9 billion (£273 million) cash injection by the Hong Kong Monetary Authority, the territory’s de facto central bank, and a further statement from John Tsang, the Financial Secretary, that the BEA was adequately capitalised.

The Hong Kong bank run came as authorities around the world attempted to quell fears that the credit crisis has spread dysfunction into financial systems globally.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4828378.ece

[mmonk]

1. If we have that here, we're sunk.

[tekisui]

3. Really all the politicos are trying to do with the "bailout" is

build some sense of confidence in the banks.

[Mojorabbit]

4. Exactly

that is all the bailout is. Something is needed to restore confidence. What I don't know.

[MadrasT]

2. Nice. So now the world economy collapses.

So much for those plans to emigrate...