Summary Box: Latvian bank fends off deposit run

AP News
Posted: Dec 12, 2011 1:18 PM
Summary Box: Latvian bank fends off deposit run

BANK RUN: Latvia's largest bank scrambled Monday to head off a run among depositors who were gripped by rumors of the bank's imminent ruin.

THE FUEL: Weekend rumors that Swedbank was facing legal and liquidity problems in Estonia and Sweden sent thousands of Latvians to bank machines Sunday. Prime Minister Valdis Dombrovskis told journalists that the rumors were spread maliciously, the Baltic News Service reported.

THE HISTORY: Latvians are sensitive to speculation about banks' health. Latvijas Krajbanka, the country's 10th-largest bank, was nationalized last month after regulators discovered evidence of fraud. Depositors couldn't access their money for days.