German towns and cities are pulling money from small, private banks, spooked after losing millions in the closure of Greensill Bank, an experience they said has shattered their faith in the country's government and financial system.
"I'm devastated," said Rainer Schnitzler, mayor of Poecking, a town in Bavaria that had 5 million euros on deposit with Greensill. He learned about the bank's closure while scrolling through online news.Advertisement "We're worried about the entire banking sector," said Mayor Dieter Schneckenburger, criticising German authorities for failing to learn the lessons of the collapse of Lehman Brothers in the financial crisis of 2008 and of the payments firm Wirecard.
Foreign banks with subsidiaries in Germany have been especially successful in luring investors who sought to avoid paying fees, with deposits up 14per cent over the past year, accelerating a trend of the last decade.
Singapore Latest News, Singapore Headlines
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