Greek central bank says rumour mongers may face charges

Greece’s chief central banker warned that anyone spreading false rumours regarding bank troubles could face charges by the public prosecutor, Greek media reported yesteday.

Monetary authorities are concerned that rumours on the solvency of banks amid the global financial crisis may spark a run on deposits, hitting particularly smaller banks. “When there is a named complaint for spreading false news I will report those responsible to the public prosecutor,” Bank of Greece Governor George Provopoulos was quoted as saying by financial website Capital.gr and Eleftheros Typos newspaper.Provopoulos, also a member of the European Central Bank’s Governing Council, said last week that Greece’s banking system is sound and stable and does not face strains from exposure to toxic assets.- Nampa-Reuters Landsbanki’s UK bank icesave suspends operations Icelandic bank Landsbanki’s British internet bank icesave has stopped customers withdrawing or depositing money, according to its website.”We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts,” icesave said yesterday.”We apologise for any inconvenience this may cause our customers.We hope to provide you with more information shortly.”Earlier, the Icelandic Financial Supervisory Authority said it would take control of Landsbanki, the country’s second largest bank by value.The IFSA’s move was the latest step by Icelandic authorities to control a financial sector crisis that has already led to the part-nationalisation of the country’s number-three bank Glitnir and new legislation to give the government sweeping powers over the banking sector.- Nampa-Reuters”When there is a named complaint for spreading false news I will report those responsible to the public prosecutor,” Bank of Greece Governor George Provopoulos was quoted as saying by financial website Capital.gr and Eleftheros Typos newspaper.Provopoulos, also a member of the European Central Bank’s Governing Council, said last week that Greece’s banking system is sound and stable and does not face strains from exposure to toxic assets.- Nampa-Reuters Landsbanki’s UK bank icesave suspends operations Icelandic bank Landsbanki’s British internet bank icesave has stopped customers withdrawing or depositing money, according to its website.”We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts,” icesave said yesterday.”We apologise for any inconvenience this may cause our customers.We hope to provide you with more information shortly.”Earlier, the Icelandic Financial Supervisory Authority said it would take control of Landsbanki, the country’s second largest bank by value.The IFSA’s move was the latest step by Icelandic authorities to control a financial sector crisis that has already led to the part-nationalisation of the country’s number-three bank Glitnir and new legislation to give the government sweeping powers over the banking sector.- Nampa-Reuters