Some savings banks wrestle with run
The run on Tomato 2 and some other lenders began the morning after the Financial Services Commission (FSC) suspended seven savings banks, including major players Tomato and Jeil, in its latest attempt to purge secondary lenders that were crippled by exposure to the country’s toxic property sector.
A crowd gathers at the Myeong-dong branch of the Tomato 2 Savings Bank in downtown Seoul, Monday, to withdraw money after the bank’s parent firm, Tomato Savings, was one of seven secondary banking units that had its business operations suspended. / Yonhap
An official (R) from Tomato Savings Bank briefs people who have spent several hours waiting to get a number that determines the date they will get provisional payments in front of the headquarters of Tomato Savings Bank in Seongnam, south of Seoul, September 22, 2011. South Korea's financial regulator on Sunday ordered seven savings banks, including major player Tomato Savings Bank, to temporarily close as the sector grapples with deteriorating asset quality due to bad construction loans. About 640,000 people have $9.60 billion deposited in the ailing banks, according to local media.
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