BREAKING NEWS: Ginko Financial Converts Everyone’s Cash To Bonds
Posted by Simon Lameth on August 9, 2007
As reported yesterday, rumor was spreading that Ginko Financial was going to convert all deposits into Ginko Perpetual Bonds. At 10:20 PM last night, this was confirmed by the bank, via an announcement on their website.”we have concluded that the only way forward from this is to convert, compulsorily, all customer deposits into a tradeable debt security called Ginko Perpetual Bonds.” - Official Ginko Announcement.
However, by the looks of it, Ginko has not closed permanently. “Ginko Financial will bounce back from this” gives them the oppourtunity to re-open when they feel the time is right.
August 10, 2007 at 1:12 am
This is silly. You pulled down your earlier post encouraging deposits when Ginko finally went belly up. Now, you’re running this?
Out of all the news, you choose to focus on the phrase from their press release: “Ginko Financial will bounce back from this?”
Not the bonds they forced people into at a fraction of the value of their deposits. Not the obvious fraud here. Not even a puff piece about how management was a bunch of misguided kids.
So how much do you have with Ginko anyway? It seems fair to disclose that, so readers can evaluate whether it’s impacting your coverage.