Texts and Facebook messages blamed for bank run in Bulgaria

See the original posting on The Verge

A coordinated effort to create panic about the health of Bulgaria’s banking system has led the European Commission to extend a credit line of 3.3 billion lev ($2.3 billion USD). That money is being used to stabilize and safeguard the country’s banks after customers received mysterious text messages last week urging them to withdraw funds quickly. Bugarian President Rosen Plevneliev and other government leaders have sought to avert a crisis by emphasizing that all money stored with the country’s banking institutions is safe.

Corporate Commercial Bank was the first victim of last week’s bank run, and withdrawals became so widespread that Bulgaria’s fourth-largest lender was forced to shut down and cede control to the central bank. Just…

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