{"id":9229,"date":"2015-06-19T06:08:00","date_gmt":"2015-06-19T11:08:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9229"},"modified":"2015-06-19T06:08:00","modified_gmt":"2015-06-19T11:08:00","slug":"leaked-denied-then-confirmed-ecb-not-sure-if-greek-banks-can-open-monday","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9229","title":{"rendered":"LEAKED (Denied then Confirmed): ECB Not Sure If Greek Banks Can Open Monday"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/06\/18\/greek-banks-are-toast-leaked-denied-confirmed-ecb-not-sure-if-greek-banks-can-open-monday\/\" target=\"_blank\">LEAKED (Denied then Confirmed): ECB Not Sure If Greek Banks Can Open Monday<\/a><\/h3>\n<p>There seems to be a growing willingness in the Eurozone to get this over with, to let Greece default and go from there \u2013 with all the options that this might entail. But even if a last-minute bailout agreement materializes, one thing stands out in this sea of chaotic uncertainty: Greek banks are toast.<\/p>\n<p>The top four \u2013 National Bank of Greece, Piraeus Bank, Alpha Bank, and Eurobank Ergasias \u2013 account for 91% of Greek banking assets. They\u2019ve already been bailed out twice. Their shares are penny stocks. They have two toxic problems: liquidity and solvency. Either one can topple them.<\/p>\n<p>Liquidity is a problem because the Greeks have\u00a0<em>zero<\/em>\u00a0trust in their banks and have been yanking their euros out with increasing desperation. They won\u2019t ever forget what happened to depositors in Cyprus. Deposits have plunged about 20% since November, to \u20ac130 billion. According to\u00a0<a href=\"http:\/\/www.reuters.com\/article\/2015\/06\/18\/eurozone-greece-banks-idUSL5N0Z44M820150618\" target=\"_blank\"><u>Reuters<\/u><\/a>, \u201cbanking sources\u201d said that just during the first three days of this week, Greeks have pulled \u20ac2 billion from their accounts \u2013 about \u20ac667 million a day, compared to prior weeks when they\u2019d withdrawn \u20ac200 to \u20ac300 million a day.<\/p>\n<p>Meanwhile, funding from central banks has jumped to over \u20ac120 billion: \u20ac40 billion from the ECB directly; and \u20ac83 billion via the Emergency Liquidity Assistance (ELA) through the Bank of Greece. Thus, deposits and central-bank funding are rapidly approaching a dreadful level: parity.<\/p>\n<p>\u201cThere\u2019s a real possibility they\u2019ll fold, not just Greece but the banks themselves,\u201d Fitch Managing Director James Longsdon told\u00a0<a href=\"http:\/\/video.cnbc.com\/gallery\/?video=3000389238&amp;play=1\" target=\"_blank\"><u>CNBC<\/u><\/a>.<\/p>\n<p>And ELA, the lifeblood of Greek banks, is conditioned on two things: available collateral and solvency.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LEAKED (Denied then Confirmed): ECB Not Sure If Greek Banks Can Open Monday There seems to be a growing willingness in the Eurozone to get this over with, to let Greece default and go from there \u2013 with all the options that this might entail. But even if a last-minute bailout agreement materializes, one thing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[4946,2086,63,233,282,285,1167,6497,6498,6435,6499,487,815,4254,4255],"class_list":["post-9229","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-bank-of-greece","tag-bank-run","tag-banks","tag-ecb","tag-european-central-bank","tag-eurozone","tag-greece","tag-greece-default","tag-greece-insolvency","tag-greek-banks","tag-greek-financial-market-crash","tag-liquidity","tag-trust","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9229"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9229\/revisions"}],"predecessor-version":[{"id":9230,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/9229\/revisions\/9230"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}