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The Greek Bank Run Spreads To All Four Largest Banks
While moments ago Greece was downgraded by that paragon of analytical and timing virtue, Fitch, to a negative outlook from stable, that is largely meaningless for a nation, devoid of tax revenues and increasingly deposits, which is suddenly imploding at an ever-faster motion.
What is relevant is that following yesterday's report that two Greek banks had suffered sufficiently material deposit withdrawals to force them to apply for the unpopular and highly stigmatizing Emergency Liquidity Assistance program with the ECB, now the other two of Greece's largest banks have also succumbed to reserve depletion after the Greek bank run appears to have gone viral. As Greek Capital.gr reports, now all four Greek banks have requested ELA assistance from the same ECB president who earlier today is said to have unceremoniously kicked out Greece from the ECB's QE program.
As a reminder, this is what we learned yesterday via Kathimerini:
Two Greek systemic banks reportedly submitted the first requests to the Bank of Greece for cash via the emergency liquidity assistance (ELA) system on Thursday, in response to the pressing liquidity conditions resulting from the growing outflow of deposits as well as the acquisition of treasury bills forced onto them by the state.
Banks usually resort to ELA when they face a cash crunch and do not have adequate collateral to draw liquidity from the European Central Bank, their main funding tool. ELA is particularly costly as it carries an interest rate of 1.55 percent, against just 0.05 percent for ECB funding.
The requests by the two lenders will be discussed by the ECB next Wednesday.
And now this, from Capital.gr, google translated:
All four banks in request precautionary ELA
People at the Bank of Greece confirmed that it has submitted a request from the four banks to provide liquidity through the ELA and the Bank of Greece, in the prescribed procedure, has informed the European Central Bank. Not specified amount of requests.
To the question of why Capital.gr requested liquidity through "national" ELA and not by the ECB, despite what has been interrupted and remains active financing from Frankfurt, no details were given. Note that all four Greek systemic banks open until February 28 the ECB funding to guarantee Greek government securities.
The provision of liquidity by ELA is significantly "more expensive" than the ECB, which remains less than 0.5%. The difference between the two mechanisms is that in the case of ELA guarantees can use banks are almost all assets of the loan portfolio, while the ECB needed Greek government securities.
It should however be noted that banks also have bonds of the EFSF by the recapitalization which of course no bank wants to "spend" in moments of uncertainty, preferring to exploit even at higher cost securities loans can not use EDU easy neither the ECB nor the capital market.
Earlier, the Bank of Greece rounds had confirmed the information that already two Greek banks have resorted precautionary liquidity in ELA. The representative of the National Bank, Dimitris Spyropoulos, speaking at Capital.gr said earlier that the National Bank has not had recourse to ELA and does not plan to appeal.
The request of the Greek banks will be discussed next Thursday on the ECB Governing Council in Frankfurt. Information indicates that one of the banks turned to the ELA not participated in the auction of Treasury bills held Tuesday.
Meanwhile, according to a report in Bloomberg, the Alpha Bank has submitted a request to the Bank of Greece for stimulating fluid through the ELA, the agent to invoke bank executive.
The request was a precautionary measure, and the bank does not expect that you will need to use the funds of ELA on time, said earlier in the official Bloomberg. According to the same publication and Eurobank submitted a request for precautionary line of the ELA.
According to a publication of Dow Jones Newswires, representative of Alpha Bank said the bank wanted the funding as a precautionary measure and does not intend to use it. "We are just superstitious, and be on the safe side. It is the general situation in Greece. There are many cash withdrawals, "said spokesman of Alpha Bank to Dow Jones Newswires.
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Doomgasm.
helloooo DRACHMA!!!
Hello to you too. Cheers.
At least we know who is next on the gang plank.
Lets see.
I think shit will really hit the fan if Syriza wins, which I doubt due to Diebold voting machines. But that aside --
if the EMZ lets Greece go this means one of two things;
1) They (that idiot Italian running the ECB) really do have the situation under control, and will do everything under their power to crush Greece in all things that they do, thus killing off the euro-skeptic movement in the PIIGS. The EU will step on Greece's neck in a way that makes the rat-shaking of the Ruple in December of last year look like a walk in the park.
2) The power players that be have deemed it time to plunge the whole world into chaos. They have put enough of their pieces in the right places to pull the plug without risking their project. The Greeks make a good skape-goat. Watchout below.
I cannot see there being more than this to the above two options.
If I am Greek, I would be hoping for option #2, if you aren't Greek, #1 is the better of the two options.
Anybody up for playing with some dominoes?
Good fucking thing we declared those 4 banks as systemic risks, so they aren't anymore.
Back to the ouzo and bungholes, boys!
"No one saw this coming," Papakoupolis told the Hellenic Assembly.
A syphalitic retard could see this coming. Next time, they should wear camoflage-pattern condoms.
The second anyone started talking seriously about Grexit, every saver in the country wanted his Euros out of the fucking banks before they could get Drachma'ed.
But i'm only half Greek
BTW, dont forget the olive oil
If the greeks even get the rumor( or truth) the election was stolen, or rigged, all hell will break loose.
The count is done manually.
3rd alternative - people have enough of it all and rise up. There's enough poverty and resentment.
More like Greece will grexit and shift to the Russia-China axis. The BRICs will tide them over with loans until the gas pipeline can start generating revenues with which to pay them back.
Correct me if I'm wrong but aren't just about all of the seven countries recently cutoff from Russian gas also lined up as potential points of traverse for a southern route?
"Stay with NATO and freeze or join us and make some rubbles."
Much more subtle than Kiev and Syria.
Helloooo naked woman in my lap!
(just wanna see if it works)
*600 pound gorilla woman" appears with a bag of flour.
Go on...
Kyrie Eleison!
Christe eleison. Efxaristo.
Even a 600 pound gorilla woman isn't going to be able to survive roaming gangs, intent on eating her flesh, in the great reset.
You have been warned.
Read somewhere that under ELA the Greek can print 100 billion euro. They can do that, go default on their debt and support the Drachma with this 100 billion. Then they will open up to this new Russian oil pipeline, sell their coastline to the Russians and Chinese (there goes the coastline). China is already investing in new ports an infrastructure.
Perhaps a far fetched fantasy but who knows?
If you could buy Greece for $1.39 would you want it?
Nice avatar;)
For sure! I'd move to Greece in a second if I would find myself a nice piece of real estate and something to do (the latter being a challenge). Greece is absolutely a beautiful place and the Greek are great (although a bit unreliable if you want to get something done).
You're the second one today who likes my avatar. I might keep it. I got bored with this paper bag over my head.
Don't do it. Greece charges insane property taxes, jails you for non-payment, refuses to seize the property, and keeps dunning you for taxes while you sit in jail.
Greek property is cheap for a reason. Buy an acre, and you become a serf.
Greece.
Can't live with them --- and yeah thats it.
Stop saying things that I didn't hear on CNBC.
Maybe you should talk to Cognitive Dissonance.
WHY THE SWISS SAID, "FUCK YOU, E-U"
I think we can call this one Ringfenced.
pods
Waiting til' it spreads to Europe.....
#contained
# precautionaryed
Yeah, saw that verbiage after i posted. much better. "guys guys it's only precautionary!!"
#bringbackourdrachmas
Rename it the Ouzo.
We precautioned some folks...
Help a brother out here...
They need the ELA because people are walking in and demanding cash right? If I were a Greek I would electronically transfer my money to a German bank and make that "swept clean" motion with my hands.
On the other hand, I think I remember Cypriots trying the same thing and having their money transfered right back to their bank by the authorities. Anyone else remember that?
They left the London branches of those Cypriot banks open for the oligarchs, only
serfs got caught.
I need help too. I'm having a hard time seeing or understanding what this means:
…the Alpha Bank has submitted a request to the Bank of Greece for stimulating fluid through the ELA, the agent to invoke bank executive.
Is it rectal feeding?
"stimulating fluid'' = Draghi jizz?
Mangled by Google translator!
Did you source that from the SNB ,or Benspankme ?
Bail in comes next.
That is the obvious next step.
Make it a 50% bail in and issue shares.
Then take the hit on the Greek bond writedown / haircut. No reserves were required for those bonds as all govt debt qualifies as AAA for bank accounting.
Leaves the bank with maybe enough capital for the 10% equity requirements.
Hence the run.
i tried to help
i ate out tuesday night and had a greek salad
uh, Greece gets royalty on that, right??
No. Only if you have Greek sex.
Wait, did I just say that??
Yep. And they get twenty five cents every time someone has anal sex. I frankly don't see why they need anything from the EU.
Really, but now you know why greek gals are still 'virgins' when they get
married.
So that's why I never heard a Greek fart.
I am Greek and i can assure you that at least 5 Greek women were not virgins when they got married.
Opa!
They used to, now it goes to China.
HORY SHIT!! WE RIKE GREEK SARAD!!
Now we get to see how smart those Swiss are in hindsight. Get out your duct tape, Europe!
Do you remember schnitzleface?
She sure was ugly but could suck the muzzle break off a Tiger II
Yah, they resting.
bye bye greece
btw joyflation right around the corner
What's in your wallet?
Just one political party fucking with another. Typical politics.
In Cyprus during the bail-in in early 2013 they had columns of fucking armored trucks bringing freshly printed Uros to the ATM machines for a 100 EUR per day withdrawal limit.
Fuck the funny money, I'll take the armored truck.
OH I'm sure they care if their free money is 'stigmatized'.
SDR's to the RESCUE...
You have probably read this blog on the SDR master-plan.
http://philosophyofmetrics.com/2015/01/15/the-fed-sdr-denominated-derivatives/
Be kind. Fiat is free. Draghi print them up a bundle everybody happy be.
Fiat is free But only for the banks ! If Draghi gave the money to every adult in the EU , the recession woul not exist !
The BCE gives money to the wrong people
What Greek idiots, they should have transfered all of the monies to USSA banks where it is safe and insured... FDIC Baby!
FUBAR!
The Greeks should stop and think about this one and only question: "Are we Greek citizens of the Greek country, or subjects, slaves, of the EU and their occupying Greek nation?"
The banksters need to repay us.
My answer here in America is: I am an American citizen of the American country, and not a subject of the US nation that occupies her.
You obviously never did business with A greek..I have ONCE and the last time..pretty consistant in their behaviour when it comes to paying their bills...TheY DONT!!
quote from father of Greek $$hole I got stiffed by
"You only live once so get as much as you can from as many people as you can!"
There you have it..The Greeks have defaulted more times than any other country..Let them eat Yiros for all I care..I do like a greek salad though ;)
Greece returning to the Drachma is actually, a very good thing in the long run. The initial pain will be severe, but the extreme devaluation and balance sheet clearing will be positive for the Greeks and their future prosperity.
The exchange disparity will make Greece's tourism and agricultural businesses thrive. The Greek banking system will have a clean balance sheet, [albeit high borrowing costs initially] but lot's of bartering ability. ;-)
As the Euro continues to plunge, it's advantageous for Greece to exit the euro because of repricing risk costs. eg; bond valuations and equity valuations.
Greece can thrive, but the Greeks need to "band together" around a common cause. The Greeks need to be given the (individual) opportunity to participate and OWN part of the new prosperity they build.
But they better make sure russia/china really has their backs, else I see the EU/west coming down hard in their future, a la what Haus-Targaryen mentions above..
The Chinese and Russians would love access to the Mediterranean Sea. { warm water ports}
All that eastern cash being pulled out of Manhattan time shares needs a new home.
Just wait until the Italians wake up! Italy is a major trading partner with the Russian Federation.
@Yen Cross - Probably already been said, but not by me; massive kudos on the unusual divergences call the night before the SNB.
Thank You very much for your recognition.
i think the chinese own a good portion of the Pireaus port system already.
Yep. Pireaus is now spelt "COSCO".
That might be true if Greece didn't like to run budget deficits. Do you think anyone will ever lend money to Greece in Drachmas?
based on past behaviour yes..."the market" in about 6 months will have forgotton there was ever a problem with Greece.
Screwing creditors always seems like a good idea at the time.
When the get put on Prepayment purchase terms it will not be as painless as expeccted.
OT: Is anyone here an attorney?
Over a year ago I made a South Park clip for something stupid that I uploaded to Youtube. Fast forward to yesterday when I get a notice from Youtube saying that my clip was removed for copyright violations claimed by Viacom, and now I must complete "Copyright School". It consists of a short video giving information to the answers for 4 questions, multiple choice and true or false. Again, there are only 4 questions, but that's not the point. When I first noticed, I was receiving a spontaneous redirect to the Copyright School page. By clicking the back button I was able to return to the previous page. Feeling a little riled up, I used the link to inform Youtube that I would NOT be completing their training course, and informed them as an American this was a violation of my civil rights.
Later that afternoon when I tried to access Youtube, the Copyright School is the only page I can access. It matters not what I click or what address I enter, the only page at Youtube I can access, is this stupid Copyright School.
Now, how do I spin this into a Civil Rights violation?
With the stupid ass lawsuits that fly today, there has got to be a payday here somewhere.
For the lawyers.
So much for the do no harm crowd over at Google/youtube
Help, I'm being repressed!
https://www.youtube.com/watch?v=GS_1bzaj2fw
That's also going to land him in copyright school, you know.
Clean out ALL yer cookies (from youtube/google, etc), as well as your history directory. Since I don't use Windows all that often, I cannot tell you the names of the directories.
+1
If you use Firefox, go to History / Clean browser history. If even that won't work, install Tor Browser (https://www.torproject.org/) and use that to enter Youtube and give 'em the finger.
you don't need an attorney, you need a virtual private network VPN connection which prevents google from seeing your real IP address (also good for general anonomous web serfing) which is how they're redirecting your access to the copywrite school web page on their server. Look up the VPN details on the web. Essentially, all your traffic gets routed through another IP server (typically located on some Island) and appears to google or any other computer server to be originating from there. Only that computer knows your real IP and it doesn't keep a log file so even if requested there's no way to trace the origin of the message. You can bet whoever did the Sony Hack used this approach to cover their tracks and it certainly wasn't North Korea!
Use www.theync.com
google has to feel the churn.
ync is something, what was youtube like, before being acquired by google.
debt jubilee for greece is a way forward (that's a win-win for everyone).
why the rush?
it's right up there with the annual Christmas card list..
"Don't worry Greece, we'll get to it someday next week"
The Drachma will outperform the SDR. Before 2020, bitchez.
What's in a name?
What if the real plot is to bring Greece down BEFORE the general election there takes place?
Alternatively, the problem was caused by all the richest Greeks moving their Euros to CHF because they had been given advance warning about the Swiss move!!
We can all wail and moan but it all comes back to two things.
1. Does Greece really have a plan post elections/post default? Because if it doesn't it will be one big f...g mess.
2. Can Greece live within its productive means rather than relying on borrowed money?
And sooner or later this will be the challenge for all nations, to either produce more or consume less as the orgy of borrowing comes to an end.
The Greeks have a plan? To quote David Sedaris; “The Greeks had invented democracy, built the Acropolis and called it a day.”
The Greeks invented sex, but the Italians added women.
The joke actually goes like this:
The Greeks invented sex but the Italians introduced it to women.
Ouch!
My face pulled a 180'.
At best Sedaris is ignorant if that is what he said. Or does he forget Alexander the Great, Hellenistic Greece etc etc ?
No doubt the current political leadership of Greece is pathetic to say the least but let us remember that the current political leadership of the US is even more pathetic and evil.
Q: Can Greece live within its productive means rather than relying on borrowed money?
A: No
Neither can we (USA).
Such harsh critics.
LOL.
Answer is NO and NO.
Is there one country in the world which does not have a govt. deficit?
Actually, Greece operates with primary surplus. I.e. they wouldn't generate any deficit if it weren't for interest payments to the paper pushers.
Stop paying euro denominated debt...start issuing drachmas.
Use said drachmas to buy new "drachma denominated debt.". See who else is interested " at any price."
Extended bank holiday and bail-in in 3, 2, 1...
JU GOT OWNED GEEKS..LMAO@U!
JU GOT OWNED GEEKS..LMAO@U!
Boy, Fitch are on the ball, aren't they? Worth every cent they charge.
In the last 4 years I haven't seen Greece address their two biggest problems:
1. Nepotism
2. Property ownership/tax collection.
They never will either.
I expect to see wealthy with little in any Greek institution, and a bunch of poor.
look arround in your own country first.
"We Greeked some folks"
My vote is that the first thing Syriza/Tsipras does is make a visit to Russia and China before visiting Merkel. Tsipras is a negotiator....he is going to get elected and then say, "OK, what do I have?"
One thing to have in mind is that Tsipras allready visited Washington -Brookings Institute
The Jews took over Europe quite a few years before they took over America. And that's why they aren't armed in Europe.
A “Conditional Bazooka”: European Top Court Finds ECB’s OMT “May Be Legal” But Must Meet Conditions
http://www.zerohedge.com/news/2015-01-14/european-top-court-finds-ecbs-omt-may-be-legal-must-meet-conditionsIt’s like a street of houses on fire (each house representing one EU nation country) and the fireman can only engage in fighting this fire when they are sure that the house will not collapse after they have engaged in their fire fighting.
To know this they have to apply certain technical conditions in order to know if they have to engage in fire fighting or not. If it’s sure the house will collapse anyways they are not allowed to engage in it. Understanding that they never can be an 100% sure.
They NEVER are allowed to rebuild (fund bailouts) the house after the fire.
So if, for example, it’s clear that Greek will collapse they are not allowed to buy up Greek bonds while that is exactly what the Greek asked for. This will be a clear signal for the hyena hedge funds to attack Greece and make sure it will default.
And now: Greek Debt Will Not Be Included In Bond-Buying Plan; ECB’s Knot Warns QE “Distorts Markets” http://www.zerohedge.com/news/2015-01-16/greek-debt-will-not-be-included-qe-ecbs-knot-warns-ecb-decision-distorts-markets That doesn’t bode well for Greece. It certainly is going to be attacked by the hedge fund hyenas and be forced out of the zone that way.
Greek leftist Tsipras says ECB cannot shut Greece out of stimulus
3 January 2015, by George Georgiopoulos - Athens (Reuters)
http://www.reuters.com/article/2015/01/03/us-greece-politics-idUSKBN0KC0IK20150103
So this discussion is borne …
Tsipras ambitions are not about getting out of the Euro, as he has stated very clearly many times, he simply wants to discuss the elephant in the room, what ‘everybody knows’ but dare not talk about, the unpayable debt that never can and thus will be repaid.
Germany understands that the Greek people are fond of the Euro and that’s also why it’s not so much an issue for Tsipras but they make it an issue, a bargaining chip if you will. He knows his people. Still discussing what eventually has to be discussed anyways, is not a stupid thingy to ask for.
And as it always does, at some point,’The monkey must show it’s ugly face from the sleeve’ :Dutch Proverb: http://menneweblog.nl/wp-content/uploads/2013/04/aap.png
Greece May Get Debt Extension, Rehn Says in Urging Unity
14 January 2015, by Jonathan Stearns (Bloomberg)
http://www.bloomberg.com/news/print/2015-01-14/greece-may-get-debt-extension-rehn-says-in-urging-unity.html
ECB says will adjust ‘haircut’ on Greek bonds for bank funding
16 October 2014, Frankfurt (Reuters)
http://www.reuters.com/article/2014/10/16/us-ecb-greece-bonds-idUSKCN0I51OV20141016
Greece Needs Another €10 Billion Bailout; Syriza Leader Prepares for Power
2 December 2014, by Mike Shedlock (MISH’S Global Economic Trend Analysis)
http://globaleconomicanalysis.blogspot.nl/2014/12/greece-needs-another-10-billion-bailout.html
Greek euro exit would be ‘Lehman Brothers squared’: economist
3 January 2015, by Greg Robb – Washington (MarketWatch)
http://www.marketwatch.com/story/greek-euro-exit-would-be-lehman-brothers-squared-economist-2015-01-03
German bank exposure to Greece around $28 billion: banks
6 January 2015, Frankfurt (Reuters)
http://www.reuters.com/article/2015/01/06/us-eurozone-greece-banking-exposure-idUSKBN0KE16H20150106
Greek Government Struggles to Stay in Power https://www.youtube.com/watch?v=3xFXNRiTqM4 Jan 16, 2015 TheRealNews
get the cash while you can. no one is going to pay the 1.5%. the euro will be dead by then. how do you denominate the money owned?
Just exit already, you'll be better off in the long run. In a few years nationalize everything bankers sold for debts owed and life will be good again.
Swiss are reminding the world of the Icelandic lesson.
Credit ratings agencies - why? Just, why? Not fit for purpose, and plainly never meant to be. All part of the con.
THIS IS SPAAAAAAARTA !!!
Here is an example of something you won't ever read in Greece:
http://www.nydailynews.com/new-york/mta-exec-suspended-son-fired-nepotis...