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Piraeus Bank Denies Rumor It Has Run Out Of Cash
UPDATE: *PIRAEUS BANK CFO DENIES SPECULATION OF CASH SHORTAGE
It appears the worst fears of many Greeks may be coming true following a Stratfor report that Piraeus Bank ATMs in downtown Athens appear to have run out of money - telling "customers that there is no cash and the situation will last through the weekend." However, locals, reporting on Twitter, claim this is false. Greek stocks (especially banks) are down hard, as is the EURUSD.
Stratfor reports Piraeus is out of cash...
It seeems not everyone is so sure...
@fxmacro Total BS, was just there. End of month today and pensioners always there to collect pensions and pay bills. @Stratfor got suckered
— Thanassis Drogossis (@tdrog1) February 27, 2015
Of course, the mere fact that this is possible is likely to spark some fear into The Greek people as they watch their newly elected government 'negotiate' their futures away.
While the Stratfor report may or may not be accurate, the reason why Greek risk is selling off today is that as we reported last night, out of left field Greece decided to lob a grenade across the Troika bow when it threatened that it may "delay" its repayment of one of the seveeral IMF loans due for repayment as soon as one week from today...
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Ink, they ran out of ink!!
*poof*
That's how bank runs start, by denying there is a bank run.
Get ready for a Cyprus style weekend bail-in......and it's gone.
You are almost certainly right. God help the Greeks. The German public isn't interested in the job.
this game is so bizzar right now
This is why I bank with Bankopoulis 300.
They'll be standing last.
During the Cyprus crisis, Pireus Bank was the beneficary of a Troika/IMF orchestrated deal where it could buy cyprian bank assets worth 4 billion US$ for a lousy 500 million US$.The cyprian government was blackmailed into greenlighting this deal.
The difference of 3.5 billion US$ could be activated the same year and resulted in a profit in the same height for PB.
Looks like this gains were not used to "provide liquidity" but rather to fill the pockets of some Oligarchs. Thank you Troika, thank you IMF, well restructured.
Cypriot, not Cyprian. And remember that those overleveraged, underwater Cypriot bank assets...
lots of them were Greek sovereign bonds, and the Greek government was keen on "twisting the Cypriot gov's arms", for obvious reasons
ah, what I would give to be able not to remember all those ugly twists of this ugly story
Whoever denied it ..supplied it!
RIPS
Cyprian or cypriot. Both are ok, Ghordius.
(It is fine to lecture other people but why don't you check if your correction is correct before going public? Btw, are you a German?)
1-800-Putin Lends
We are not out of money BECAUSE WE NEVER HAD ANY. It was YOUR money we ran out of.
As far as I am concerned, all banks are already out of money since they have left the gold standard.
bingo
Now it seems they're even running low on IOUs from others!
More importantly, Brit rock star of yesteryear, Gary Glitter, 70, has been sentenced to 16 years in prison for the rapes decades ago of 3 underage girls. Fans, crying openly at the sentencing demanded a shorter sentence on the basis of Glitter's character, saying "At least they weren't little boys with Teddy Heath over at the Dolphins."
Now, back to our regularly scheduled early withdrawals
Even MORE important [to Americans who don't even know who Gary Glitter is, nor could find Greece on a map]... Look! There goes FALCO!
https://www.youtube.com/watch?v=LEGq6rNDOlk
Final note: Bill Cosby will get a O'Presenditial Pardon
and just maybe a Nobel Peace Prize
It's well known that GG hung out on ZH; bought over priced grilled cheese products from a van along with stacking shiny barbarous relics. So you all know your fate now then?
Don't they have debit cards over there??
Yes - but things are cheaper when you pay in cash.
Barter is even better.
stratfor?
cia BS outfit
No way! Stratfor scooped everyone with intel on the Greek bank run.
I shorted all of the Greek banks and will clearly make a fortune with this inside intel.
Whoops...
Awww... HELL No! DAMN!
Margin call already??? I just sold that kidney and blew through all of the porceeds in one f'king DAY!
American banks would run out of cash in 20 minutes! Actual cash, not digital dollars.
If it's on Twitter, it's bullshit.
Collapse of European banking system due insolvency in 5...4...
my goodness, sometimes I really wished I'd be paid for every time I spot something wrong, here. what "European banking system"? remember Cyprus? there is no such thing as an european banking system, they are still national
and ATMs running out of cash... even in Cyprus, that was not a dead-giveaway. can happen for many reasons. we use lots of cash, here. but it's nice to see how diligently stratfor reports such things
I get so confused between the words 'national' and 'subsidiary'.
before I joined the ZH commentary section I would have scoffed at this, but now I think I understand a lot of this confusion regarding political terms, even though I suspect you are pulling legs
national in the sense of Greek banking system, Cypriot banking system, British banking system, Spanish banking system, etc., just to make sure
thanks for the laugh
But are they really national banks if the money funding them comes from other countries?
How a bank can be national since the banking system is global ?
If a bank (or a state !) fail, many foreign one will have problems.
The modern financial system is the most intertwined since the dawn of human history.
Just print some moar. Nobody will know the difference.
Good news. Greece starts printing drachma. Liberation from the euro-currency prison.
is it a prison if the door is open?
Is the door open?
"Adopting the EUR is irreversable."
-M. Dragi
"There can be no democratic choice against the treaties."
- J.C. Juncker
"Elections Change Nothing."
- W. Schäuble
Door open? Good one! They can walk out the door, but they might get shot.
tsk its more subtle than that...show ID for any movement of ones person and explain any piddly cash withdrawal, then explain why you have cash on your person...you earned it, paid tax on it, can prove it, but must repeatedly explain it and justify accessing or using it.....open air prison
that would be an eurozone without the EUR, yes. the way it was before
You make a great case for a common currency. Not lets go one that isn't full on retarded, and I'll be a supporter.
How about we split it along Germanic/Latin borders? My bet is this stuff works itself on its own, and the problems solve themselves in the quickness. What do you say?
the BIS is currently busy trying to bomb the last few nations with independent central banks
please hold, your call will be placed soon
nah, the BIS is just the handmaiden of it's clients. the BIS does nothing if it's not on behalf of a client
and that client is not a national system
its not a national anyone or thing
The BIS zio gods on earth are calling on their puppet blowhard mascotts and thier rented armies from ZATO and the USSA.
it is an alliance. a defensive alliance. I never said it's a "great case", I only say that I joined early as a supporter, and I feel vindicated by what is happening since then, and by what the current risks are
personally, I would have preferred to go back to gold, straight. but that would have been completely impossible, for lots of reasons discussed here on ZH
now you have the luxury of musing if this alliance should be split or not. but the very logic that brought the ERMs and other currency pegs/grids screams that if you split in two, you give the greatest opportunity ever to accomplish the opposite of the scheme. and you don't make friends, in alliances, by sorting the nerds away from the athletic guys
we did what we could. it's working as designed, not less, not more. here my fresh comment to the "Austrian School Solution to Greece's Problem", which might give you a hint or two
the greatest power on earth decided it does not want to see any gold or similar things. our answer to that is the EUR
we have economies with needs, regardless from dreams. "give me price stability or death" isn't a "great case", but it works, as balanced budgets do, too
we do not have any power over the Mighty Dollar. It's America's Money, and Our Problem. The EUR is... a mitigation scheme. nothing heroic
and lo and behold, it gives options, like Plan Q: everybody steps out of it at the same time, and we keep it as a secondary currency. an option, mind. I like options, they have the smell of... freedom
(yes, we had plenty of capital controls, before the EUR, very often, in many countries)
a defensive alliance? without knowing the fine detail? granted that it is virtually impossible to know with these slippery criminals...however the slippery slope was evident and it took some courage to prevail against it unlike the wah wah big USD is scary meme, lets instead take a route offered by the same vested interests for their profit & control
yes capital controls are sometimes legit when your money system is independent & being attacked with weapons (lived through that) - today in BIS controlled nations, they are total BS to serve a few
Greek debts are EU assets, therefore the EU does everything to avoid Greece leaving the "prison". Varoufakis starts to make a joke out of this all.
There are prisons without doors or even railings.
ruh-roh!!
Hey Germany, send more cash - pronto! Pony up you greedy Germans. Fund a poor Greek today and make yourself 'feel good'.
Let's play Austerity!
Vienna, Austerity .... nice Ferris wheel !
For only $19 a month, you can help a Greek....Please pledge now and we will send you 1lb. of expired Feta Cheese...
Let me know when they run out of pitta bread, then it's serious!
I would say the same for greek yougurt, but FAGE relocated out of greece about a year ago IIRC.
.
The Ancients are running in fear
A banking collapse could be near
They're stretching their loins
Withdrawing their coins
While trying to shield their rear
The Limerick King
.
Euro "Shields" .... panty liners .... for those light days !
i figured i would see you show up on a Greek thread
Greek avitar and all
Signed in to say that the article is BS (just used a Piraeus Bank ATM for withdrawal couple of hours ago, and empty ATMS indeed occurs more often on the last day of the month, when pensioners withdraw their pensions which have just been deposited), but I fell on this work of art.
Cheers to you WB and LK for putting a smile on our faces in such times.
So your in Greece??
Please tell us WTF is going on there??
Why in gods or anyone else's name would you have one fuckibg euro cent in the banking system???
Do or do you not want to remain in the Euro system?? Because hasn't "the I want my cake and eat it too" moment come and gone years ago?? What is the common psychology over there?? Because to the free thinking, questioning, rational world, you look insane right now??
LMAO! I don't know if he will answer you, but I sure as heck thought your questions sounded like questions panicked Europeans would ask.
Hey, relax, buddy. Stress shortens your life, you know?
Don't just take my word for it, check it on a map: most of the world exists outside of the USA.
Lends new meaning to Greeks Streaks.
Used to be that undergarment residue in the aftermath of too many chili dogs.
This is getting too painful to watch. Just default already Greece, these bailouts are not good in the long run for all involved. Like in fight club, only when you have lost everything are you free to do anything.
Everything is fine....the bank just said there's no problem. Good enough for me....
Could Yellen lend them her printer for the weekend? I'm trying to be constructive here.....
But Draghi starts his in a week...question is, will it be used to swap bad money for good? Or has it become just bad money chasing bad money now?
Why do people take money out of ATM's .... because, that's where the money is .... oh, wait ?
Greece, just print your own Euros. The Euro is a joke anyway.
Just like all the rest of the CBs fiat.
The picture on the ATM should not be Merkel. Merkel didn't withdraw the money from the bank. The Greek Oligarchs who received all the money the Greek Government borrowed did.
Average Greeks cannot withdraw their money because the bank is a fractional-reserve bank.
This means that every deposit is loaned out upto the reserve ratio. This is done by accounting entry, and results in every 1 ECB-produced Euro deposited being multiplied many times.
The reason it multiplies is because on bank's loan is another bank's deposit. If the debtor spends the money, then it becomes a deposit in the account of whomever he paid. The bank that receives this deposit loans out most of that Euro, and the process repeats until they reach the smallest denomination.
By this process, a 1 Euro deposit would be multiplied 14+ times under a 10% reserve ratio. So, under a 10% reserve requirement, every real Euro would become 14+ Euros of bank entries, that both loaning and subsequent depositing banks would treat like actual Euros.
I believe Greece's reerve ratio requirement is much lower that 10%, meaning there are many, many more than 14 Euros out there for every 'real' one.
The problem with this is that no one knows which deposits are ECB-produced Euros and which are just accounting entries at another bank. So, using the 10% reserve ratio as an example, only one Euro out of the 14 can actually be withdrawn, because it is the only 'real' one. The rest of the Euros are just accounting entries that use the 'real' one as collateral.
This means that the first person one Euro out of the 14 accounting entries...gets the actual Euro, and the rest become unpayable.
So when a Greek tries to withdraw a Euro, and is refused even though he has Euros in his account, it is because someone else already withdrew the real Euro that was the collateral for the rest of them - so the bank doesn't have real Euros with which to pay.
It is the Greek elites who have been withdrawing Euros and moving them out of Greek banks.
It should be their picture on the ATM screen with raised finger. It is they who are making off with the loot.
I am suprised to recieve a down vote for this.
I didn't invent this crazy system!
Or do you dispute that I've accurately described it?
The only way the bank can be bankrupt is if its deposits disappear. Deposits can disappear two ways. The first way is that someone withdraws their money. The second way is that someone who was loaned a majority of that deposit refuses to pay it back... in which case the original depositor will be unable to withdraw it.
I am just saying that Merkel could not be to blame unless she were a depositor in a Greek bank.
Absolutey, although you didn't address the dynamics of electronic money, which comprises the bulk of deposits. I've noted this hard cash shortage elsewhere, whereas debit cards still worked fine. As I remarked earlier, it's a tempest in a teapot in this instance, representing, as a 'news' story, little more than mere propaganda.
Don't sweat the downvote. The forum has become infested with trolls and fox news watchers of late. Who knows what motivates them, but it isnt about thinking.
Spot on. ++
This will not end well.
The Greek plebs shouldn't have cash anyway. Give them shock collars and tell them to remain calm!
Tempest in a teapot, heated by timidity and fear. The human race needs to get off its knees.
STRATFOR: The folks who wrote the book "The Coming War with Japan" in 1991. Also the same folks who got hacked in 2011/2012 and had all their customers credit card numbers and security codes shared on the internet (pastebin).
Not the most intelligent or reliable outfit.
They are both half-right: Greeks can make withdrawals from ATMs but what comes out are olive leaves.
Stratfor are considered to be 'shadow CIA', so want to sow the seeds of bollocks!
Of course they are not out of cash, they just aren't giving any more away, so that they won't run out.