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Game Over For Greek Banks: Depositors Yank €2 Billion In Past Three Days
At this point, regardless of whether Greece miraculously cobbles a last minute deal together and gets just enough funds to pay back the near-term debt maturities (long-term can be found here):
And interest payments:
... to the IMF, it is too late to save the Greek bank system.
The key reason, as Reuters just updated, is that the Greek bank run which we have been closely tracking in recent months, just saw its biggest 3 days surge perhaps in history, when Greek depositors yanked over €2 billion from local banks, an amount which means the latest ELA boost has already been depleted, and amounts to about 1.5% of total Greek deposits.
In context this would be equivalent to about $150 billion in deposit outflows from US banks in half a week, or about 10% of the total amount of currency in circulation.
Per Reuters, "Greek banks have seen deposit outflows surge to about 2 billion euros over the past three days, with the pace of daily outflows tripling since the collapse of talks at the weekend with creditors, three banking sources told Reuters on Thursday.
Talks between Greece and its euro zone and IMF creditors collapsed over the weekend in Brussels, leaving the country on the verge of a default at the end of the month and sparking fears of capital controls.
Before the collapse of talks, bankers said outflows had been ranging between 200-300 million euros a day.
A spokesman for the Greek central bank declined to comment on the figures, saying it releases data on deposits on set dates every month and would publish data for May on June 26.
We now expect more images such as this one hitting the social networks momentarily:
@zerohedge @GreekAnalyst @GreekFire23 pic.twitter.com/xlaxns77xc
— Ahmet Douas (@ahmetdouas) June 17, 2015
But that's just the first part of the bad news for Greek banks. The second one comes courtesy of Bloomberg's Yalman Onaran who reminds us that it is not just a matter of liquidity (which is only there as long as the ECB keeps boosting its ELA allotment), but also solvency. To wit:
The four biggest lenders, accounting for 91 percent of the country’s banking assets, could see their 12 billion euros ($14 billion) of tangible core capital wiped out by mounting provisions as overdue and restructured loans default. Even if Greece reaches an agreement with European creditors to free up additional money, its next bailout will need to include a new round of funding for the ailing banks.
Bad loans rose last quarter as the economy slipped back into recession and Greeks delayed payments waiting for the new government to pardon debt. With the recovery stalled, the four banks -- National Bank of Greece SA, Piraeus Bank SA, Alpha Bank AE and Eurobank Ergasias SA -- could require 16 billion euros in additional provisions to cover losses if half of the 59 billion euros of overdue and restructured loans on their books sour.
“We had expected nonperforming loans to peak in the first quarter, but we now expect this sometime in 2016, subject to some kind of economic stability,” said Nondas Nicolaides, an analyst at Moody’s Investors Service in Athens. “There’s a high risk that restructured loans and others showing signs of trouble will slip back into default. It’s a possibility the banks might need another round of capital injections.”
Just replace "possibility" with "certainty" and the picture is complete. Spokesmen for National Bank, Piraeus, Alpha and Eurobank declined to comment which was to be expected. After all, what can they say?
In other words, the Troika - whose intention from the very beginning was to cripple Greek banks so badly and terminally that Tsipras and Varoufakis are forced to accept any terms hoisted on them as we predicted in January - has succeeded. The only question is how long until the Syriza government admits defeat.
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can i borrow your atm card brother?
Now we are getting somewhere
Here’s an interestin’ bit of non-MSM knews.
The Saudis are pissed at us. They are beyond pissed.
Today, the King of Saudi Arabia has accepted Putin’s invitation to visit Russia and invited Putin to SA.
The Petro-dollar came into existence on the hump of the Saudi Camel. What would happen if, one day, the Saudis will stop settling in dollars?
Looney
Is it going down? >>> https://youtu.be/stuHt7ZRYrQ
Greek bonds are an absolute bargain right now. When Greece comes crawling back to the EU with its tail between its legs, a deal will be struck and Greek bonds will soar. Remember, when you buy bonds you're not only getting capital gains, you're getting frequently compounded cashflows too. Peripheral bonds are the wise investor's choice - the layman is afraid, but the experienced investor knows that the best bargains are to be found in times of distress.
Never invest in an insolvent entity period. Can you say picking up a penny infront of a steam roller?
As far as the actual post goes, citizens in other nations will learn soon enough the dangers of keeping thier money in the banking system. They may think going cashless sounds like a good idea without understanding the freedom cash provides.
Hard lesson of debt and liquidity crisis... Ruble (or Euro) in banks is not equals of Ruble (or Euro) in pocket. Capital control is on ledger money, not physical currency.
... except in despotic regime where secret police is knock on door in middle of night, or like in Amerika, where is frequent abuse of civil forfeiture law.
In Murica ATM = realtime mugshot generation machine. When you withdraw fiat notes from ATM, be sure to smile for the camera; you will want to look good on the evening news.
Greek bonds are near an 18 month high, and have seen a value of less than half of its current value. Nope, bargain hunters already picked that carcass clean.
who are making these withdrawals though???
We've been told the Greek people are flat broke, yet hundreds of millions and now billions are being withdrawn from their banks. If cap controls have also been established limiting them to 300 euros a day as well (or whatever the amount is...we know it would be very small), then how could these broke people be withdrawing that much money???
I highly doubt the numbers could add up unless the banks are allowing the mega rich to withdraw that kinda fiat from their systems in huge amounts while at the same time throttling down what the few people left with anything in the banks can withdraw.
So this doesn't sound right with a population of only 11 million people who have supposedly been dead broke for a few years now and skyrocketing unemployment.
This reminds me of a story about.....
The Great Whore of Babylon....
Who believe that she's "Untouchable"....
America may be sending you arms, missle, and what have ya, but THIS IS ON YOU!!!! :D
http://rt.com/business/cyprus-crisis-bailout-deposit-631/
I hope they're withdrawing it and contacting their nearest PM store to trade paper for some Hard Ass-ets.
Time for a world Crowd Funding of Greece! Crowd out the Troika (3's a crowd).
They will..and Bono will lead the concert to feed the children of Greece....Next year I bet....live at the Parthanon
This article is like pulled right from someone's ass not brain.
Actually things are going perfectly for the best buddies Vlad and Tsipras
Gartman: Greece would be better off defaulting
http://www.cnbc.com/id/102769162
http://www.zerohedge.com/news/2015-06-18/europe-considers-emergency-debt...
What happens actually now in Greece is Vlad's payback for Ukraine and Murica & EU just realize it, and understood that either they write-off these piles of paper or offer a Trojan horse entry to Russia in Europe trough Greece's backyard. Either way Greece & Russia are winners and Varoufakis knew it from the beginning - everything was just chess play. Implicitly IMF/Trojka/EU accept that they will have to follow-up same style with Italy, Spain, Portugal and admit defeat of the strategy to build up wealth by debt enslavement. This is going to be the biggest social turmoil in history of the mankind and the only way this reshaping of the social landscape will be stopped is going to happen if the dark lords decide that for keeping the status-quo going apeshit crazy and trigger by any means a war with the Sino-Russian alliance is the only option.
Yup - statist Tyler has the con. You can always tell when he clocks in.
Corzine?
Remember, don't be early, and if you are, don't use margin debt.
off topic
@ Looney
The Saudis initiated the meeting and invited Putin, not other way around. But you are right, the Saudis are seriously pissed and looking for a new patron, at least in terms of safety.
Get those Euros out now........the bank's about to throw at the "closed" sign and then you've been Corzined
I can't believe there are people who still have their money in Greek banks! The writing has been on the wall a long time!
This is how Government workers get paid over there.
There is no postal service over there so direct deposit it is. Hence "wait in line to withdraw monies."
In the USA the check comes in the mail and is printed out on physical paper.
In other words, the Troika - whose intention from the very beginning was to cripple Greek banks so badly and terminally that Tsipras and Varoufakis are forced to accept any terms hoisted on them as we predicted in January - has succeeded.
Horse manure again.
The Trioka simply wants budget changes so that more giving to Greece is not required. Greek govt. refuses to pay international lenders and has not paid domestic suppliers. The state owned business have had their cash confiscated by govt. Those operators cannot pay their suppliers. With no cash flowing to the business borrowers, they cannot pay the banks. All as a result from Greek govt action, not Trioka action. If the intention was to crash the banks, there would be no ELA funding for them from ECB. It is the Greek govt. that is intent on crashing the banks and is even proposing to nationalize them.
Greek borrowers see that the government does not make payments to them. If the govt. can get away with not paying, why should private borrowers make payments? The basis of the Greek economy is that no one pays.
Wrong - if you really were a disabled vet you would know that your Uncle requires direct deposit as well. NOT NEGOTIABLE.
Itll be useful to start a fire, if nothing else.
If the money isn't worth anything why wait in line to withdraw it?
One more day suckers to get your money out in cash. Next comes invalidation of those Greek euros so you better grab some PMs ASAP.
E.C.B.: "Well, that does it, we're going to have to ban cash in the Southern E.U. Good thing we label all of those unifying Euros with a nationality code."
I guess all of the criminals will now steal matresses instead of robbing banks.
They won't admit defeat. They will switch to the BRICS and start the European "People's Revolution," just like the globalist script calls for:
The active phase of the “People’s Revolution” kicks offECB buckles into Greece.
Eurocrats running scared!
Two ways. Gradually, then suddenly.”
Ernest Hemingway, The Sun Also Rises
I recommend the entire population of Greece move to Germany and declare refugee status since it seems to be working out great for the boat people.....
Rural East Germany has plenty cheap land and real estate. It would be cheaper than pumping billions into a Greek black hole.
and now...Yanis Varoufakis will attempt the most spectacular dive possible, the Triple Lindy!
Is that hard?
It's impossible.
So where is the Greek military in all this mess? And while we're at it, where is John Kerry?
Their military looks to be playing it smart since it allows them to come in and play hero when the dust settles....
where is John Kerry?
Don't worry, 6 years from now TPTB will launch a secret mission to "find" him.
Kerry was put out to stud at the local petting zoo.
He was last seen running around the streets of Tbilisi, Georgia after extreme flooding allowed a range of animals to escape from the zoo.
How long before Greece labeled Euro's aren't accepted anywhere but in Greece, or is that already the case?
Just like .gov likes to use test states as incubators for their pilot programs (think Mitt/Obama care in Mass.) this just a test run. If people think it's not coming this way they're fucked in the head. Keep sitting in your barcalounger lounger eating your Cheetos while watching teeevee Merika and the bankers will have everything you own.
"“There’s a high risk that restructured loans and others showing signs of trouble will slip back into default. It’s a possibility the banks might need another round of capital injections.”"
WOW, this is beyond stupid...
Still begs the question: are things looking so good that people until a few seconds to midnight before they pull €2B to safety? Should they not have done this several weeks or months ago? This still leaves about €130B which will soon go up in smoke.....
It turns out the Troika is not only corrupt and tyrannical, it is also vindictive. It could have bent a little to help the Greek people out of their collective misery as Greece defaults, but instead they didn’t, knowing as they do that it was their primary intention to crush the Greek banks and force the people to heel.
It did not lift a finger; it just intentionally drove the misery deeper; punishment for the Greek people is far too easy a word, it is vengeance. But vengeance on innocents.
The internationals bankers’ technique that they have used in the 109 countries and locations where they have been kicked out since AD250, is just forging ahead trying to be as obstinate as they can be, the same scenario Americans are seeing here with an oligarch-driven surge in the stock market at the expense of middle class producers.
The Troika is an unelected, despotic criminal cabal. There is nothing on earth more criminal.
http://www.biblebelievers.org.au/
ZH’s assertion that the Troika’s intention was to cripple Greek banks is nonsense. The Greek people crippled their banks and country by voting crooks as their leaders and outspending their income for decades living the socialist dream. A dream that predictably is ending in a nightmare. The US , despite seeing how this unfolds, unfortunately, is headed in a similar direction and with a similar outcome.
Your conclusion then is that I created Barack Obama, that I forced a decision between two branches of one political party created and dominated by the Federal Reserve, that I put Jack Lew in the U.S. Treasury, that I created Goldman Sachs; that the Greeks created Goldman Sachs.
And that I and the Greeks created the money trust and its power to forceably exchange the money it creates out of nothing for the resources and assets of the world that is depriving people of their property leaving them homeless in their own lands. Because of "debt."
It is part of the banker Empire’s strategy to envelope sovereign countries, install puppet governments and steal the resources: think the Ukraine Project.
This strategy of expanding Empire follows almost exactly a pattern used in other parts of the world; and was specifically revealed in the landmark, insider book, Confessions of an Economic Hit Man by John Perkins.
Perkins was part of the rigged elections, payoffs, extortion, sex, and murder in the game of Empire that's unfolding daily in the assault on Ukraine and Greece.
Goldman Sachs, i.e., the New York Fed, is the chief beneficiary of these maneuvers. Why must the working peoples of the world bail out Goldman Sachs for its debt risk?
This article seems to have a badly twisted logic. The bill for all the bank withdrawels in Greece is footed by the ECB. Add 100 billion target account to the 330 billion liabilities to creditors plus some guarantees and you arrive at 0,5 trillion which are at stake if Greece defaults. It is an unknown what the Greece government will finally do. It is not unknown what they officially ask for: Steps to retun to a bearable debt level. This means that huge amounts have to be written off. We are very close to that now.
upvote + well said, exactly so!
Yes. We have some sanity here. The private sector is not large in Greece and most at the top have exited. The huge amounts to be written off will be thru negotiations among EU Oligarchs. Take a leaf from how Oligarchs operate during Russia Crisis. Look like it will be a variant. A generational wealth transfer opportunity. Little People..go choose your Oligarch.
Unfortunately we hear no numbers how much Euros the Greeks still have in their bank accounts.
To me Tsipras and Varoufakis have fantastically succeeded in allowing all half-awake Greeks to yank their money from their banks accounts, quite a feat (compare with Cyprus.)
Plus 1 from me. I think it is totally underestimated how much effect these ELA credit lines have on the negotiations because everytime the ECB raised the floor to keep Greek banks a little more liquid it meant more cash could be safed from an iminent devaluation. And that is the achievment of Tsipras for prolonging the talks as much as possible, now showdown is here and we'll see what it brings. If the default happens and Greek has to go back to Drachma all these Euros now stuffed in pillows will at least help to dampen the dire consequences that are to come.
Not a bad gig actually. If I had the choice, I would want to be in a currency union with Germans and take the equity out of their assets, stash and milk their system for as long as possible and then walk away from my obligations. Germans are too nice for this game.
I love it..the Greeks are not paying on their personal loans from the banks because they think they will get pardoned...lol.....its over folks...
Bad loans rose last quarter as the economy slipped back into recession and Greeks delayed payments waiting for the new government to pardon debt. ...lol...gotta love it
You invariably sympathize with the usurious lenders on any given issue. I wonder why that is.
Greek loans from IMf and ECB have very low rates. And the Greeks even get some of any spread gains as a refund.
Calling that Usery indicates that you are an uninformed idiot. Or just a Greek deadbeat borrower who expects to never repay anything.
I dont like bankers either...but I also do not like people who take out loans and who do not want to pay them back...the Greeks have lived on borrowed money for a long time..now its time to pay...and they do not want to....so they will pay now.....the hard way
The EU/IMF and ECB had wonderful dreams of using Greece as it's personal cash cow. Dream on fuckers!
Who wants a cow that only eats and will not return the milk?
Greece has only swallowed money from the ECB and the EU subsidies. It never could have been considered a cash cow.
Tomorrow Tsipras is visting Putin in St Peterburg . So I expect some surprise in store for the EU criminals .
Greece from now on will not have to pay any money to the TROIKA.
Dreamer. Everyone is in Leningrad tomorrow to make trade deals with Russia. Siemens signed a deal with Russia for railcars and engines today. Amerikanskis are openly working around their own sanctions. Amerikanskis always fuck their friends worse than anyone else.
Socialists and all other forms of redistribtors just don't have a clue about how the wealth they crave to redistribute is created. Can't redistribute and steal whats not there. Syriza doesn't have a chance against Troika because ultimately all they really know how to do is beg. There is really nothing more pathetic than a demanding and arrogant beggar. Troika, now there's a thief that knows their game (until Greece sets the default example).
Moneyprinters and all other forms of redistributors just don't have a clue about how the wealth they crave to redistribute is created. Can't redistribute and steal whats not there. Troika doesn't have a chance against Syriza because ultimately all they really know how to do is print. There is really nothing more pathetic than a demanding and arrogant moneyprinter. Syriza, now there's a thief that knows their game (until the Troika realizes they have been played like a fiddle).
Greece reported more fairy tales this morning. Their budget surplus was supposedly higher than previously expected! Since Troika is no longer checking the books, the unicorns are flying high on fairy sprinkles in Athens!
See, Greece can fix itself if they only get a few more billion now and a few more billion next month and then more billions before the end of tourist season.
I suppose if Greece can prove the loans went to politicians and not to the benefit of the country or people they could score in sympathy votes. A trial of those guilty would be a benefit to all. My guess however is that most of the money went to pensions and salaries and not to unneeded miltary projects and bribes.
Greece will need to adapt. They either live lives of less affluence than other europeans or start producing stuff the world wants.
America faces the same need to adapt soon. Our dollar is overvalued and when the supports fail we too will be in the same situation....with even more debt to deal with. The Greeks owe about $40,000 per person. In the US official bebt is over $55,000 per person.
Basically it seems like no one in Greece is getting paid, nor making any payments in return, and the Greek government wants more money so they can continue not paying anyone, nor get paid by taxpayers.
Win Win!
now greek people will have to flee to albania...
For a country with small population , pulling out 2 billion it seems people aren't doing too bad.
I agree that the game is over, but the player whose game is over is rather the Bank for International Settlements and its insolvent 60 central bank members. Why does Zerohedge insist on ignoring the Global Debt Facility containing the world's monetary gold reserves that is administered by the World Bank and International Monetary Fund?
The reality is that Greece, along with all of the members of the Bretton Woods institutions, are replacing their fractional reserve fiat currencies for currencies minted from their monetary gold reserves in the Global Debt Facility.
https://s3.amazonaws.com/khudes/Alternative+to+WWIII.pdfSee my conversation with Greece's representatives on the Board of the World Bank: https://s3.amazonaws.com/khudes/Twitter6.20.15.pdf