ECB Says "Greek Bank Holiday Now Necessary"

Tyler Durden's picture

Earlier this morning we noted that the ECB has now frozen the ELA cap for Greek banks in the wake of PM Alexis Tsipras' move to call for a euro referendum and the Greek parliament's vote to allow the poll to go ahead.

With €1 billion or more having already been withdrawn this weekend, the Greek banking sector faces an acute liquidity crisis and without access to more ELA, the game is over and capital controls are likely a foregone conclusion despite Varoufakis' contention that such an outcome is "a contradition of terms" in a monetary union.

The ECB knew this of course when the board of governors decided against raising the cap and indeed, the central bank has now confirmed that without further access to emergency liquidity, Greek banks likely cannot operate going forward and a bank "holiday" may now be necessary.

Via Bloomberg:


Or, summarized:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
kaiserhoff's picture

Bank Holiday.

What an incredibly polite way of saying,


CaptainAmerika's picture
CaptainAmerika (not verified) kaiserhoff Jun 28, 2015 8:31 AM

How many times do you take yourself to the brink of complete collapse?

Manthong's picture

The ISDA will declare a Greek debt default when:

  1. Hell freezes over

  2. The black hole at the center of the Milky Way consumes our solar system.

  3. Gabriel and his legions descend from above and arrest Barak and Hillary for treason.

  4. The Chicago Cubs win the World Series.

  5. It must be all of the above for them to do that.

cossack55's picture

A global permanent bank holiday would be a great thing.

NoDecaf's picture

someone should hang a sign "OmegaBank"

two hoots's picture

"The security at my bank is so good that even I can't get my money out of it?"

Stackers's picture

Fractional Reserve Banking: The greatest fraud ever perpetrated upon humans

DeadFred's picture

It's probably just a coincidence that in two weeks they roll out the new computerized system to direct the military in finding and neutralizing dissidents and other 'outliers' in the terrain map of the human domain. I always figured the NSA collecting all that data was overkill since they would need quantum computers to process it. Oops.

USisCorrupt's picture

China's margin calls will make this Greece fire seem small, I like the fact that China does not recognize derivatives from the west.


Burn it ALL !

Carpenter1's picture

Maybe this time people will finally figure out that the .0001% doesn't have to keep the system up. No, they're burning it to the ground so they can consolidate more power into the hands of fewer.


Creative destruction.


This is lost on BTFD'ers though, who think the .0001%'s are "trapped" and "have to keep QE going."


How wrong you are, and this week you'll learn this hard lesson

DeadFred's picture

You are vastly overestimating the intelligence of the BTFDers. This week as bad as it will be only will only start the awakening. Their accounts will be at zero before their eyes are fully open. Don't you love the smell of panic in the morning? Actually not, it's reminiscent of soiled underwear.

DuneCreature's picture

Really? .. "China does not recognize derivatives from the west". Please tell me me/us more.

I think my respect for Chinese wisdom just ratcheted up a few notches.

Links? … Thanks in advance.

~ DC


Baldrick's picture

check zh archives from 2010.

remain calm's picture

Someone needs to give Draghi a "Life Holiday" and put a bullet in his head.

cossack55's picture

Sho' you right, baby.  Nice hits

Berspankme's picture

Cubs are pretty good this year

two hoots's picture

Greek TO DO list for Monday morning:


1.  Get a rope.



DutchR's picture

Greek TO DO list for Monday morning



It's one of the best places to get fucked anyway, in bed that is.....

Winston Churchill's picture

That refusal is still a couple of months away after the various grace periods.

September again.Its going to shake the faith out of the system that has Govt. bonds at its core..

Who will buy any Govt. bond without CDS protection thats real ?

There goes the Faith and the Credit.

TheMeatTrapper's picture

Hell will freeze over before the Cubbies win the series. 

slaughterer's picture

Bank Holidays are bullish in the new weirdo world.  +20 ES

HungryPorkChop's picture

Maybe the Greeks should invite all of the banksters that help them cook the books in order to get into the Euro back for a ceremonial Greek Island Tour?  I wonder if they'd be any takers?

Last words on the boat:  What are all of those cement bags and buckets for?

DutchR's picture

Why waste cement, they need it to rebuild the country, let the banksters swim from island to island and give them the extended tour......


i feel sorry for the fish, normally i would not give them this crappy feed

Government needs you to pay taxes's picture

Well Greeks, grab your guns and head for Turkey.  I bet Turkey has some assets that could be confiscated and used as collateral.  I do admire the decision to put the fate of the nation in the people's hands.  That was bound to piss off the global .gov cadre.

chunga's picture

I'm not so sure picking a fight with the Turks would be a good idea? They're a big wildcard over there, and I don't think they've weighed in yet on 'merikan heavy weapons deployment.

new game's picture

2 peas differnt pod. nice symbol of freedom from da past, ha...

chunga's picture

the turkey/greece/russia pipeline may play a role here.

(hauled down the jolly roger for a while, stars and bars are everywhere on the cumberland plateau, big one painted over the entrance to my barn for example)

new game's picture

their is hope for change, forever in free people, we are forever bonded in thought, never to be changed. period.

Rand's picture

I salute your flag! Fly it high and proud! When the shit hits the fan men will rally to the Stars & Bars!

Arnold's picture

Greeks are many things, but they are infidels through and through.

PontifexMaximus's picture

"ECB keeps Greek Emergency Bank Aid Unchanged."
QED, business as usual.

ANestIOS's picture

Below what the ECB actually says:


28 June 2015 - ELA to Greek banks maintained at its current level

ECB takes note of decision on Greek referendum and the non-prolongation of the EU adjustment programme
ECB will work closely with Bank of Greece to maintain financial stability
Emergency liquidity assistance maintained at Friday’s (26 June 2015) level
Governing Council stands ready to review decision
Governing Council closely monitoring situation and potential implications for monetary policy stance
The Governing Council of the European Central Bank today welcomed the commitment by ministers from euro area Member States to take all necessary measures to further improve the resilience of euro area economies and to stand ready to take decisive steps to strengthen Economic and Monetary Union.

Following the decision by the Greek authorities to hold a referendum and the non-prolongation of the EU adjustment programme for Greece, the Governing Council declared it will work closely with the Bank of Greece to maintain financial stability.

Given the current circumstances, the Governing Council decided to maintain the ceiling to the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on Friday (26 June 2015).

The Governing Council stands ready to reconsider its decision.

Mario Draghi, ECB President, said: “We continue to work closely with the Bank of Greece and we strongly endorse the commitment of Member States in pledging to take action to address the fragilities of euro area economies.”

Yannis Stournaras, Governor of the Bank of Greece, said: “The Bank of Greece, as a member of the Eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances.”

The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area. The Governing Council is determined to use all the instruments available within its mandate. 

Government needs you to pay taxes's picture

Hey, can the Governing Council come over and help me with my constipation?

Albertarocks's picture

Yeah, all of them are matheticians.  One of 'em could just come over to your place and work it out with a pencil.

BurningFuld's picture

Alpha Bank just ran out of Alpha.

Atomizer's picture

The bank creditors get paid first. Another daylight robbery in progress. 

Latitude25's picture

Just bring in a few plane loads of Yuan and open as normal.  Either that or print Euros anyway within Greece.

Government needs you to pay taxes's picture

Do like our own .gov.  When the going gets tough, ignore the law.  New Drachmas all around!

NOZZLE's picture

Clowns had 5 years to implement some basic reforms and squandered every minute of it by playing a game of chicken; "if we fail you fail", nice attempt at psychology. 

cossack55's picture

Greece is not Iceland.  Who in the world would want sun drenched beaches when you could view volcanoes, bathe in hot springs and visit banksters in prison.  

umdesch4's picture

One of my grandparents was greek, making me 1/4 greek, I guess. I have never been to Greece, and don't have much interest. I have been planning a trip to Reykjavík for a long time now though.

Bemused Observer's picture

They're both major volcanic hotspots too.

Bay of Pigs's picture

Yahoo headline: "Debt negotiators stunned".

LOL...yeah, sure they are.

Racer's picture

The banksters are having a hissy fit cos they didn't get what they want .... money from pensioners, poor and the sick, now they are terrorising the people even more.

Incubus's picture

Humans are like the bacteria in your digestive tract. 


have a terrible diet, the balance gets upset, and bad bacteria outnumber the good.  Your average person is indicative to the health of a society.


Feed a person bad, terrible ideas, and they manifest as bad, terrible people.  Our minds are not unlike sponges.  What you decide to put in there strongly affects the type of man that develops.


Future anthropologists will look back at contemporary society and see us as primitive as we view tribal societies we study these days.



umdesch4's picture

Interesting analogy, and I'm not one of your downvoters. The problem I see, and have seen for decades, is that dangerous sociopaths get into positions of power. I believe that there is far more nature than nurture in sociopathology. It's a question of not having your brain wired for empathy.

Sociopath: a person with a personality disorder manifesting itself in extreme antisocial attitudes and behavior and a lack of conscience.