Greeks Laugh As Bankers Beg Depositors To Return Money

Tyler Durden's picture

Via Keep Talking Greece,

President of Greek Banks Association Louka Katseli appealed at the citizens to return their money to the banks. “Banks are absolutely trustworthy,” Katseli told Mega TV “as guaranteed by the ECB and the Bank Association, but they would have been even more powerful if 40 billion euros had not been withdrawn in the last months.

Katseli, a former PASOK Minister, appealed to citizens to return their deposits  to the banks “now that the banks are open” after a three-week holiday and capital controls.

“Let’s all help our economy,” Katseli urged Greeks and added “If you take your money out of your chests and houses – which are not safe in any case – and deposit at banks, this will enhance liquidity.”

“There will be no need to “haircut” deposits in the future if we all act responsibly,” she added -cheerfully I suppose.

Katseli’s appeal triggered laughter among Greeks and one stressed with hint to capital controls “Oh yes! I will bring my money back to the bank and get it back 60 by 60 euro.”

Another one noted “Ah sure! Banks will never see my money again, I prefer to buy tonnes of peanuts with it.”

A third commented “Certainly. And the banks will go bust after a while…”

A fourth reckoned a very unfortunate incident in 2010 and busted into tears and laughter. Back then Finance Minister Evangelos Venizelos had appealed to the Greeks to buy Greek bonds. The man invested 10,000 euro to help Greece. Two years later, his investment underwent a 53%-Haircut due to the PSI. Now the nominal value of his investment is …”I don’t even open the envelopes coming from the bank anymore, too frustrating,” he told me.

How can Greeks trust the banks after what has happened? Already many worry about their deposits as mergers of Greek banks are reportedly due. Even though they know that merger do not end in losing your money. Or does it? huh?

* * *

Incidentally, this is justt as we predicted last week. In "Greek Banks Just Became A "Strong Sell" At Any Price" we wrote:

... even as an "unsustainable" Greece meanders day to day with yet another capital infusion to avoid a sovereign default, its insolvent banks just became the first casualty of reality. However, they may not be the only ones: recall that bank depositors are nothing more than unsecured creditors. If and when the reality of the Greek economic collapse is fully tabulated (as the IMF appears to have finally done) it won't be just the equity that is wiped out - depositors themselves face the risk of creeping haircuts to their "liabilities."


Which is why we doubt that Greek savers will rush to put their money in the banks, and why we think Draghi is taking a huge gamble by putting even more ELA into Greek banks just before the same banks will announce at any possible moment they are forced to liquidate existing shareholders. The popular outcry against the banking system once a bail in is confirmed, even if it does not involve depositors initially, will send shock waves through society and rekindle the bank run once more.


Ironically, the one thing that would help preserve confidence in the Greek banking system, is more transparency about the "performing" nature of Greek bank loans: if this amount has hit 50% (or more) on the total €210 billion of loans, then depositor haircuts become virtually inevitable - anything well below that and there would still be a modest cushion before bail-ins have to go up in the cap structure.


Which is also why we fear no transparency will be forthcoming and why we expect that people may be fooled once again into believing their savings are, well, safe only to find out the hard way they are anything but - a hard lesson that investors in insolvent Greek banks are about to learn first hand.

Sure enough, so far the score is transparency 0 - propaganda: +∞. And as duly predicted, the bank runs continue.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
JustObserving's picture
 "Banks Are Trustworthy"

About as trustworthy as Greek politicians.  Or as trustworthy as US politicians like Hillary, Or the Nobel Prize Winner.

Four chan's picture

i need a change i can beleive in.

Pladizow's picture

Rapist: "Come back i'll use a condom!"

Waylon Bits's picture
Waylon Bits (not verified) Pladizow Jul 21, 2015 10:37 AM

"Banks are safe and your home is not"?  LOL... we home has a better battery and more arms than we see at the bank here.

nope-1004's picture

“Banks are absolutely trustworthy,” Katseli told Mega TV, “Let’s all help our economy... If you take your money out of your chests and houses – which are not safe in any case – and deposit at banks, this will enhance liquidity.”


MDB, is that you?



pods's picture

This is so comical I see a movie in the works.

"Brokebank Mountain."

Same sort of plot line, but only 1 party is willing.


Dr. Engali's picture

The bankers won't even give them the courtesy of a reach around.

asteroids's picture

Greek banks were bankrupt years ago. These are German banks with Greek names. Same thing will happen in Portugal, Spain, and maybe Italy soon.

tmosley's picture

Distrust of money/banks/politicians, once awakened, develops insomnia.

People will never understand until it happens to them, then they will instantly comprehend it, and remember for the rest of their lives.

Herd Redirection Committee's picture

This is like Mugabe asking white farmers to come back and work on the farms they left...

Elliott Eldrich's picture

"Distrust of money/banks/politicians, once awakened, develops insomnia."

Any system that says "we have no use for you" to a majority of the population, will eventually find a majority of the population saying the same thing in return.

StychoKiller's picture

Hey, they "promised" not to cum in yer mouths this time, what more do ya want, Spidey towels?

e_goldstein's picture


<--Greek Fire

What the Greeks should show up to the banks with.

NoVa's picture

Boomerang effect of Fractional reserve banking, and payback is a Bitch.  

Paveway IV's picture

Oh man... and the Greek banker bonuses were going to be absolutely insane this year. Like insane amounts of hookers and blow for the bankers' hookers and cocaine dealers.

Greeks refusing to exchange their cash for banker IOUs means the bonuses are going to be thousands of euros smaller. Damn you, cruel Greeks! You're doing this on purpose to the bankers, aren't you? 

You have angered your money-changer masters. Expect their wrath.

GotGalt's picture

LOL, you are right, that is challened MDB scribe for sure!

Fourmyle's picture

Lots of boats in Greece. Aegean sea can safely hold with at least as much ease withdrawing deposits. Open 24/7 too.

pmbug's picture

Reminds me of that scene in Mars Attacks where the Martians are shooting everything in sight while saying, "We come in peace."

DeProgrammed's picture

"Do not run, we are your friends!"

cowdiddly's picture

Never, ever trust a man that says "trust me".

Temporalist's picture

They don't give change in drachmas...

mtndds's picture

The clown who said this must be high as fuck.  

Byte Me's picture

I changed my underwear this morning, - I can believe in that.


chosen's picture

I quit wearing underwear.  Saves a lot of time and effort and money. Plus, people tend to stay away from me, so I am less likely to get sick.

Miffed Microbiologist's picture

Maybe instead of peanuts that guy should buy toilet paper. Frankly we're considering a few tons of it may be the best retirement nest egg we could have.


svayambhu108's picture

I trust his experience after all if you eat peanuts you can wipe your ass with big leafs. But if you don't have anything to eat, toilet paper is useless.

CrimsonAvenger's picture

I just wear a sombrero and a wet suit. Because nobody's gonna fuck with a guy wearing a sombrero and a wet suit.

This is it's picture

First this public service announcement, next a house to house raid.

ZeroPoint's picture

There is a reason why coin hoardes are still found all over England.....

_ConanTheLibertarian_'s picture

Thrust me... from behind

Latitude25's picture

APMEX alone has sold nearly 20 tons of Silver Eagles in the 20 round tubes.

earnulf's picture

AT $440 a tube, that works out to $22/oz.  What was the paper price again?

froze25's picture

That price is wrong, you can buy a tube for $384 with shipping.

KnuckleDragger-X's picture

The Mattress National Bank is doing well......

Utah_Get_Me_2's picture

'Never trust a Greek whose broke! He money in the basement, hidden in the mattresses.. all Drachmas!'

-Mr. Panos

BoPeople's picture
BoPeople (not verified) Jul 21, 2015 10:30 AM

Maybe if there was a compromise situation and the banks were in no way tied to and run by Schaeubel, the ECB and the BIS.

Then maybe some trustworthy people could be found to run the banks.

i_call_you_my_base's picture

Need spiderman towels.

Dre4dwolf's picture

lol people just spent months tryingnto get their money out no way they will rush to put it back..... only an idiot...