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ECB Stops Monetary Policy Operations To Some Greek Banks
Update: some additional color from MNI, as Europe scrambles for damage control:
The European Financial Stability Facility (EFSF) is expected to approve an E18 billion recapitalization disbursement for Greek banks within the next four days, and the banks should get the money within a week, a senior Eurozone official told MNI Wednesda.
Earlier today MNI reported that the European Central Bank was growing nervous about delays in the recapitalization program for Greece and was threatening to suspend its lending to Greek banks as a means of expediting the decision.
"This has been a point of concern for the last month, and it was debated during Monday's Eurogroup meeting, where ECB President Mario Draghi and EFSF head Klaus Regling were present," the official said. "Up until then, the EFSF had sided with the Greek Financial Stability Fund, which was delaying the recapitalization process because it disagreed with certain points of the assessment of Greek banks' eligibility for the funds," he explained.
Just as we predicted moments ago, and as Dutch Dagblad warned overnight:
- ECB STOPS MONETARY POLICY OPERATIONS TO SOME GREEK BANKS AS RECAPITALISATION NOT IN PLACE -CENBANK SOURCES
From Reuters:
The European Central Bank has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalized, euro zone central bank sources said on Wednesday.
The ECB declined to comment.
The ECB only conducts its refinancing operations with solvent banks. With no access to ECB funds, the banks concerned must go to the Bank of Greece for emergency liquidity assistance (ELA).
It was unclear exactly how many banks were affected.
One person familiar with the matter said four Greek banks' capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation.
The beginning of the end? Or just more political posturing? In the meantime, EURUSD tumbles.
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Definitely picked a bad week to quit sniffing glue.
Shit's getting ugly! Gonna need more lipstick!
Buy ULTA!
Heh heh....please stop the car....I think I'm gonna hurl.
Would going to Europe this summer be a bad idea? Gold is too heavy too carry. How about some precious gems? (The first half of my question is serious.)
for awhile the USD, is goona be strong and buy alot fo stuff. Enjoy it while we can.
"A While..." being until January 1, 2013, when TAXMAGEDDON hits.
•The individual income tax rates will rise to 15%, 28%, 31%, 36% and 39.6%.
•The long-term capital gains will be taxed at a maximum rate of 20%.
•Dividends will be taxed as ordinary income.
•The phase-out of personal exemptions for higher-income taxpayers will be reinstated.
•The limit on itemized deductions will be restored.
•The child tax credit, adoption credit, and dependent care tax credit will all be cut back.
•The “marriage penalty” will be restored.
•Education incentives will disappear altogether, or be significantly cut back.
•The elevated estate tax exemption of over $5 million is scheduled to fall to $1 million, and the top rate will revert to 55% from 35%.
•The alternative minimum tax (ATM) patch which increased the amounts exempted from this tax will reset to lower amounts, subjecting a larger group of middle income taxpayers to the AMT.
FlyoverCountryS...
Will it stop Illegals from filing IRS 1040's, and claiming nieces and nephews as dependents(who LIVE in Mexico), and gettig $26,000 back from the IRS?.
In just one instance four illegals used one legals address, claimed 20 dependents(not dependents,in Mexico), and together got back around $40k in OUR tax dollars..........using fake SS #'s and address, and fake dependents.
The HEAD of the IRS knows this is going on, and refuses to speak to the issue......................thus far, in 3yrs, its cost US Taxpayers well over 4 Billion dollar in fake returns.
AND not one soul in the IRS gives a shit.
So, wtf are we still filing at all?
In other words, we will be back to the days when this country ran budget surpluses, and the debt was getting paid down. What a terrible idea! I managed to survive and prosper during those days, somehow I don't think this is gonna kill me, though it will effect my income enough to notice. So fucking what?
We need to cut spending, yes. Lots of it. But the taxes also have to revert to 1998-ish levels, or we will face a true financial armageddon - this taxmaggedon bullshit is the rich crying wolf, again. If all these things were to happen, i.e. reversion to levels of 'the good ole days'; the world will not end. Never happen, our craven, bought and sold congress will make sure we continue along the path the total, complete debt serfdom.
Cuts AND taxes, biltchz! Or does math not apply to fiscal policy?
no, i think is a very good idea ... you might find some good bargains. i went through athens airport a couple of days ago, never seen so many americans coming through ....
Want to pay for that trip?
Tenet Healtcare THC down another 2%.
lol
Selling MOBs isn't sustainable growth.
Air pockets below, so put your tray table up, seat fully forward, and buckle up, bitchezzz.
Reserve a center-balcony table for me at Le Grill at Hotel de Paris. 8pm then we'll hit the tables.
Greece leaving the Euro
is actually a great thing and very bullish to the Euro.
Time to go shopping, Guys.... :-))
...and so Spain leaving would be XX Mucho Bullish?
Should be a great time to visit Santorini cost wise. And people there are older and more relaxed. But Id avoid Athrns and all the party islands like Mykinos or Ios and the big tourist ilse of Crete. To many young people there.
Spain will be a mess. It will suck if these asshole rioters ruin Barcelona and Madrid. Beautiful cities. Pamplona will probably Devolve into out right rioting. Major cities in Italy will also be risky. We ran into more protestors and violence in Rome and Florence then anywhere else in Europe (we were in Europe for 2 months last summer durimg all this). The French and Italian Rivereas will be fine as always.
Id tell you to avoid big cities. Do like Cannes, Nice, Theoule, Monte Carlo, Italian Riviera (cinqa terra). Switzerland, Austria and Luxemborg. MAYBE Bennelux (not sure).
I'm going in a few weeks with my 16 year old son. Feeling a little queezy right now.
Rumor has it that Louk lives up to his name. Bring along some chorizo and you will be fine.
Only a matter of time until 1.27 is in the rear view mirror...
Edit: Well, we got 1.268 followed by a stick save.
WWZD (what would Zeus do)?
ALL YOUR GYROS ARE BELONG TO US!!!!
A 6 Euro (Drachma?) Gyro is going to be a 20 Euro Gyro once the plebes empty all the ATMs at the first bank of Olives.
Send the Repo Men to grab the Acropolis.
Soros likely holds the title already (via NGO proxy, of course). Like all other holders, he's just going to sit back and let the "political process" work it's magic in diminishing the strength of the opposition.
At least that's what I'd do if I were a billionaire "philanthropist."
Yes, you did...
http://www.youtube.com/watch?v=GeI5ke0BENw
I'm still sniifin ... double nostril Bro!
HOLD THE PRESS!!
Hearing rumors that 50 Euro limit on ATM withdrawls now in effect in central Athens and surrounding areas!!
Anyone else hear this?
Rumors have had the ATMS empty for days.
But what's the limit on Drachmas?
Can't happen soon enough.
'The ECB only conducts its refinancing operations with solvent banks.'
HA HA HA HA!
I am shocked ... SHOCKED ... to learn that some insolvent banks may have attempted to put taxpayers' money at risk!
The beginning, bitches!
the beginning?! ... I thought we were at least at the 7th inning stretch ...
It's the end of the beginning. What happens from here on out is anybody's guess.
But hey, those 30% 10-yr bonds are a NO BRAINER, right JPM?
US markets rolling over.
and rolling back
Wow, that was fast. Some had their finger on the 'buy' trigger.
+1
hahah "rolling over" less than 0.10 %
(ok i spoke too soon)
aaaand back down again. Could be crazy day.
Battle Bots, FTMFW!
Could be?
hahahahahahahahaha
Roller coaster, bitcheezzzzzz
(Forgive me, I'm ON today and making money hand over fist. Tomorrow I'll probably get creamed...)
I was wondering what brick wall the market just smashed into...
It's called reality.
But no worries, looks like we have a V-shaped recovery in the Dow at least. Haha.
This is bullish...right? Right?
I KNEW it.
Always.
I recently got ripped by some Europeans because our currency is all the same color. How do you like us now?
They're just ticked 'cause they don't have the contract on the bazillion gallons of toner that's gonna be needed.
If you're talking about US FR notes, that isn't the case anymore--the $10 bill is freaking purple! The $5 note is looking a bit unhealthy red, too.
Hehe.
http://imgace.com/pic/2011/09/us-monopoly-money/
It is a little enhanced but I think the joke is on US.
The beginning of the end of Greece or of Euro or of both?
Both-plus.
the euro machine will soon stop working completely if there is nothing to greece it with..
Euro bank solvency will stop if there is no Greece through which to funnel fiat from the ECB, et al. to the banks
But But The Euro dream!!! That big modern tower of Babel and all that shit.
am I crazy to think that as the weak countries exit the euro, the euro would strengthen?
If the weak countries weren't in hock to the others for massive, system-threatening amounts of money, then possibly.
Sadly, the PIIGS will take the rest down with them.
And of course, we are led to believe that the US banks have no exposure to any of this trash?
We have decoupled? LOL.
Excellent point.
I talk to too many ignoramuses that think when EU explodes, US will be just fine and dandy, we are separated by an ocean after all....what a joke. As we're seeing, and have been seeing for some time, turmoil in EU means turmoil in US markets. When the system is soooo propped up and manipulated, even an errant unannounced fart [JPM] can send things tumbling, the collapse of a major world economy is kind of a big deal.
The US dollar will do well short term as EU explodes since it is still seen by the masses (with short memory apparently) as a safe haven asset, until it isn't. Reality will eventually set back in and people realize US is in extremely poor shape financially and probably should have been leading EU in terms of implosion/explosion rate.
For all the Ron Paulers (and this will probably earn down arrows), he is unelectable by current USA until a major collapse actually passes...unfortunately, at that point, hard core socialist/communist/totalitarian are also very electable as their moto is "never waste a crisis" and will be ready to pounce.
Generally, realistic opinions don't get down arrowed.
This is truly the beginning of the end of the EU... next you'll hear France heading to the doors followed by BANK RUNS IN EVERY EU COUNTRY followed by MASSIVE PANIC BUYING OF PM!!!!!
GET READY BOYS!!! ;) The EU disintegration I talked about is about to come to fruition...
Scuse me, mista, but after 4 years of seeing nothing happening I'm skeptical.
I've got my PMs and all, but at the moment the Japan scenario seems most likely to me. I wouldn't be surprised if we stayed in this Schroedinger cat state till 2020. Just saying...
Everything comes in cycles. We had 10 months of calm (14 if you use a broad step) and now we have ? months of the chaos effect...
Be patient grasshopper...
Its only a flesh wound !!!
Popcorn check
Beer check
Blow check
Widescreen TV check
I am ready!!!!
Blow ain't good for you
Are we speaking of the noun or verb?
Obviously neither.
you forgot hookers
Oh shit
Gotta have hookers
Hey Joe, your logical call last night on the market today - how's that doing for yah?
(Just tweakin' - I love yuh.)
This does not matter, as the European equity market will be closed shortly, and everything will be fine again.
And anyway, no one on the BlowHorn [CNBC] is talking about this, so it truly is not important.
That first step (down) is a doozy.
Old Paratrooper jodie chant:
Oh, jumpin' out of planes is really fun.
Oh, jumpin' out of planes is really fun.
The experience is rich,
But the first step is a bitch,
Oh, jumpin' out of planes is really fun.
Facebook will save the day!!
By the time Zuckerburg gets his money he should be able to buy a loaf of bread with it...
Actual Tyler that is in fact a HelpDesk call.....print server is broken ;-)
Maybe we can finally get to the real news.......did Roger Clemens lie about using steroids?
That and the President is gay and there's a war on women I guess.
Yes, enough of this global financial meltdown crap that is just a distraction for the real important news.
Killtruck, indeed, it is bullish.
Bullish as bullish can be.
And pointless, too. Don't forget - above all, it's pointless.
Headline whiplash. I sense a flash crash sooner rather than later...zero bid coming to a stock near you.
I have no stocks near me...just neat piles of metal stuff. :D
Prepare the bailout for whatever mentally retarded [my apologies to regular retarded people] firm that has been selling all of the VIX ETFs, while buying XIV and selling straddles on the spot. Nothing unwinds faster than complexity.
I'm sure, when the bailout is announced for this menaly retarded firm, it will be for the good of the nation.
Does this fade this morning's housing starts?
yeah no more bailouts, i would say so.
I expected markets to open green on the housing farts news and then trim down back to baseline and then to 'follow' whatever 'news' came out throughout the day. Alas, I was wrong, which is why I don't play in this sandbox. I sit on the bench and watch the kids get dirty.
Bank run bitchez!
Red line that Vespa to the bank!!!
Big queue at the cash machines in Greece tomorrow, I suspect. When the cash machines start running dry and aren't being filled...
As a PR Guy I would put out a press release that it was a technical or network problem and that normal service will resume after the 'bank holiday' that's just been announced.
If you are in Greece, get your money moved now guys.*
* (does not constitute investment advice.... just common sense)
DogSlime
700 billion Euros already left Grease, and that was weeks before this............................just like the Frogs, jumping the Channel.............taking their fiat to U.K.
greece exit is good for EURO no? greece is the main trouble maker so...
or am going contrarian contrarian here..
greece is just the first domino. Spain, portugal, ireland, italy, among many others following Greece soon enough
Where are all of those newly printed and withdrawn EURs going?
Check out the latest from the Capital Research Institute (CRI)
The Greek Dilemma
Do as we tell you or we will stop funding all your banks! Got it?
Is anything actually happening or did it just go down a bit and then back up a bit? Is this a real story or one of those "nothing to see here, just move along please"?
While everyone is concentrating on the EUR/USD, has anyone noticed the NZD/USD? WTF is going on there? NZD had been getting hammered!
merkyl to greece, one last time http://www.evtv1.com/Player.aspx?itemnum=5777
Well I wonder if I should keep my money in the Greek Banks or not........??????
I kind of feel sorry for them...but then I don´t.....
Its a very vicious coin toss where your guess is as good as someone elses
Pick your poison since its all just a coin coss at this point
PS - The correct answer of course was to convert as much Euros as possible in to USD and/or PM and wait on the sidelines with a tub of buttered popcorn. Unfortunatley that would have required a degree of cynicsm and mistrust of ones elites that not all have; ie that should have been done YEARS ago.
Your first instinct was the right one. Feel sorry for them. We should always feel sorry for people that are being used and abused without their knowledge and that is what's happened to most Greeks, a very small minority is responsible for this. Chief among them are the financiers in the USA that engineered the loans that they should have never gotten.
Until next time,
Engineer
I respectfully disagree - the squid was hired by a batch of (elected) corrupt greek politicians to cook their books. Selfsame politicians have (PASOK and New Democracy) been milking the system for years paying out and off for the votes to keep them in power, outdoing one another for give-aways to get re-elected. Take a good look at former fatboy finmin, head of party Venzelious - this obese head spokesperson for austerity who looks like he has never practiced austerity a day in his life.
The US financiers were just hired hands doing what they do best, cookin' the books and skimming a bunch off top before exiting stage left.
We are building up to something it would appear. One can feel that D undertow.
This reminds me of the time my Mother was giving my brother money to pay off his credit card debt but he was just spending it on his various "hobbies". Oops.
Largest overall economy in the world in turmoil, Japan is a nuclear fallout area, US congress doesnt work, but yeah, suzy can post pictures of her cat on the web for her friends to see, so bullish baby..
Hey, we should be more like Europe! They have free shit and great pensions. Here in the US, we have to work for shit. Dammit.
yeah, sure, if you havent been paying attention, hard work in america gets you one thing... tired.
work for shit...LOL... yeah you keep believing that wall street work hard for their 10 million dollar annual paycheck.
Seriously, the US is a case study in anomie--we think we're working towards some goal, but they keep moving the goal further and further out, so all we really experience is cognitive dissonance.
Nah, the goal only seems like it is moving away cause the constant inflation is dragging your ass farther back while some bankster kicks back and earns their skim.
Mafia has got nothing on the bankers.
Everybody has to determine their own utilities and where the margins lie. In my case hard work is paying off but i will go galt as soon as it doesnt
Government in the usa has yet to figure out how to tax idleness and nonpoductivity
Maybe we are finally going to break out to the downside on EURUSD and Spider. I was perplexed as to how long the PPT and their teammates were able to keep EURUSD above 1.30. Noe they must be really scrambling! This should be interesting.
But but but I heard the bank run was all a figment of your imagination Tyler!?!
die already, euro! die!
and the hf robots follow the news into the ditch
time to buy the meaningless news dip, because the money will flow anyway sometimes later
volatility exceeds parameters = QE3
I may have to finally take the wife to Greece, after it settles down a bit.
Yeah, after half the population kills the other half. I'm sure it will all turn out fine when there's about 3.5 billion people on the planet instead of 7+ billion.
Don't think Mad Max scenarios are likely. Eventually Greece will return to the drachma. Their tourism industry will boom. Pensioners and gov employees will take a hit, but that's already happening.
yeah, greece will be dirt cheap after exiting the euro, but i have my doubts about the future service quality.
Do hft's algo's have ZH in the cue? For perspective and balance. You can see them going haywire with all of the headlines.
WTF....GE up 3.3%???
So, are we going to go through months of Greece "news" that moves the market up on good rumors and retraces about 30% of gain on denial of rumor??
Saw interesting article yesterday about people who have been foreclosed on getting fresh new mortgages from FHA (3.5% down). Man....gotta love those tough new banking rules that protect us from any more trouble! And they say home builder sentiment is way up....duh....sub-prime is back baby so our dull-witted, lazy, unskilled, uneducated, overweight populace can buy new cars and houses again!!!!
Sell the Rips, buy the fucking Dips. Who needs any kind of fundamentatls to trade stocks on these days?
Wait til they see "Greece Exits Euro"...
"Debt Default across Eu"
"JPM files Ch 11"
CNBC is so pissed at ZH right now without naming them directly for putting these "rumors" out.
positive rumours are good, negative ones are bad in their minds
Still sleeping thru all this eurobullshit - wake me up when something REALLY happens - zzzzzzzzzzzzzzzzzzzzz....
Anyone want to go to Santorini with me this summer to look for beachfront property to buy.
wait till global liquidity drys up....then and only then buy assets (Greek or otherwise).
I think next year might be a good bet...but who knows how long this insanity can go on for.
Next year is a good bet as the new political class will no doubt be focused on austerity. Good time to pick up some deflationary bargains.
pods
Anyone want to go to Santorini with me this summer to look for beachfront property to buy.
No but i'm booking a Greece trip as soon as they go back to the Drachma. Dollar should go a long way there when that happens.
A trip lasts a week. A beach house in Santorini lasts a lifetime. Or at least untill they burn it down or global warming sinks the island.
But if you can pickup a beach house for the same cost as a trip - who csres. Santorini residents will probablu be the last to figure out whats going on. Island to too beautiful to sit inside watching CNBC. Not easy to get to an ATM. So lots of local retirees with 100k euros in the bank will wake up with 100k Drachma and their 90k euro mortgage will convert to 9mm drachma. Go in with some USD or gold (which you can buy in portable form at any forex office in nearby Turkey)
I think you might wait a year or two until things settle down and they have all the bodies buried.....
All of what follows is speculative political speech delivered by a US citizen from within the United States:
Wow, it's just amazing how well the various "Tylers" predict the future, particularly the future as it depends on the actions of the central banks and primary dealers. How many articles incorporate the phrase "Just as we predicted X minutes/days/weeks/months ago, our prediction has become manifest?"
See: http://www.google.com/search?q=zerohedge+%22just+as+we+predicted%22&ie=U...
I predict that these predictions will continue with supernatural regularity - for people in the business of predicting, what conclusions do you draw from uncanny prognostication? And I don't mean the responders I am about to draw that will glom on down-arrows and malice. I mean actual third-party readers of this site - life is unpredictable, but not here in so far as the predictions relate to the actions of central banks and their best.
Also, as the entire exercise is fixed, I would follow the advice of the Tyler's to the letter right up to the point that they take everything from you. Trouble is you'll be so used to "winning" you won't know when you are about to lose it all. Good luck and place your bets. The house is sitting next to you.
You're pretty new around here aren't you?
You're much higher caliber of troll than usual, but you still fail to provide any facts to backup your assertions. Welcome to fight club, bitch!
What do we expect from a Safari user?
Sorry I missed your two week birthday. Happy belated birthday.
Welcome to fight club.
The "Tylers" come to work everyday and try to un-bury the truth. A truth that in reality an army of media shills, politicians, bureaucrats, technocrats, banksters and financial industry leaches, work ruthlessly to keep hidden. They use every means at their disposal to accomplish this including, media hyping, unbalanced reporting, bending/falsifying statistics, and plain lying. I think that when, inspite of these odds, the Tylers are successful a little self congratulations is in order. Almost anytime the Tylers post an "I told you so" there is an accompanying link to the post in question verifying that they indeed told us so. You won't get that on CNBS.
The only difference between the euro and gold is the color.
That said I find it uncanny that the value of a large international company depends entirely on the name of the Greek prime minister. In other words, whoever chairs a major company in the world is irelevant because the value of his or her company depends on what the Greek parliament decides. Well, if it's not true explain to me why stock markets across the world have risen and fallen over the past few months.
Yep, couple of keystrokes and bam! Krugs fall from the sky.
pods
OFF TOPIC-
BREAKING NEWS TD
Whitney Tilson to appear, yet again, on Fast Money Halftime to explain why he is adding to his JCP position
Endgame.
From Reuters (via ZH tweeet) - "One person familiar with the matter said four Greek banks' capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation."
http://www.reuters.com/article/2012/05/16/us-ecb-greece-banks-idUSBRE84F...
YIKES! That can't be good news.
Woman lying on her back staring at the ceiling: Just get it done already!
It's about time someone had the guts to cut off a bank from the public trough.
Cmon Tyler, quicker, gotta keep up with those trader twitter rumors as the market is shooting back up so apparently Greece is fixed now
Tyler(s) Please run a story on how much the US is out on Greece if they stiff the IMF, would be interesting to know how much our one worlder president cost us. I think its around $30B but not sure.
Good Point.. It would be nice to know the numbers
Also any indicators on whos gold we are holding
Yeah, both good points. Would be interesting. I think most of the data should be here on ZH already(?), since it has been covered for years now LOL!
Merkel and Hollande decided last night that Greece is too expensive to save.
Italy and Spain are much closer connected to Europe and the Euro. Some risk of contagion but the benefits for Italy and Spain outweigh the downside.
Greece is done. Euro will stand, Euro Fiscal Union is coming next.
Was it Junker that made the press-announcement? /sarc
Wait for a few weeks until El hombre del manana pays them a visit, you'll see they'll change their minds again!