ECB Stops Monetary Policy Operations To Some Greek Banks

Tyler Durden's picture

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:


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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Dumpster Fire's picture

Definitely picked a bad week to quit sniffing glue.

CvlDobd's picture

Shit's getting ugly! Gonna need more lipstick!


GetZeeGold's picture



Heh heh....please stop the car....I think I'm gonna hurl.


Bleeding Fart's picture

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.)

crawldaddy's picture

for awhile the USD, is goona be strong and buy alot fo stuff.  Enjoy it while we can.

FlyoverCountrySchmuck's picture

"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.

DosZap's picture


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?

Nobody For President's picture

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?

Arius's picture

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 .... 

hedgeless_horseman's picture



Want to pay for that trip?

Tenet Healtcare THC down another 2%. 


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.

He_Who Carried The Sun's picture

Greece leaving the Euro

is actually a great thing and very bullish to the Euro.

Time to go shopping, Guys.... :-))

hedgeless_horseman's picture



...and so Spain leaving would be XX Mucho Bullish?

RoadKill's picture

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).

indygo55's picture

I'm going in a few weeks with my 16 year old son. Feeling a little queezy right now. 

pods's picture

Rumor has it that Louk lives up to his name. Bring along some chorizo and you will be fine.

Alea Iactaest's picture

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.

bdc63's picture

WWZD (what would Zeus do)?

ihedgemyhedges's picture


mayhem_korner's picture



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.

Carl Spackler's picture

Send the Repo Men to grab the Acropolis.


NotApplicable's picture

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."

Shleprock's picture

I'm still sniifin ... double nostril Bro!

jus_lite_reading's picture


Hearing rumors that 50 Euro limit on ATM withdrawls now in effect in central Athens and surrounding areas!!

Anyone else hear this?

Marginal Call's picture

Rumors have had the ATMS empty for days.

NotApplicable's picture

But what's the limit on Drachmas?

ebworthen's picture

Can't happen soon enough.

machineh's picture

'The ECB only conducts its refinancing operations with solvent banks.'


I am shocked ... SHOCKED ... to learn that some insolvent banks may have attempted to put taxpayers' money at risk!

Brak82's picture

The beginning, bitches!

bdc63's picture

the beginning?! ... I thought we were at least at the 7th inning stretch ...

FlyoverCountrySchmuck's picture

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?

Yikes's picture

US markets rolling over.

catacl1sm's picture

Wow, that was fast. Some had their finger on the 'buy' trigger.

VonManstein's picture


hahah "rolling over" less than 0.10 %

(ok i spoke too soon)

Yikes's picture

aaaand back down again.  Could be crazy day. 

Nobody For President's picture

Could be?



Roller coaster, bitcheezzzzzz


(Forgive me, I'm ON today and making money hand over fist. Tomorrow I'll probably get creamed...)


junkyardjack's picture

I was wondering what brick wall the market just smashed into...

navy62802's picture

It's called reality.

But no worries, looks like we have a V-shaped recovery in the Dow at least. Haha.

Killtruck's picture

This is bullish...right? Right?

I KNEW it.

Slope of Hope's picture

I recently got ripped by some Europeans because our currency is all the same color.  How do you like us now?

mayhem_korner's picture



They're just ticked 'cause they don't have the contract on the bazillion gallons of toner that's gonna be needed.

aerojet's picture

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. 

tarsubil's picture


It is a little enhanced but I think the joke is on US.

surf0766's picture

The beginning of the end of Greece or of Euro or of both?

saturn's picture

the euro machine will soon stop working completely if there is nothing to greece it with..

viahj's picture

Euro bank solvency will stop if there is no Greece through which to funnel fiat from the ECB, et al. to the banks