ECB Cuts Off Operations With Some Greek Banks

ECB Cuts Off Operations With Some Greek Banks
Huff Post -- Reuters | Posted: 05/16/2012 11:20 am Updated: 05/16/2012 11:51 am


The European Central Bank has stopped some "operations" with some banks in Greece.

Sources are saying some banks are possibly out of money !!!

This is on the heels of massive bank runs in Greece this week.

People have had it I think !

FRANKFURT, May 16 (Reuters) - The European Central Bank has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalised, 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 ECB said earlier on Wednesday it continued to support Greek banks. (Reporting by Annika Breidthardt and Andreas Framke; Writing by Paul Carrel; Editing by Noah Barkin)

Related MSNBC story:

Political leaders in Athens were due to discuss an emergency government Wednesday to deal with a possible run on banks as it emerged Greeks withdrew almost $900 million in a single day, fearing their country could crash out of the euro currency by the end of the week.

An interim government would take the country through to new elections on June 17, triggered by the collapse on Tuesday of talks to form a coalition between winners of the inconclusive May 6 election.

Greeks are withdrawing euros from banks, apparently afraid of the prospect of rapid devaluation if the country leaves the European single currency and returns to the drachma.

Greeks withdraw $894 million in a day: Is this beginning of a run on banks?

Is this the "Beginning" of the E.U. free-fall ?

Is this the "Beginning" of the E.U. free-fall ?

I bloody hope so.

I've been watching this a lot and I believe this week is going to be big in terms of European markets.
There is a tremendous amount of info coming in about this and we should all be watching right now and preparing for what could be coming our way