“… suddenly the reality of a Greek bail-in which could amount to up to 100% of total Greek deposits, becomes all too real. “
– For The First Time Ever, Total ECB Claims On Greek Banks Surpass Total Greek Deposits (ZeroHedge, June 22, 2015):
If it seems like it was only yesterday (in trading days) when the ECB boosted its latest Greek ELA by €1.8 billion to a record high €85.9 billion, it’s because it was.
Fast forward to Monday morning, when following a Friday bank run which sucked out another €1.6 billion coupled with another €1.6 billion withdrawn over the weekend and today, and perhaps the only question is why did the ECB not hike its latest “emergency” ELA disbursement more than just another €1.9 billion to a new record high of €87.8 billion: after all it will have no choice but to increase its emergency liquidity for Greece’s increasingly more insolvent banks (because the collateral against which the ECB is lending after a modest haircut would be worth precisely zero if the ECB were to pull its backstop to the Greek banking system) tomorrow, or else engage Goldman’s plan B in which a Greek terminal bank run ends up in a default and as a result the ECB proceeds to boost its QE to “regain credibility”, send the EUR plunging (to assist the internal revaluation), and assure another year of record bonuses for Goldman. Continue reading »