Fear of Greek Bank Runs Grip Markets
Tweet Send to a Friend
Up)
The situation with Greek banks may have just gone from bad to worse as bank runs may have depleted capital levels at as many as four banks to levels so low that the ECB can't help.
Reuters reported mid-day that the ECB had monetary policy operations stopped with some Greek banks since they have not been recapitalized. The ECB only works with solvent banks and up to four Greek banks had capital levels "so depleted they were operating with negative equity capital." These banks may still be able to go to the Bank of Greece for emergency liquidity assistance (ELA), Reuters reported.
Since Monday, reports of bank runs in Greece have been prominent. The central bank in Greece said at least $894 million was pulled out of banks on Monday as depositors fear Greece would be out of the Euro by the end of the week. A similar amount was said to be pulled out on Tuesday.
National Bank of Greece SA (NYSE: NBG) is down 12 percent, moving to the lows of the session following the Reuters story.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Reuters reported mid-day that the ECB had monetary policy operations stopped with some Greek banks since they have not been recapitalized. The ECB only works with solvent banks and up to four Greek banks had capital levels "so depleted they were operating with negative equity capital." These banks may still be able to go to the Bank of Greece for emergency liquidity assistance (ELA), Reuters reported.
Since Monday, reports of bank runs in Greece have been prominent. The central bank in Greece said at least $894 million was pulled out of banks on Monday as depositors fear Greece would be out of the Euro by the end of the week. A similar amount was said to be pulled out on Tuesday.
National Bank of Greece SA (NYSE: NBG) is down 12 percent, moving to the lows of the session following the Reuters story.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Chile regulators stopped build, imposed sanctions on Barrick Gold (ABX)
- Silver Wheaton (SLW) Comments on Pascua-Lama; 'Remain Confident' in Barrick (ABX)
- InterOil (IOC) Enters negotiations with ExxonMobil (XOM) on Development Of The Elk And Antelope Resource
Create E-mail Alert Related Categories
Market Check, Trader Talk
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
