The European Central Bank has reacted to uncertainty over Greece’s future in the eurozone by excluding four of the country’s banks from its regular liquidity providing operations.
Daniel Stecich, TJM Institutional Services and CNBC's Rick Santelli discuss the ECB and credit risk, and Greek recapitalization.
CNBC's Brian Sullivan has the latest details on a conflicting report the ECB may consider stopping monetary policy operations to some Greek banks.
When Greece announced on Tuesday that it had made a €436 million bond payment to the hold-out investors who rejected the country's historic debt revamping deal in March, the decision came as no surprise. What’s news is where most of that money went. The NYT reports.
Austerity is imposing intolerable unemployment and political chaos in Greece, and won’t permit it to repay its debts. Athens must abandon the euro and reintroduce the drachma.
The governor of the Bank of England said on Wednesday that the euro zone is “tearing itself apart without any obvious solution" as he admitted that the UK central bank, the Financial Services Authority (FSA) and the government have been discussing contingency plans to deal with the prospect of a Greek exit from the euro or a collapse in the euro zone “for some time.”
A senior executive at a Greek bank says the pace of withdrawals has slowed further on Wednesday, after a large spike on Monday. Late Tuesday, data inadvertently revealed by the country's president showed 700 million euros ($889.7 billion) worth of withdrawals on Monday alone.
“Very little of the bail-out money so far has gone to the Greeks. It has all gone to the bankers,” one analyst tells CNBC.
A potential exit by Greece from the euro, even if it leads to a run on European banks, would not bring down Portugal’s banking system, the chief executive of Portugal’s largest publicly listed bank told CNBC on Wednesday.
Financial markets across the world are facing a “vortex” of uncertainty due to the euro zone and the high risk of Greece defaulting on its debts, according to Carl Weinberg, the chief economist at High Frequency Economics.
When Greece announced on Tuesday that it had made a €436 million bond payment to the hold-out investors who rejected the country's historic debt revamping deal in March, the decision came as no surprise, the New York Times reports.
Recent volatility serves as yet another reminder that markets cannot be divorced from developments in the global economy — and especially at a time when the 17-member construct of the European monetary union is being increasingly questioned on account of what is happening in Greece.
CNBC's Michelle Caruso-Cabrera reports that a transcript from a Greek meeting shows deposits have left the banking system.
The risks of a Greek exit from the euro zone could include a spiral downward for the bloc that will include financial turmoil spreading to the rest of the euro zone’s peripheral economies, the chief investment officer of Citi Private Bank said on Tuesday.
Euro zone finance ministers are calling talk of a Greek exit from the euro zone simply “propaganda,” even as the market awaits news on whether Greek politicians can agree to form a new government and meet its commitments to the European Union and International Monetary Fund.
Fears that the euro zone’s firewall will prove insufficient to shield Spain and other embattled countries against the effects of a possible disorderly Greek exit from the currency union hit European financial markets on Monday.
Arthur Hogan, MD, New Products & Strategy, Lazard Capital Markets says the contagion effect from a Greek exit is the biggest risk in Europe.
Amelia Bourdeau, Westpac Institutional director of foreign exchange, offers her view on the euro ahead of the euro zone's Q1 GDP data tomorrow. "There will be continued headlines about the Greek risk," she adds.
Greece has a 436 million euro principal repayment due Tuesday. So far, the country has not decided what to do.
Angela Merkel’s conservatives failed to win back power in Germany’s most populous state on Sunday in an election widely seen as a key test for the German chancellor and her austerity-driven crisis-fighting strategy.