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.
Huge protests in Madrid, firebombs hitting tax offices in Italy, and voters in Northern Germany showing their anger toward an incumbent leader. Just another weekend in euro land, where the chances of economic recovery and political agreement on how to get there appear less likely by the hour.
The situation in the euro zone has become so bleak that it is giving rise to rumors the euro will be tied to the dollar at close to parity, a dramatic fall, which would have severe implications for the US and China. The Financial Times reports.
Greece's president summoned party leaders on Saturday for one final attempt to avert new elections, but the effort looked doomed to fail after politicians deeply divided over austerity plans said they would stick to their guns.
Turning world events into winning trades. And the Spanish government announces plans to save a battered banking system, with CNBC's Melissa Lee and the Money in Motion traders. Also, will Greece leave the euro zone, with Carolin Schober.
Michael Novogratz, Fortress Investment Group principal, offers investing advice, adding that there's a 70% chance Greece will stay in the euro zone. James Tisch, president and CEO at Loews Corporation, weighs in.
Spain will be offered more time to hit the budget deficit targets it agreed with the EU but only if Madrid meets new conditions, including an independent audit of the restructuring plan for its troubled banks. The FT reports.