ECB Prepares To Sacrifice Greek Banks With 50% Collateral Haircut…(You Know Where This Is Coming,Right?)

Wednesday, April 22, 2015
By Paul Martin

by Tyler Durden
ZeroHedge.com
04/21/2015

In what seems like a coincidental retaliation for Greece’s pivot to Russia (and following Greece’s initiation of capital controls), the supposedly independent European Central Bank has decided suddenly that – after dishing out €74 billion of emergency liquidity to the Greek National Bank to fund its banks – as The NY Times reports, the value of the collateral that Greek banks post at their own central bank to secure these loans be reduced by as much as 50%, and the haircut scould increase if negotiations with Europe remain at an impasse. As we detailed earlier, this is about as worst-case-scenario for Greece as is ‘diplomatically’ possible currently, and highlights an increasingly hard line by The ECB toward The Greeks as the move will leave banks hard-pressed to survive.

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