Dirty Games by Very Dirty Guys: The ECB “orchestrates” a bank run

The news posted by Reuters shocked! The usual suspects, the “anonymous officials with knowledge of the talks”, the black-tie toussie-moussies had reportedly told the international news agency that “the European Central Bank was not sure if Greek banks would open on Monday”.

“The European Central Bank told a meeting of euro zone finance ministers on Thursday that it was not sure if Greek banks, which have been suffering large daily deposit outflows, would be able to open on Monday, officials with knowledge of the talks said.

The officials said that during the closed-door meeting of the ministers on Greece, the chairman of the meeting Jeroen Dijsselbloem asked European Central Bank Executive Board member Benoit Coeure if Greek banks would be able to open tomorrow.

Coeure answered: “Tomorrow, yes. Monday, I don’t know.” (reuters)

The news spread like a wild fire and had journalists economist, analysts and all possible and impossible people on social media wondering whether the ECB was triggering a bank run in Greece. There were several requests for a confirmation. The mess became complete when the ECB unofficially dismissed the news, but the “two officials” confirmed it again to the Brussels correspondent on Financial Times.

#ECB is denying it warned Greek banks may not be able to open on Monday.

— Peter Spiegel (@SpiegelPeter) June 18, 2015

2 sr officials who participated in #eurogroup meeting have confirmed to me @Reuters report @ecb worried #Greece banks may not open Monday

— Peter Spiegel (@SpiegelPeter) June 18, 2015

Late in the evening “sources” from the Bank of Greece said that such a thing was never said by Benoit Coeure in the Eurogroup.”

The news came just after the Eurogroup had concluded on Thursday evening with Jeroen Dijsselbloem to have stated that capital outflows from Greece are worrying.

A few hours earlier the Greek Government had said the some people seeking to incite capital flight.

According to a non-paper issued by the Greek Prime Ministry, there is a plan for “unnecessary and artificial capital flight in order to cause unrest and economic destabilization,” and denounces unspecified “circles“ investing in the “fear of the people.”

“These tactics are butter on the bread of lenders who want to further blackmail the Greek government,” the non-paper read.

Greek banks have been bleeding since last December, according to information published in the Greek media, the cash withdrawals from the Greek banks reach 1 billion euro in Thursday.

Whether one agrees or disagrees with the Greek government claims, fact is that the these blackmail tactics to “use anonymous sources” in order to put pressure is not new. A nice example was Ireland.

According to former finance ministry head Kevin Cardiff, European officials used anonymous media briefings during bailout talks to undermine market confidence for Ireland.

Kevin Cardiff, ex-secretary general of Ireland’s Department of Finance, said Ireland was pushed into an international bailout as EU officials used backdoor media briefings to weaken the country’s standing.

He said Ireland came under enormous direct and indirect pressure to enter the €85bn (£61bn) bailout in 2010 set up by the IMF, European Commission and the ECB.

“At the moment we entered it, we were pushed – quite hard,” he told the Oireachtas Banking Inquiry,  a parliamentary inquiry investigating the causes of the Irish banking crisis.

“The push was in some ways direct and transparent…we knew who was doing it, we knew what they were saying.”

“In other cases the pressure came indirectly via some misinformation, anonymous media briefings, reportedly coming from official sources, which acted to accelerate market pressure and create enormous pressure on Ireland to enter an EU/IMF programme – quickly.” (The Telegraph June 18/2015 – thanks to @Dick_Darlington)

So the very dirty guys of the ECB do very dirty games in order to put pressure on the Greek government to sign a deal. They spread panic among the people, trigger a bank run, drain the banks, force the banks to ask for more Emergency Liquidity Assistance, keep the political pressure on the government, spread panic… a vicious cycle orchestrated by common criminals.

“And now we know who: the same ECB staffer who leaked the ECB’s “adjustment” to QE to a select group of hedge funds 10 hours before the news was public: Benoit Couere.” (zerohedge)

Guess who the other “official” is. A political cover  and lots of smoke in the eyes.

According to Proto Thema, the Bank of Greece allegedly submitted a request to the ECB for emergency ELA of 3 billion euro.

Both sides dismissed the news. The Greek government dismissed the news. But it is still in the news.

“The European Central Bank plans to hold an emergency session of its Governing Council on Friday to discuss the deteriorating liquidity situation of Greek banks, three people familiar with the matter said.

The call is scheduled for noon Frankfurt time on Friday, and the officials will consider a Bank of Greece request for an increase of more than 3 billion euros in Emergency Liquidity Assistance, one of the people said. All three asked not to be identified as the plans aren’t public.” (full story Bloomberg)

On the sideline of this unprecedented horrible story, be informed that there is a Eurozone Leaders Summit on the Greek problem scheduled for Monday, June 22nd 2015.

PS and if we stick to internet tonight we will keep reading “information” leaked to the press by a two or three ECB “people” and other “anonymous officials”. Odd that the ECBs have to appear only in groups. Obviously, the one represents the “impartial” bank and the other the “political” bank.