Reuters; Talks with Greek banks continuing on; hope for outline Wednesday

We hope so too…

The talk is that the Banks have agreed on a 40% haircut up from 21%. Germany wants 60%.

• The IIF says there are limits as to what can be considered voluntary under the Greek debt plan
• Any unilateral EU action would be tantamount to a default

That is important because if there is an official default, the ECB can no longer accept Greek debt as collateral, which would end the Greek banking system, as e know it.