The vast majority of Greek banks are supposed to be private however in reality they are controlled by the greek governments. The control takes place in two ways:
1. The government appoints the bank's top managers. Such is the case of Greece's National Bank (NBG).
2. Via political extortion and favors. This is the practice mafias use and no "private" bank in Greece is immune to it.
This control has the following grave consequences for the banks' stock holders (the "bankers"!):
- All of the political parties in Greece receive loans from the banks and never pay them back. New Democracy (ND) and PASOK the two parties that governed Greece since 1974 are the champions of this bank robbery, however smaller parties such as the far leftist SYRIZA, which now is the second largest party behind New Democracy, are not far behind.
During the voting of the new Law for investments in Greece, at the parliament last Thursday, at the end of the meeting a parliamentary amendment was introduced by the New Democracy party, which exempts banks administrations for the never-repaid loans to ND and PASOK. In that way, there will never be a criminal investigation for the loans given by banks to PASOK and ND, and no responsibility will be attributed to the bank administrations. These loans exceed 200 million euros!
- Greek governments for decades extorted "private" banks to give out bad loans to friendly companies and persons from the private sector. Of course this kind of "private sector" is really public sector however the money it uses to survive comes from the bank shareholders' pockets instead of taxes. Of course in case the bankrupt banks become property of the state, the money lost in bad loans towards the friends of politicians and governments will be paid by the taxpayers. If by some miracle the "private" Greek banks remain under the "control" of stockholders the bad loans money will be paid by the suckers stockholders.
- The final destructive blow, one of apocalyptic proportions, to the Greek private banks that led them to bankruptcy came from the public sector. Because of the government control the Greek banks were obliged to buy Greek government toxic bonds. Via the PSI (in 2011) which robbed private govt bond investors of 120 billions euros the greek public sector managed to sustain its huge salaries and unsustainable expenses for 2-3 more years.
For more details on that see http://theteapotgr.blogspot.gr/2013/03/analysis-of-greek-public-sector.html
1. The government appoints the bank's top managers. Such is the case of Greece's National Bank (NBG).
2. Via political extortion and favors. This is the practice mafias use and no "private" bank in Greece is immune to it.
This control has the following grave consequences for the banks' stock holders (the "bankers"!):
- All of the political parties in Greece receive loans from the banks and never pay them back. New Democracy (ND) and PASOK the two parties that governed Greece since 1974 are the champions of this bank robbery, however smaller parties such as the far leftist SYRIZA, which now is the second largest party behind New Democracy, are not far behind.
During the voting of the new Law for investments in Greece, at the parliament last Thursday, at the end of the meeting a parliamentary amendment was introduced by the New Democracy party, which exempts banks administrations for the never-repaid loans to ND and PASOK. In that way, there will never be a criminal investigation for the loans given by banks to PASOK and ND, and no responsibility will be attributed to the bank administrations. These loans exceed 200 million euros!
- Greek governments for decades extorted "private" banks to give out bad loans to friendly companies and persons from the private sector. Of course this kind of "private sector" is really public sector however the money it uses to survive comes from the bank shareholders' pockets instead of taxes. Of course in case the bankrupt banks become property of the state, the money lost in bad loans towards the friends of politicians and governments will be paid by the taxpayers. If by some miracle the "private" Greek banks remain under the "control" of stockholders the bad loans money will be paid by the suckers stockholders.
- The final destructive blow, one of apocalyptic proportions, to the Greek private banks that led them to bankruptcy came from the public sector. Because of the government control the Greek banks were obliged to buy Greek government toxic bonds. Via the PSI (in 2011) which robbed private govt bond investors of 120 billions euros the greek public sector managed to sustain its huge salaries and unsustainable expenses for 2-3 more years.
For more details on that see http://theteapotgr.blogspot.gr/2013/03/analysis-of-greek-public-sector.html
Greek banks lost around 40 billion euros because of public sector debt that was never paid back! PSI was the biggest robbery of all times and in Greece it was presented as a national achievement! It was presented as if the greek public sector IS the country. And because it managed to continue its unsustainable pays to civil servants for a few more years by robbing millions of private "low risk/low reward" government bond investors, THE COUNTRY survived and won! Millions of companies, pension funds, and physical persons were financially destroyed so that the government could continue to spend as usual! The blow to the banks was decisive. All greek banks (but one) have negative capitals and are open to the public only because of the european loans deposited to the Hellenic Financial Stability Fund.
The greek banks are now practically owned by the HFSF and they are looking for suckers to invest money buying HFSF's stocks in order to cover the robbery of the public sector via annual share capital increases (10% for 2013).
The graphs below show the tragedy of being a Greek "banker" (stock price in euros). These people lost all of their capital within 3 years:
National bank of Greece (NBG)
EUROBANK EFG
PIRAEUS BANK
ALPHA BANK
Several Greek banks filed for bankruptcy (Agrotiki, TT, Emporiki), were split in "good" and "bad" banks and were sold to the remaining surviving (for the time being) banks. Of course their stockholders lost ALL their money since the old stocks were part of the "bad" banks.
But if complete financial annihilation by the socialist greek governments was not enough for the greek ""bankers" (hundreds of thousands of people) they have to endure the hatred and populist slander of greek leftists and socialists (90% of the population). The greek "bankers" were the victims of a slaughter so that this and that and that can be possible.
The international community HAS to take action to save the country from the socialist regime that governs since 1974 and make Greece a western, European state!
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