Banking sources in Greece are reporting that any plan to recapitalize the teetering banking system would include a "bail in" of up to 30% of deposits over 8,000 euros. A similar plan was initiated in Cyprus in 2013 when the banks were in danger of collapsing. But the bail in there affected deposits of over 100,000 euros. The Greek plan would affect far smaller depositors. Financial Times: It would be implemented as part of a recapitalisation of Greek banks that would be agreed with the country’s creditors — the European Commission, International Monetary Fund and European Central Bank. “It [the haircut] would take place in the context of an overall restructuring of the bank sector once Greece is back in a bailout programme,” said one person following the issue. “This is not something that is going to happen immediately.” Eurozone officials said no decision had been taken to wind up any Greek banks or initiate a bail-in of...(Read Full Post)