Deutsche Bank And Unicredit Cease Lending Against Greek Collateral

It's bad out there.

Google translation from Greece's Banking News (via ZeroHedge):

We came to where big banks like Deutsche Bank German and Italian Unicredit Group does not accept bonds as collateral Greek and refuse to lend in the repo market for Greek banks.

It should be noted that Greek banks say when we mean big banks too big. In the last 2 to 3 weeks 3 -4 Greek banks have been requested by Deutsche Bank and Unicredit Group to lend in the repo market, but refused on the grounds that they do not want to risk having to Greek bonds.

A Greek default on its debt obligation appears very likely. They are trapped because:

1. It does not appear the EU strong will back up Greek debt to the degree necessary (Though they may make public statements that they will)..

2. Greece is part of the EU, therefore, they have no independent currency that they can inflate to pay off their debt.

3, An IMF type austerity program would lead to civil unrest.