EU Central Bank will bail out Greek banks directly

The EU Central Bank intends to bail out Greek banks directly, bypassing the Greek government.

Greece has pretty much reached the end of the road as far as bailouts are concerned and will almost certainly drop out of the €uro. As the threats and scaremongering escalate, Greeks are withdrawing more money out of their banks and causing even more damage to the decimated Greek economy.

Directly bailing out Greek banks allows the ECB to give Greece the money it needs to prevent their banks from losing a terminal amount of capital without being seen to be caving in in the face of the Greek government's obstinance.

If the Greek government can't convince enough people that their money is safe in Greek banks then they'll have to impose capital controls to prevent the transfer of cash from banks to individuals. This is what happened in Cyprus after the Cypriot government was forced to go cap in hand to the EU when they were unable to secure Russian finance because the EU wouldn't allow Cyprus to give Russia priority creditor status.