The European Central Bank Has Stopped Providing Cash To Some Greek Banks

The ECB confirmed it had cut off some Greek banks as they are severely undercapitalized. The news sent the euro lower against the U.S. dollar, fanning fears the country may have to leave the eurozone. Hannelore Foerster/Bloomberg

Exclusive: ECB Stops Operations With Some Greek Banks -- Reuters

(Reuters) - The European Central Bank has stopped providing liquidity to some Greek banks as they have not been successfully recapitalized, the ECB said on Wednesday, confirming news earlier reported exclusively by Reuters.

The news sent the euro lower against the dollar, fanning concerns among investors and in Greece that the country may have to leave the euro zone.

The development highlights the weak state of the banking sector in Greece, where Greeks are pulling euros out of the banks in fear that their country may exit the European single currency despite the declared determination of EU powers Germany and France to keep Athens in the monetary union.

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Update: ECB Stops Loans to Some Greek Banks as Draghi Talks Exit -- Bloomberg

My Comment: The Canadian finance minister sums it up perfectly.