Breaking News

How Merrill Lynch ‘plans to send trucks full of cash into Greece’ as U.S. firms plan for country’s exit from the euro

0 0

  • Greece is  on brink of financial collapse and is expected to leave Euro
  • American  banks with clients in the country are now preparing contingency plans for how to  get money to employees if the country’s banks close

By Daily Mail Reporter

PUBLISHED:10:53 EST, 3  September 2012| UPDATED:11:30 EST, 3 September 2012

Bank of America Merrill Lynch is poised to  send trucks filled with cash into Greece as part of plans being adopted by U.S.  firms in the event of the country crashing out of the euro.

With Greece teetering on the brink of a  chaotic exit from the Eurozone, American banks and consulting firms have drawn  up contingency plans for the financial turbulence that would follow.

Following fifteen months of increasingly  dramatic negotiations, the debt crisis has reached the point where financial  analysts aren’t talking about if but when it will happen.

Ongoing issue: The financial crisis in Greece has often turned into protests, like the one these police are preparing for here in 2010, but now it is more of a concern of how to facilitate a transition out of the Euro 

Ongoing issue: The financial crisis in Greece has often  turned into protests, like the one these police are preparing for here in 2010,  but now it is more of a concern of how to facilitate a transition out of the  Euro

 

Going back: Long considered the last resort, financial analysts feel the country will revert back to its former currency called the Drahma, and now it is only a matter of when the switch will happen 

Going back: Long considered the last resort, financial  analysts feel the country will revert back to its former currency called the  Drahma, and now it is only a matter of when the switch will happen

The New York  Times spoke to experts who expect  that such a grave decision would be announced after the close of business on a  Friday after markets are finished for the weekend.

Then, if the country were to revert from the  Euro, the currency which it has used since 2001, then it will require an extra  bank holiday on Monday to organize and distribute the new currency.

 

They will presumably go back to their former  currency, called drachma.

In such a situation, it would be nearly  impossible for banks to rapidly hand out cash to consumers, leading the way for  more confusion.

‘Companies are asking some very granular  questions, like “If a news release comes out on a Friday night announcing that  Greece has pulled out of the euro, what do we do?”

‘In some cases, companies have contingency  plans in place, such as having someone take a train to Athens with 50,000 euros  to pay employees,’ Peter Frank of PricewaterhouseCoopers told The Times.

Old is new again: The country is expected to switch from the Euro (right) which they have used since 2001 to their former currency called Drahma (left) 

Old is new again: The country is expected to switch from  the Euro (right) which they have used since 2001 to their former currency called  Drahma (left)

 

Contingency plans: Banks are discussing driving trucks full of cash into Greece to help facilitate the transition if it were to happen, though the exact model of car is unknown. Protestors shown here in 2008 attacked this bank transfer armored truck 

Contingency plans: Banks are discussing driving trucks  full of cash into Greece to help facilitate the transition if it were to happen,  though the exact model of car is unknown. Protestors shown here in 2008 attacked  this bank transfer armored truck

The fact that such drastic action is on the  brink of becoming the solution was not expected by many inside Greece, though  foreign advisors have been continually critical of the common Euro currency for  the entirety of the crisis.

‘When we started giving advice, they came for  the free sandwiches and chocolate cookies,’ Bank of America Merrill Lynch head  of Europe Carole Berndt said jokingly the paper.

‘Now that has changed, and contingency  planning is focused on three primary scenarios — a single-country exit, a  multi-country exit and a breakup of the euro zone in its entirety.’

If Greece were to leave the Eurozone, Spain  and Italy would be the next focus of the financial world as their own debt  troubles could be alleviated to a degree by also reverting to their own  currencies

Read more: http://www.dailymail.co.uk/news/article-2197666/Merrill-Lynch-plans-send-trucks-cash-Greece-countrys-financial-crisis-reaches-worst-case-scenario.html#ixzz25QUewOrz

About Post Author

Ralph Turchiano

I have a strong affinity for the sciences which led me to create my sites. My compulsion for the past decade has been reviewing literally every peer-reviewed research article. Which can easily be validated by following my posts. To me, science is where the real news is, as it will mold our destiny beyond that of politics or economics. 😉 Please feel free to e-mail: 161803p314159@gmail.com
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleppy
Sleppy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
0%
4 Star
0%
3 Star
0%
2 Star
0%
1 Star
0%
%d bloggers like this: