The FT reports that the ECB could kill emergency lending programs to Greek banks
More than one-tenth of Greek bank deposits have fled and ECB officials will meet Wednesday on whether to lift the emergency lending program. Cancelling the loans, known officially as Emergency Liquidity Assistance, is a nuclear option that would in effect force Athens to implement capital controls or quit the eurosystem.
Sounds like they're holding this as a trump card if Greece fights too hard at the bargaining table in bailout extension talks.
"The emergency loans are only granted to banks judged as solvent. The discussion on Wednesday is set to focus on the terms under which Greek lenders can still be considered solvent, with the fate of the banking system viewed as inextricably linked to the solvency of Greece."
