The il(legitimate) battle for ECB control will have its results soon.

If ECB has political influence, Greek will have not much to expect. It will become clear in three to six months as to how politically independent ECB really is.

Will The Eurozone Survive The Battle For Control Of The ECB?

Feb. 5, 2015 3:21 AM ET | by Shareholders Unite | includes: fxe

Summary

• The ECB was supposed to be completely independent from politics. While this was never realistic, the latest Greek debt episode is likely to produce some kind of culmination.
• This is because the ECBs control of funding of Greek banks is largely discretionary and the biggest weapon in bringing the Greek back into the troika fold.
• An intense battle for control of the ECB will ensue, will the Germans tolerate another loss? Will the eurozone survive these battlescars?

In the ongoing Greek debt saga, the ECB did announce something risky:

Greek sovereign bonds, T-bills and government-guaranteed debt will no longer be welcome at the ECB Tower as of 11 February. [FT Alphaville]

Greek banks, which have already suffered from a good deal of deposit flight, are threatened to be cut off from financing, or so the story goes. In an excellent post, Karl Whelan from Bull Marketclarifies this fog (we have to quote at length and advice everyone to read the whole article anyway):

The Bank of Greece publishes a monthly balance sheet for Greek banks. Click on the liabilities tab: As of December 2014, the Greek banks owed €56 billion to the Eurosystem, via the Bank of Greece. What assets did they use as collateral to secure these loans? Click on the assets tab: The Greek banks only owned €12 billion in Greek government securities at the end of December, so these could only be securing a relatively small amount of the borrowing from the Eurosystem. 

Ref 

Will The Eurozone Survive The Battle For Control Of The ECB?

Feb. 5, 2015 3:21 AM ET | by Shareholders Unite | includes: fxe

Summary

• The ECB was supposed to be completely independent from politics. While this was never realistic, the latest Greek debt episode is likely to produce some kind of culmination.
• This is because the ECBs control of funding of Greek banks is largely discretionary and the biggest weapon in bringing the Greek back into the troika fold.
• An intense battle for control of the ECB will ensue, will the Germans tolerate another loss? Will the eurozone survive these battlescars?

In the ongoing Greek debt saga, the ECB did announce something risky:

Greek sovereign bonds, T-bills and government-guaranteed debt will no longer be welcome at the ECB Tower as of 11 February. [FT Alphaville]

Greek banks, which have already suffered from a good deal of deposit flight, are threatened to be cut off from financing, or so the story goes. In an excellent post, Karl Whelan from Bull Marketclarifies this fog (we have to quote at length and advice everyone to read the whole article anyway):

The Bank of Greece publishes a monthly balance sheet for Greek banks. Click on the liabilities tab: As of December 2014, the Greek banks owed €56 billion to the Eurosystem, via the Bank of Greece. What assets did they use as collateral to secure these loans? Click on the assets tab: The Greek banks only owned €12 billion in Greek government securities at the end of December, so these could only be securing a relatively small amount of the borrowing from the Eurosystem. 

Ref. http://m.seekingalpha.com/article/2886436