Why ECB Political Elites Will Never Permit A Real Solution To The Greek Crisis

"The reason why European leaders will not accept a haircut on Greek debt is because the European Central Bank has exposures worth €100 billion ($144 billion) tot he country, according to Wolfgang Münchau.

Writing in the Financial Times, Münchau explains that beyond killing Greece's banking system, the overall impact on the ECB would be huge. It would also spread to around the European system, causing losses at banks throughout the eurozone
This is not a scenario the ECB is willing to accept, and, in many ways, it is their leadership calling the shots. That's why Greece is likely to just get more cash from the EU and IMF, or sell its debt to them. Soc Gen described this scenario as a postponement of the inevitable. It also relies on politicians being willing to dole out billions more in tax-payer money, something Finnish politicians continue to stand against..."

at http://www.businessinsider.com/why-the-ecb-will-never-accept-a-haircut-on-greek-debt-2011-5?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29#ixzz1LsYmAO4E