ECB Nerves Fray on Greece as Supervisors Irk Central Bankers
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Inside the five-month-old union between monetary policy and financial oversight at the European Central Bank, nerves are beginning to fray.
As officials under ECB President Mario Draghi seek to replace deposits fleeing Greek banks without blatantly financing the state, the efforts of the institution’s new Single Supervisory Mechanism to do its part are riling the old guard. Central bankers say they are concerned that overly-strict orders to lenders could worsen the Greek turmoil.