This is currently the FT’s most-read article, so it’s a must-read. Check it out!
The story has triggered a very strong denial from Greece’s Finance Minister, therefore I believe that the FT’s source is probably highly reliable.
A deep haircut on Greek bank deposits, Cyprus style, will be very appealing to creditors, especially in Germany. As highlighted by the IMF, an effective solution to the Greek debt crisis will require massive write-offs, so a haircut on deposits would share the pain.
Of course, the haircut will be deeply unpopular in Greece but it will have been triggered as a last resort by failure to offer genuine reforms in Greece.