Bank panic in Greece: What happens if Greeks quit the euro?

As Greece veers toward a eurozone exit, depositors are draining their bank accounts, and European leaders are beginning to plan for a post-Greece future

A busy ATM in Athens: Fear over Greece's precarious position in the Euro Zone prompted Greeks to withdraw 800 million euros in a one day this week.
(Image credit: REUTERS/Yannis Behrakis)

Greece's inconclusive elections in early May, which produced a splintered field that could not cobble together a government, have thrust the debt-ravaged country into deeper chaos. New elections are expected on June 17, but few predict they'll yield a stable coalition willing to carry out the EU-demanded austerity measures needed to keep Greece in the euro currency bloc. Since the election, panicked depositors have withdrawn 3 billion euros ($3.8 billion) from their checking accounts, and as much as 800 million euros on a single day earlier this week. Meanwhile, the European Central Bank (ECB) says it will no longer lend to certain Greek banks, a signal that the ECB is limiting its exposure to Greek risk. As Greece approaches the precipice of a euro exit, many around the world are wondering what would happen if Greece actually takes the plunge. Here, six predictions on how a euro exit would play out:

1. Greece would revert to its old currency

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