Greek Bank Losses Show Predicament Amid Record Outflows

``"The Greek government and Greek banks are trapped in a death embrace," Benedict James, banking partner at global law firm Linklaters, said in an e-mail. The sovereign only appears "solvent because the Greek banks agree to roll over Greek government bonds as they mature, and the Greek banks only do that because they can use the bonds as collateral with the ECB under a facility which only works as long as the Greek government looks solvent."''