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Greek banks will not open Monday

ATHENS, Greece –  Greece's five-year financial crisis took its most dramatic turn to date Sunday, with the cabinet deciding, after an 8-hour session, that Greek banks would remain shut for six working days and restrictions would be imposed on cash withdrawals.
The Athens Stock Exchange would also not open on Monday, financial sector officials confirmed.
A decree published in the official Government Gazette stipulates banks will not open Monday morning and will remain closed through Monday, July 6. The finance minister could decide to short or extend that period.
Withdrawals from ATM with credit or cash cards will be capped at 60 euros ($66) daily. The decree said ATMs would be working at the latest 12 hours from its publication, meaning cash machines would open by early afternoon, at the latest.
Web banking transactions will be mostly free, allowing people to pay their bills online. However, they cannot move money to accounts abroad.
Credit and bank cards issued abroad can be used at the ATMs with no restrictions. This will benefit foreign visitors to Greece and the tourist industry. Many anxious tourists had joined locals at ATM lines on Sunday, thinking the restrictions would apply to them, as well.
For emergency needs, such as importing medicines or sending remittances abroad, the Greek Treasury was creating a Banking Transactions Approval Committee to examine requests on a case-by-case basis.
The decision to impose capital controls came on the recommendation of the Bank of Greece, Prime Minister Alexis Tsipras said during a televised address to the nation. Tsipras blamed the Eurogroup, the gathering of the eurozone's finance ministers, and its decision to reject a request for the bailout program, which expires June 30, to be extended by a few days to allow for the referendum, for the imposition of controls.
Tsipras said he had renewed the extension request.
Tsipras also blamed the European Central Bank's Sunday decision not to increase the amount of emergency liquidity the lenders can access from the central bank — meaning they have no way to replenish fast diminishing deposits.
"It is now more than clear that this decision has no other aim than to blackmail the will of the Greek people and prevent the smooth democratic process of the referendum," Tsipras said.
"They will not succeed. These moves will have the exact opposite effect. They will make the Greek people more determined in their choice to reject the unacceptable ... proposals and ultimatums of the creditors," he said.
The developments have thrown into question Greece's financial future and continued membership in the 19-nation shared euro currency — and even the European Union.
For the past two days, Greeks have been rushing to ATMs to withdraw money across the country following Tsipras' sudden weekend decision to call a referendum on creditor proposals for Greek reforms in return for vital bailout funds.
The government is urging Greeks to vote against the proposals, arguing that they are humiliating and that they would prolong the country's financial woes.
Spooked by rumors concerning impending fuel shortages, drivers flooded gas stations across Greece, prompting the country's largest refiner, Hellenic Petroleum, to issue a statement reassuring there are sufficient reserves of gasoline to last several months. The rush to gas stations may have been prompted less by worries about shortages than the impending withdrawal limits and rumors, later proven untrue, that the use of credit or debit cards will not be permitted.
The referendum decision, which was ratified by parliament after a marathon 13-hour session that ended in the early hours of Sunday, shocked and angered Greece's European partners. The country's negotiations with its European creditors have been suspended, with both sides accusing each other of being responsible.
The referendum is set for next Sunday. But Greece's current bailout expires on Tuesday, and the 7.2 billion euros ($8 billion) remaining in it will no longer be available to Greece after that date.
Without those funds, Greece is unlikely to be able to pay a 1.6 billion-euro ($1.79 billion) International Monetary Fund debt repayment due the same day.
"We don't know — none of us — the consequences of an exit from the eurozone, either on the political or economic front. We must do everything so that Greece stays in the eurozone," French Prime Minister Manuel Valls told France's i-Tele TV earlier Sunday.
"But doing everything, that means respecting Greece and democracy, but it's also about respecting European rules. So Greece needs to come back to the negotiating table," he said.
On the streets of Athens, reactions to Tsipras' referendum call were mixed.
"I have no idea what we are voting for. Yes or no, we don't know what to say," 67-year-old Triandafila Bourbourda said as she walked in the capital's main Syntagma Square. "I think we shouldn't have gone so far to get into this mess."
But Voula Lambrou, attending a Sunday morning church service, said she believed Greece would be better off outside the 28-nation EU.
"If we exit the European Union, I believe things will be very good for Greece," she said. "It will be tough for some time, but we will be able to find strength in order to carry on ahead. We don't need the Europeans."
Two opinion polls published Sunday indicated that more Greeks want to stay in the eurozone and make a deal with creditors than want a rupture with the country's European partners. Both polls were conducted before Tsipras' referendum call, but they provide an indication of public sentiment.
In the poll by Alco for the Proto Thema paper, 57 percent said they believed Greece should make a deal while 29 percent wanted a rupture of ties. A Kapa Research poll for To Vima newspaper found that 47.2 percent would vote in favor of a new, painful agreement with Greece's creditors, compared to 33 percent who would vote no and 18.4 percent undecided.
Both polls were conducted from June 24-26 and had a margin of error of about 3.1 percent.
On the banking front, the ECB has said it could reconsider its decision on credit levels.
"We continue to work closely with the Bank of Greece and we strongly endorse the commitment of member states in pledging to take action to address the fragilities of euro-area economies," ECB chief Mario Draghi said.
Yannis Stournaras, governor of the Bank of Greece, said the bank would "take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances."

Puerto Rico governor warns public debt not payable

Puerto Rico's governor believes the U.S. territory will not be able to pay back its $72 billion public debt, a spokesman told the Associated Press late Sunday.
Gov. Alejandro Garcia Padilla's spokesman, Jesus Manuel Ortiz, confirmed that the island's government is seeking to defer payments while negotiating with creditors.
He confirmed comments by Garcia that appeared in a report in The New York Times published late Sunday, less than a day before Garcia is scheduled to deliver a public address amid debate on a $9.8 billion budget that calls for $674 million in cuts and sets aside $1.5 billion to help pay off the debt. The budget has to be approved by Tuesday.
"There is no other option. I would love to have an easier option. This is not politics, this is math," Garcia is quoted as saying in the Times.
The island's debt figure is four times that of Detroit, according to the Washington Post.
Puerto Rico's bonds were popular with U.S. mutual funds because they were tax-free, but hedge funds and distressed-debt buyers have been stepping in to buy up the debt as the island's economy worsened and its credit rating dropped.
Puerto Rico's constitution dictates that the debt has to be paid before any other financial obligation is met. If Garcia seeks to not pay the debt at all, it will require a referendum and a vote on a constitutional amendment, said Rep. Jenniffer Gonzalez, spokeswoman for the main opposition party.
She said in a phone interview that she was taken aback by Garcia's comments, which came out just hours before he was scheduled to meet with legislators.
"I think it's irresponsible," Gonzalez said. "He met privately with The New York Times last week, but he hasn't met with the leaders of this island."
Puerto Rico's central government could run out of cash as soon as July, possibly leading to a government shutdown, according to the Wall Street Journal.
“This is going to be painful for the next two to three years,” said Rep. Pedro Pierluisi, D-Puerto Rico, told the paper. Pierluisi, the Resident Commissioner of Puerto Rico, is the island's non-voting representative to the U.S. House.
Puerto Rico's situation has drawn comparisons to Greece, where the government decreed this weekend that banks would be shuttered for six business days and restrictions imposed on cash withdrawals. The country's five-year financial crisis has sparked questions about its continued membership in the 19-nation shared euro currency and the European Union.
Puerto Rico's governor recently confirmed that he had considered having his government seek permission from the U.S. Congress to declare bankruptcy amid a nearly decade-long economic slump. His administration is currently pushing for the right for Puerto Rico's public agencies to file for bankruptcy under Chapter 9. Neither the agencies nor the island's government can file for bankruptcy under current U.S. rules.
Puerto Rico's public agencies owe a large portion of the debt, with the power company alone owing some $9 billion. The company is facing a restructuring as the government continues to negotiate with creditors as the deadline for a roughly $400 million payment nears.
Garcia has taken several measures to help generate more government revenue, including signing legislation raising the sales tax to 11.5 percent and creating a 4 percent tax on professional services. The sales tax increase goes into effect Wednesday and the new services tax on Oct. 1, to be followed by a transition to a value-added tax by April 1.

Calls grow for probe of Clinton's private server

Calls for Hillary Clinton to allow a third party to examine her private server grew louder Friday following revelations that she had withheld more than a dozen Benghazi-related emails from the State Department.
"Secretary Clinton's failure to turn over all Benghazi and Libya documents is the reason why we have been calling for an independent, third party review of her server," Rep. Lynn Westmoreland, R-Ga., a member of the House Select Committee on Benghazi, told the Washington Examiner.
"Her unusual email arrangement with herself allowed for Secretary Clinton to pick and choose which emails she deemed work related, and now we know that she failed to be honest and forthcoming with those emails to both the Select Committee and the State Department that were subpoenaed," Westmoreland added.
A State Department spokesman said Friday the agency had no plans to launch a probe of Clinton's private server, on which she hosted both her personal and work-related emails.

Police officer, law enforcement praised as escaped killer David Sweat is captured in upstate NY

A New York State police officer was being hailed as a hero Sunday for spotting and shooting escaped prisoner David Sweat, bringing to an end a marathon 22-day manhunt for the cop killer and a fellow inmate.
Sweat, 35, had been on the run since he and Richard Matt broke out of the Clinton Correctional Facility in Dannemora, N.Y., on June 6. The manhunt for the two killers involved 1,200 law enforcement personnel.
Sweat was taken into custody and is in stable condition at Albany Medical Center, authorities said Sunday. Matt was gunned down by police on Friday.
“This was an unprecedented coming together of law enforcement on every level,” New York Gov. Andrew Cuomo told reporters Sunday afternoon.
New York State Police Supt. Joseph D’Amico said Sgt. Jay Cook, a 21-year veteran of the force, first spotted Sweat jogging down a road in the town of Constable Sunday afternoon, about 2 miles from the Canadian border.
Cook, a local troop B member who was on patrol in the area alone, approached Sweat and recognized the convict from his description, Cuomo said.

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• Gov. Cuomo: 'The nightmare is finally over'

Sweat then ran away on foot while Cook gave chase. Fearing Sweat could make it to the tree line and disappear into the forest, Cook fired two shots and hit Sweat in the torso, D’Amico said.
Police then took Sweat into custody.
“It was a very courageous act,” Cuomo said at the press conference, which was filled with cheers from the audience.
According to U.S. Sen. Charles Schumer, D-N.Y., federal law enforcement said Sweat was coughing up blood as he was taken to a hospital. Sweat reportedly underwent surgery and was transferred to the state's capital to receive further medical attention.
Albany Medical Center medical director Dr. Dennis McKenna told reporters at a press conference that Sweat was in critical condition as of late Sunday.
“The nightmare is finally over,” Cuomo said. “It took 22 days but we can now confirm…Mr. Matt is deceased and Mr. Sweat is in custody is in stable condition.”
State police had flooded the area Saturday night after developing evidence that Sweat was there.
"I can only assume he was going for the border," D'Amico said.
Sweat, who was unarmed, has not been formally interviewed by investigators as of late Sunday, but any information he provides could be critical to the investigation, Clinton County District Attorney Andrew Wylie said.
An Amish dairy farmer said Sweat was captured on her property near a tree line, just feet from an electrified fence where the cows graze.
Verba Bontrager, 38, who has run her family's farm in Constable for the last nine years, said she was chatting with visitors inside when she heard two gunshots. Her children and a family friend went outside, saw a caravan of police cars and ambulances, and learned from a trooper that Sweat had been captured.
She said her children had been home alone earlier, and even though she knew police were looking for Sweat, she never thought to be worried. Now, she said, they're a little shaken.
"I think it's kind of hard for them to go back to bed and sleep because of everything that went on," Bontrager said. "We're all kind of scared, I guess."
Sweat will be charged with escape, burglary and other charges, Wylie said. The inmates are suspected of breaking into some of the region's many cabins during their time on the lam. Wylie said prosecutors would wait for Sweat to recover before charging him.

"I'm just glad it's over."
- Constable resident Trevor Buchanan

The search for the escaped killers was initially concentrated around the prison and a rural community where search dogs had caught the scent of both men. The search had since been expanded to neighboring counties, and, while authorities said there was no evidence the men had gotten out of the general area, they conceded they could have been almost anywhere.
"It's a little unnerving, him being so close," said Constable resident Trevor Buchanan. "I'm just glad it's over."
 D'Amico said the men may have used black pepper to mask their trail; he said Sweat's DNA was recovered from pepper shakers found at one camp where the fugitives may have spent time.
"We did have difficulty tracking so, you know, it was fairly effective in that respect," D'Amico said.
On Friday, Matt, 49, was killed by a border patrol agent near the town of Malone.
An autopsy showed Matt had been shot three times in the head, state police said Sunday.  Officials say Matt also had bug bites on his legs, blisters and minor abrasions that would be expected for someone who had been living in the woods.
Matt smelled of alcohol after a border patrol agent killed him Friday, the Buffalo News reported. He was also sick, possibly after consuming spoiled food or bad water, a law enforcement source told the paper.
The indication Matt was ill came after searchers found soiled underwear at a burglarized cabin Wednesday, the Buffalo News reported.
A DNA test showed the underwear belonged to Matt, the paper said.
The paper also reported that based on his clothes and appearance, it looked like Matt had not bathed in a long time and had spent a great deal of time on the lam in the outdoors.
Authorities said Matt was shot by a border patrol agent when he failed to comply with orders to show his hands. A 20-gauge shotgun was found on Matt, though he didn’t fire it at officers, authorities said.
"They verbally challenged him, told him to put up his hands. And at that time, he was shot when he didn't comply," D'Amico said at a news conference late Friday.
The breakthrough came Friday shortly before 2 p.m., when a person towing a camper head a loud sound and thought a tire had blown out. Finding the tire intact, the driver drove another eight miles before discovering a bullet hole.
Authorities converged on the location where the sound was heard and discovered the smell of gunfire inside a cabin. D’Amico said there was also evidence someone had fled out the back door.
A noise -- perhaps a cough -- ultimately did Matt in. A border patrol team discovered Matt, who was shot after failing to heed a command to raise his hands.
"As we were doing the ground search in the area, there was movement detected by officers on the ground, what they believed to be coughs. So they knew that they were dealing with humans as opposed to wildlife," he said.
"We have a lot of people in the area. We have canines and we have a decent perimeter set up and we're searching for Sweat at this time," he said.
Mitch Johnson said one of his best friends checked on his hunting cabin in Malone Friday afternoon and called police after noticing the scent of grape flavored gin as soon as he stepped into his cabin and spotting the bottle that had gone untouched for years resting on a kitchen table.
Johnson said his friend, correction officer Bob Willett, told him he summoned police about an hour before Matt was fatally shot and then heard a flurry of gun blasts.
Sweat was serving a sentence of life without parole in the killing of a sheriff's deputy in Broome County in 2002. Matt was serving 25 years to life for the killing and dismembering of his former boss.
Matt and Sweat used power tools to saw through a steel cell wall and several steel steam pipes, bashed a hole through a 2-foot-thick brick wall, squirmed through pipes and emerged from a manhole outside the Clinton Correctional Facility.
A civilian worker at the prison, Joyce Mitchell, has been charged with helping the killers flee by giving them hacksaw blades, chisels and other tools. She has pleaded not guilty.
On June 24, authorities charged Clinton correction officer Gene Palmer with promoting prison contraband, tampering with physical evidence and official misconduct. Officials said he gave the two prisoners the frozen hamburger meat Joyce Mitchell had used to hide the tools she smuggled to Sweat and Matt. Palmer's attorney said he had no knowledge that the meat contained hacksaw blades, a bit and a screwdriver.