ECB Primes European Tranquilizer as Greece Faces Bank Chaos

The European Central Bank claims it can calm any regional market turmoil that follows Greece’s referendum on Sunday. Saving the country’s banking system will be harder.

With two asset-buying programs, international swap lines, backstops for eastern Europe and cash tenders in place, the ECB has a wide range of tools at hand should bond yields surge or money markets freeze after the July 5 vote. That’s a possible outcome if voters reject the terms of a European Union-led bailout.