Varoufakis pushed plan to default after referendum

Varoufakis narrowly lost vote that would have seized Greek banks

The former Greek finance minister feared the ECB would close Greek banks to force a deal. After the referendum, he pushed a plan that he detailed in the New Statesman.

"He was prepared to do three things: issue euro-denominated IOUs; apply a "haircut" to the bonds Greek issued to the ECB in 2012, reducing Greece's debt; and seize control of the Bank of Greece from the ECB."

The plan was taken to the six-member inner circle of Syriza but he lost 4-2, with Tsipras opposing. He quit the government the next day.

"That very night the government decided that the will of the people, this resounding 'No', should not be what energised the energetic approach [his plan]. Instead it should lead to major concessions to the other side: the meeting of the council of political leaders, with our Prime Minister accepting the premise that whatever happens, whatever the other side does, we will never respond in any way that challenges them. And essentially that means folding. ... You cease to negotiate," Varoufakis said.