This paper aims to shed light on the venture of the recapitalization of the Greek “systemic” banks in the time period following the major global financial crisis in 2008. The aim is both to present an objective representation of the situation that occurred in the Greek banking system, as a result of the bad fiscal situation, and also to criticize the measures taken in response. More specifically, an empirical analysis is implemented to examine the application of Private Sector Involvement (PSI) and its impact on Greek banks. The results show the negative effect that this measure had changing the whole banking system and endangering its private nature. It is proved that Greek banks were well shielded against recession and that if PSI hadn’t imposed on them, the funds raised solely by individuals, during the recapitalization process, were enough to maintain the required capital adequacy set by the authorities. Conclusively, the present study highlights the recapitalization procedure of the Greek Banking System, employs a critical evaluation of the measures taken and discusses what the future holds for the newly established banking map.