As far as I can tell the Eurogroup teleconference on Cyprus is continuing but initial reports aren’t good and stocks are at the lowest since early in the day.
Reports that Cyprus’ government is saying it doesn’t have the votes to pass the bank levy have been trigger. The risk is that the bailout is left in limbo. Cyprus can ‘pull a Greece’ and threaten to leave the Eurozone if the bailout terms aren’t eased.
That kind of action might leave policymakers in a Mexican standoff but markets wouldn’t wait to see who lived and died — the first instinct would be to shoot down the euro.
Mexican standoff