Cyprus' financial crisis hits Greek stocks, banks suffer heaviest losses

ATHENS, Greece – Banks stocks were sharply lower on the Athens Stock Exchange, as trading resumed for the first time in Greece since the details of a bailout in Cyprus and a shock levy on bank deposits were announced.

Following broader losses in Europe, shares on the Greek bourse were down 2.1 percent early Tuesday, with banking stocks down as much as 5 percent.

Following a public holiday Monday, Greek branches of the Cypriot lenders the Bank of Cyprus, Laiki Bank and Hellenic remained closed Tuesday and Wednesday. Trading in the shares of Bank of Cyprus and Laiki was also suspended for two days on the Athens Stock Exchange.

Public activity at Greek banks appeared normal Tuesday, following repeated assurances by the government that all deposits were safe.