Concern about Europe's squabbling over a palatable plan to save Cyprus from financial collapse weighed on Wall Street, even as the latest US housing data showed further signs of a sustainable recovery in the industry.
Cyprus President Nicos Anastasiades said that lawmakers are likely to reject a plan to tax bank deposits, even as it was amended to protect those with the least savings. The timing of the vote is uncertain.
The European Union and International Monetary Fund want Cyprus to fund 5.8 billion euros of a 10 billion euro bailout through a levy on bank deposits, an unprecedented demand that has prompted both riots in the nation and concern well beyond its borders.
EU officials including Dutch Finance Minister Jeroen Dijsselbloem, who chairs the group of euro zone finance ministers, and Deutsche Bank Chief Executive Anshu Jain have said that bank deposits in other euro zone member nations are safe from similar bailout conditions as currently demanded from those in Cyprus.