This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Schaeuble: Greek Austerity Is Working

By DEREK GATOPOULOS

ATHENS, Greece (AP) â¿¿ Greece's Piraeus Bank reached an agreement Tuesday to buy the Greek operations of three Cypriot banks for 524 million euros ($678 million), as stock markets in Athens were hit hard by the crisis in Cyprus.

Piraeus, which was selected last Friday to take over the Greek units of the Bank of Cyprus, Laiki and Hellenic, will see its share of loans in the Greek market rise from 19 percent to 27 percent. Its three new additions have combined assets of 16.4 billion euros ($21.2 billion) and take Piraeus' branches up to 1,600 with 24,000 employees.

Greece's conservative-led government pushed aggressively for the deal, as Cyprus remains in crisis over a bailout that will see large depositors on the island hit by a levy.

Piraeus Bank said Cypriot bank branches in Greece would re-open Wednesday, a day earlier than in Cyprus.

Despite the deal, the Athens Stock Exchange closed down 4.9 percent on Tuesday as traders returned to their desk following a long weekend. Many European markets, particularly those at the forefront of Europe's debt crisis, fell sharply Monday amid worries that big bank deposits may be raided in future financial bailouts. Greek banking stocks recovered from earlier losses but were still down 1.8 percent.

Markets have been rattled by reported remarks by Jeroen Dijsselbloem, who heads eurozone finance ministers' meetings, that the Cyprus bailout could serve as a template. He later modified the comments, describing the Cypriot agreement as "special."

In Athens, Finance Minister Yannis Stournaras reiterated that assurance: "The agreement reached by the Eurogroup regards Cyprus alone â¿¿ no other country."

Stournaras visited Greece's president, Karolos Papoulias, who was publicly critical of the Cypriot bailout deal, describing it as "unacceptable" and "selective."

Greece has been surviving on rescue loans from other eurozone countries and the International Monetary Fund for nearly three years, but spending cuts have battered the economy, pushing unemployment up to almost 27 percent.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,873.13 -38.98 -0.23%
S&P 500 1,966.58 -3.37 -0.17%
NASDAQ 4,455.6720 +12.9740 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs