greece-5Bank stocks have fallen by a total of 40 per cent since the weekend election, which saw leftist leader Alexis Tsipras become Prime Minister with his anti-austerity party. Tsipras immediately formed a coalition with the right-wing Independent Greeks. Fears that Greek banks, facing increased deposit outflows, could be shut out of European Central Bank liquidity assistance if their assets were no longer accepted as collateral have led to a rout as investors dump financial stocks. Tsipras’ new government has defied expectations it would be wary of upsetting European and International Monetary Fund creditors after the election. It immediately halted planned privatisations of Greece’s biggest port and biggest utility ahead of talks on renegotiating its bailout conditions.  The moves, made without consulting lenders, highlighted the risk of a breakdown in the talks, with a succession of German politicians warning that bailout terms must be respected. “The floor is zero if things go badly in the negotiations between the new government and the rest of the euro zone,” Simon Maughan, head of research at OTAS Technologies, told Reuters. More