Euro Lessons Unlearned as Blunders Mar Cyprus Rescue

As Greece lurched toward its first bailout in early 2010, the largest bank in Cyprus was stocking up on Greek bonds.

That lethal misjudgment helped drive the government in Nicosia toward a rescue of its own, a 10 billion-euro ($13 billion) project involving measures so novel -- beyond an unprecedented raid on bank deposits that sparked a global uproar -- that policy makers initially kept them under wraps.