Yes they could have let Greece fail. Hey why not kick that first domino. Cypress banks have lost $3.5 billion on Greek bonds.
Everything You Need to Know About the Cyprus Bank Disaster - Matthew O'Brien - The Atlantic
Wake up. Govt isn't any more your friend then the banks govt controls.
"What difference" "does it make?"
It appears people power scares government theives - the Cyprian government has rejected the EU condition requiring the theft from bank accounts.
Cyprus Rejects Deposit Levy in Blow to European Bailout Plan - Bloomberg