While it may be too early to tell, initial reports indicate that a bank run could be taking place in Greece.
“Stocks faded in the final hour of trading Tuesday to finish lower after a transcript from the Greek meeting showed deposits leaving the banking system, fueling speculation that the nation might leave the euro zone,” CNBC reports.
If the transcripts are accurate, depositors withdrew approximately €700 million euros ($898 million) from local banks, according to President Karolos Papoulias.
However, CNBC notes, “the exact timing of the transfer was unclear.”
The transcripts also show that Papoulias cited a conversation he had with Greek Central Bank Governor George Provopoulos wherein it was agreed "that the strength of banks is very weak right now," the Wall Street Journal reports.
"I think people need to prepare for the eventual removal of Greece from the EU and investors are getting ahead of that before they're forced to," said Matthew McCormick, vice president and portfolio manager at Bahl & Gaynor Investment Counsel on CNBC's "Closing Bell." "It's a political market and an event-driven market."
Investors have been nervous all day since news broke that Greece has failed yet again to agree on a coalition government.
Update: It has been confirmed that President Karolos Papoulias told party leaders that about $898 million has been removed from the banking system since the May 6 election.
"The situation in the banks is very difficult," Papoulias said according to a transcript of the meeting's minutes released by his office. "Mr. Provopoulos told me that of course there is no panic, but there is great fear which could turn into panic."
Socialist party leader and former finance minister Evangelos Venizelos on Tuesday said the country is "unfortunately" headed for another round of elections, "because certain people coldly put their short-term party interests above the national interest."
The Associated Press contributed to this story. Updates will be added as they become available.