According to Wall Street Journal, Moody’s Investors Service has cut the long-term debt ratings of Société Générale SA and Crédit Agricole SA on Wednesday and kept BNP Paribas SA under review for a downgrade.
European banks are under tremendous pressure now, and the downgrade will just make the funding of the banks even more difficult. With Greece debt at high probability of default, the banking crisis will spiral and liquidity may dry up soon.
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