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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Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
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