Sox First

How bad are the French banks? The French banking system with its massive exposure to Greek debt is a basket case.

Last week, we had the news that Moody's downgraded the credit rating of France's second largest bank Credit Agricole and third-ranked Societe Generale.

Now we have reports that executives from BNP Paribas are heading off to the Middle East to try and get some cash. There is now speculation that the Gulf state of Qatar is in talks with the bank about taking a possible stake. Good luck. Talk about throwing good money after bad.

French banks are in such a bad state that they could drag down the global economy. The world's biggest bond investment fund, Pimco, is now warning that French banks could tip Europe "into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy

• The fall of the investment banks
• Banks stockpiling cash
• Cashing in on the disgust with banks
• Banks fight to keep accounting tricks
• Bailed out banks continue to live it up
• Breaking up the banks
• Millions desert banks
• Banks block pay change
• How taxpayer dollars made US banks rich
• A run on the French banks
• Why Europe will drag down American banks