As I wrote upthread, currently the Serious People are fighting over the German government's insistence to involve private capital in the rescue, in the form of voluntary early rollovers. Opposed: everyone, but above all France (the country with the highest liabilities in Greece), the ECB (the bank with most Greek treasuries, around €50 billion) and Germany's own Bundesbank. The opponents argue that rating agencies will interpret the early rollover as a default, causing actual default, and spreading elsewhere. And rating agencies are glad to reinforce that argument:

Moody's puts French banks on review for downgrade over Greece | Reuters

(Reuters) - Moody's Investors Service on Wednesday placed France's top three banks, BNP Paribas, Societe Generale and Credit Agricole (CASA), on review for a possible downgrade, citing the banks exposure to Greece's debt crisis.

"Today's actions reflect Moody's concerns about these banks' exposures to the Greek economy, either through direct holdings of government bonds or credit extended to the Greek private sector directly or through subsidiaries operating in Greece, a key factor for CASA and SocGen due to their local Greek banks," Moody's said in a note.

(I read in one of the links upthread that most of the French exposure is in the form of credit extended to own subsidiaries in the Greek private sector.)

This whole battle is bizarre. If only the Greek people would manage to get their parliamentarians to put an end to it.

_{*Lunatic*, n.
One whose delusions are out of fashion.}