On Tuesday, shifting its focus from the weaker parts of the euro zone to the core, it cut the credit ratings of six German banksdue to potential contagion from the rest of the financial system.
Glass Steagall was passed to prevent commercial banks taking government insured deposits from failing due to losses incurred through riskier investment banking activities (issuing stock and other securities).
But the banks are closing down fresh credit - and the courts are due to hear bankruptcy proposals from the trading firm's domestic creditors on Thursday after talks with foreign lenders broke down.
The deal with the French banks, leaked to French newspapers on Sunday, would mean French banks only walking away with 30% of the proceeds from the Greek debt coming due between now and 2013.