The plight of Greek banks has been a frequent topic of conversation on this site in recent weeks. Now that the country has announced it will draw on emergency aid from other euro-area countries and the IMF, these lenders—who are heavily exposed to rapidly souring sovereign debt and particularly reliant on the ECB for liquidity—have come under further pressure.

In late trading today, the spread on credit default swaps for Greek sovereign debt soared above the spreads for swaps written on the country’s largest banks. This says less about the safety of the banks than it does about the scale of the Greek state’s fiscal distress.