Borrowing costs would rise as a result of the potential downgrades and banks would need to increase collateral. This will position the ratings agency at odds with bond investors who are betting that financial firms will become safer in the long run due to the new capital rules and trading limits. Banks are facing higher funding costs globally, due to the market turmoil caused by the debt problems of Greece. Moody’s said that other banks that might be downgraded by two levels include Barclays Plc, Credit Agricole SA, Royal Bank of Canada, BNP Paribas SA, HSBC Holdings Plc and Macquarie Group Ltd. The banks that might be downgraded by one level include Bank of America Corp., Royal Bank of Scotland Group Plc, Nomura Holdings Inc. and Societe Generale SA.