An ill-timed acquisition has made Credit Agricole the foreign bank with the most to lose in the Greek crisis.

Despite Spanish Prime Minister Mariano Rajoy's assertion that the matter of his nation's enfeebled banks was "resolved," yields on Spain's government bonds rose, and Fitch Ratings downgraded 18 Spanish lenders.

Italian Prime Minister Mario Monti is on deck.

Breakdown: Jamie Dimon testifies this morning at a Senate Banking Committee hearing on JPMorgan's recent trading losses. As we noted last night, Mr. Dimon's prepared remarks are dry stuff. Committee chair Sen. Tim Johnson, a South Dakota democrat, will ask “How can a bank take on ‘far too much risk’ if the point of the trades was to reduce risk in the first place?” according to Bloomberg, and Sen. Richard Shelby, the top-ranking Republican on the committee, will focus on specific nature of the trades. Other potential questions: How were executives in the chief investment office paid? And how involved was Mr. Dimon in the decision to change the way the CIO calculated its VaR, or the amount of money the office could lose on a given day?

Smith Barney no more: Morgan Stanley intends to drop the Smith Barney name from its retail brokerage, chief executive office James Gorman said yesterday. Morgan Stanley acquired a stake in Smith Barney, the firm that made "money the old fashioned way,"  in 2009, and plans to complete the outright purchase of Citigroup's remaining shares in the years to come. AsThe New York Timespoints out, Smith Barney joins Shearson, E.F. Hutton and Salomon Brothers among former Sandy Weill acquisitions to wind up on the scrap heap.

Moody's man: The Wall Street Journal has a go at profiling Gregory Winans Bauer, Moody's global head of banking, the man behind the potential ratings downgrades stalking the world's leading lenders. What did they find? "An avid yachtsman" leading 170 banking analysts neither as well known or highly paid as the bankers whose dreams they are currently haunting.

Gupta grilled: Rajat Gupta's daughter Geetanjali testified in Judge Jed Rakoff's courtroom yesterday. Would Ms. Gupta do anything for her father, a prosecutor asked on cross-examination? “I would do anything for my father, but I would not lie, though, on the stand,” she said.

Paper money: Syria released new Russian-printed banknotes into circulation, four Damascus-based bankers told Reuters.

Wipeout: The financial crisis knocked 39 percent off median household wealth, the Federal Reserve said yesterday, as the collapse of the housing market pushed net worth to 1992 levels.

Settled: The Treasury Department reached a $619 million settlement with ING Bank after the government charged that the Dutch lender breached U.S. sanctions against countries such as Iran, Libya and Cuba.

When Tim Johnson was rushed to the hospital last December with a cerebral hemorrhage, the future of the freshly-won Democratic Senate majority was immediately called into doubt: Had he left the seat for any reason, South Dakota’s Republican Governor would have appointed his successor, presumably swinging the Senate to the G.O.P. Now, though, he’s ready to jump back into the game – and his party’s prospects for Senate control years into the future are strong.

Johnson will re-emerge publicly later this afternoon at a “Thank You, South Dakota” event in his home state, and in interview to air tonight on ABC News – with fellow brain injury survivor Bob Woodruff –  he confirms that he will seek re-election in 2008.

Suddenly, he appears to be a decent bet for a third term – a far cry from 2002, when his exceedingly narrow victory over Republican John Thune took days to verify. It now appears that Mike Rounds, South Dakota’s two-term Republican governor, is not interested in an ’08 Senate bid, and the state’s lone Congresswoman – at-large Rep, Stephanie Herseth – is a Democrat, ensuring that Johnson won’t face a challenger from that slot. Add to that the understandable goodwill and sympathy Johnson’s near-death experience has produced – not to mention the fund-raising that his Democratic Senate colleagues did on his behalf while he was recovering – and he seems positioned to win a third term next year, even though red state South Dakota should be one of the G.O.P.’s top pick-up opportunities next year.

If South Dakota ends up staying in Democratic hands next year, the only other state where Republicans would have decent pick-up odds is Louisiana, where the G.O.P. received some good news this week with word that the state’s Democratic Treasurer, John Kennedy, plans to switch parties in his re-election bid this year – potentially setting the stage for an ’08 challenge to Democratic Senator Mary Landrieu. Louisiana’s changed demographics, the result of Hurricane Katrina, have yet to be tested in a statewide race, but figure to favor the G.O.P.

There are a few other potential opportunities for the G.O.P. to gain Senate seats next year: Iowa’s Tom Harkin never seems to win in a landslide, and neither does New Jersey’s Frank Lautenberg, for that matter. But Harkin has been elected to the Senate four times now, and there’s no reason – yet – to think the G.O.P. has stumbled on a new formula that might actually defeat him – especially if ’08 proves to be a Democratic year nationally. And two things are constant when it comes to New Jersey Senate races over the last four decades: Republicans always make lots of noise about them, but Democrats always win them.  

The health condition of Senator Tim Johnson of South Dakota is improving.

Rudy Giuliani's former pollster Frank Luntz outlines the former mayor's strengths against John McCain: Giuliani is an outsider unafraid of the New York Times; is the embodiement of a city reborn; he has a record of results.

When Jon Corzine is on vacation, Kris Kolluri is governor of New Jersey.

Operators of adult homes have settled a lawsuit with Eliot Spitzer.

The challenges facing Spitzer as he takes office may not be as stiff as those that George Pataki inherited from Mario Cuomo.

Spitzer's wife will have an office in the capitol.

The Albany County DA and the head of the state's lobbying commission met yesterday to see how their offices can coordinate their efforts.

The negotiations between police union leaders and City Hall are not going well.

And the district attorney in the Duke rape case was hit with ethics charges.

-- Azi Paybarah

The New Jersey legislature voted for civil unions.

Hillary Clinton had an expensive lunch with Al D'Amato and Ed Koch.

On Monday, Hillary will go on the Today show, and on Wednesday she'll be on The View.

Howard Kurtz is intrigued with the thought of Dennis Kucinich running for president again.

John McCain said 15,000 to 30,000 more troops should be sent to Iraq.

George Pataki has his final days in Albany ruined by Sheldon Silver.

Eliot Spitzer may name his top transportation adviser to head the MTA.

And Rep. Sue Kelly, who lost her re-election to John Hall, spent $25.75 per vote.

-- Azi Paybarah

-- Azi Paybarah

Hillary Clinton met with her husband's political advisers last night in DC.

George Will wants Barack Obama to run.

Bronx state Senator Efrain Gonzalez, Jr. is charged with pocketing $400,000 from non-profits that received state aid.

Negotiations in Albany over key bills are deadlocked.

The plan to close some New York hospitals is headed for approval.

The Post says that the Albany DA has enough to indict Alan Hevesi on criminal charges.

Bill Hammond says Alan Hevesi is in denial.

The sale of government office space in Manhattan before its value was determined is "at best, bizarre and, at worst, illegal," said Assemblyman Richard Brodsky.

Daily News editors say there's no reason the Public Authorities Control Board should not approve the Atlantic Yards Project.

And City Comptroller Bill Thompson wants Google and Yahoo to address censorship issues.

-- Azi Paybarah

Rudy Giuliani hired RNC political director Mike DuHaime.

Adam Nagourney said DuHaime should silence questions about how serious his presidential bid is.

John McCain's finance committee is starting to take shape.

Here's a new Draft Obama ad that will start running in New Hampshire.

A college Republican club in Massachusetts that already endorsed McCain for president got an earful from a Mitt Romney supporter.

The architect of Eliot Spitzer's investigations of Wall Street may be the state's new superintendent of insurance .

Greg Sargent says the last line in the Times editorial today means they're calling for troop withdrawal from Iraq.

A former CNN news division chief is launching an all-Iraq news site next week.

Before referring questions to his lawyer, the twice-indicted state Senator from the Bronx, Efrain Gonzalez, Jr., said he's innocent.

New addition to the city comptroller's race in 2009: Brooklyn Assemblyman William Boyland, Jr., according to Crain's.[subscription]

Chuck Bennett has an early look at the Transport Workers Union vote for union president, which closes on Friday.

And Yoda wonders about another, less-covered Albany scandal.

-- Azi Paybarah