U.S. banks’ CDS prices surge as contagion concern widens

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By Mehnaz Yasmin (Reuters) – A jump in the cost for Wall Street banks to insure bonds against default on Wednesday was another worrisome indicator of credit stress for investors amid the crisis at Credit Suisse and at U.S. regional banks. According to S&P Global Market Intelligence, spreads on five-year credit default swaps on JPMorgan Chase & Co, Bank of America Corp, Morgan Stanley and Wells Fargo shot up to their highest since October, while those for Goldman Sachs and Citigroup Inc are highest since November. “Credit spreads are telling you there is systemic risk in the system,” said Lance…

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