Citi CDSs soaring, as stock plunges

All top banks seem to be in trouble, but the markets seem to think Citi is by far the bank most likely to default on its bonds. As its woes continue to mount, Citigroup's credit default swaps spreads widened to a record 580 basis points, reports Reuters. The swaps had traded at 491 basis points just a few days before soaring to the record high.

Meanwhile, Bank of America's CDS costs hovered around 347 basis points, and Wells Fargo's hovered around 300 basis points. Citi's CDS problems are compounded by its falling stock, which dropped to below $1 recently from a high of $55.70 in 2006. Total market cap destruction: More than $270 billion. Ouch.  

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