MORE BAD NEWS

This fits in with the ABX.HE declines -

Bank Default Swaps at Highest on Record Amid Writedown Concern
By Steve Rothwell

Nov. 21 (Bloomberg) -- Credit-default swaps on European bank debt rose to a record on concern that lenders will write down more securities linked to subprime mortgages.

Contracts on the Markit iTraxx Financial Index, a benchmark for the cost of protecting bank and insurance company debt against default, increased 5 basis points to 62 basis points, the highest in the three years since it began, according to Deutsche Bank AG prices.

Credit-default swaps, contracts conceived to protect bondholders against default, pay the buyer face value in exchange for the underlying securities or the cash equivalent should a company fail to adhere to its debt agreements.