Oh, no, a big bank’s denying rumors…

This is eerily reminiscent of what Bear Stearns and Lehman Bros. did before they blew up:

Exactly what rumors are they categorically denying? ‘Not sure, but the cost of insuring against a SocGen default is up by 10% today. I’m guessing the market’s speculating they own some toxic Italian or Spanish debt.

Still, what happened to Bear Stearns’ CDSs makes the chart above look positively tame:

Here’s a comparison of the action.

 

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