Cost of insuring banks' bonds rises on foreclosure woes

The cost of insuring the debt of individual banks has risen as investors are increasingly concerned about the foreclosure issue. Meanwhile, the Counterparty Risk Index, a gauge of banks' creditworthiness, increased about 6%, highlighting fears that lenders may face litigation over problems with foreclosure documents. Banks, however, have expressed confidence that the issue is with the process and not the actual foreclosures.

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