UPDATE 1-US bank protection hit new highs on loss concerns

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NEW YORK, March 5 (Reuters) - The cost to insure the debt of Citigroup (C.N), Bank of America (BAC.N) and Wells Fargo & Co (WFC.N) hit new highs on Thursday as concerns about new bank losses grew.

Moody's late on Wednesday said it may cut its ratings on Wells Fargo, warning that losses from assets it took on from its acquisition of Wachovia will hurt its capital ratios.

Bank of America was also placed on review for downgrade and the outlook on JPMorgan Chase & Co (JPM.N) was changed to negative, from stable, indicating it is more likely to be cut in the next two years. For details see [ID:nN04260322].

"Wells Fargo has been considered among the relatively safe-haven names, however the places to hide are growing fewer and fewer," said John Atkins, credit analyst at IDEAglobal in New York.

Citigroup's credit default swaps spreads widened to a record 580 basis points, or $580,000 per year for five years to insure $10 million debt, said a trader. The swaps had traded at 491 basis points on Wednesday, according to Markit Intraday.

Bank of America's CDS costs jumped 31 basis points to 347 basis points and Wells Fargo's CDS jumped 52 basis points to 302 basis points, according to Markit. (Reporting by Karen Brettell; Editing by James Dalgleish)