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Funds News

Merrill CDS costs jump on Lewis separation comment

NEW YORK, March 27 (Reuters) - The cost to insure the debt of Merrill Lynch surged on Friday after Kenneth Lewis, Chief Executive at Bank of America BAC.N, which acquired Merrill, was reported as saying that the U.S. should consider separating commercial lenders from investment banking activities.

Credit default swaps insuring Merrill Lynch’s legacy debt jumped 110 basis points to 575 basis points, or $575,000 per year for five years to insure $10 million in debt, according to Phoenix Partners Group.

Reporting by Karen Brettell; Editing by Diane Craft

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