The Federal Reserve's bailout of AIG has not removed the perceived counterparty credit risk from many US banks and brokers as shown by credit default swaps spreads that were wide for many of them Wednesday and by the dramatic plunge in the stock prices of financials.

Dave Klein, manager of credit indices at New York-based Credit Derivatives Research, said CDS spreads rallied and tightened Wednesday but have now jumped across the board, putting US banks at the widest levels ever.