Mogan Stanley Melting Down?

Reuters is one of many reporting rather nasty spikes in Morgan Stanley's credit default swaps. To wit:

Debt protection costs for Morgan Stanley rose as the bank's five year credit default swaps rose to an upfront payment of 28 percent the sum insured plus 500 basis points a year, from 19 percent on Thursday, according to Phoenix Partners Group.

That and the downgrade warning from Moody's make it a tough day for what's left of the bank.
Morgan Stanley CDS rise to 28 pct upfront [Reuters]
Morgan Stanley Extends Drop; Moody's Mulls Rating Cut [Bloomberg]