Bloomberg reported the government of Greece shut its banks and imposed capital controls in an overnight announcement aimed to prevent the collapse of its financial system.

Greece sent shock waves through credit markets after the government shut its banks and imposed capital controls in an overnight announcement aimed to prevent the collapse of its financial system.

In a related story, Bloomberg reported the cost of insuring corporate bonds against default jumped by the most since the day Lehman Brothers holdings failed.

Bloomberg said the Markit iTraxx Europe index of credit-default swaps on 125 investment-grade companies surged by as much a 20% to 80 basis points.

Read the full Bloomberg report here.