Regulatory actions against Goldman Sachs Group, Inc., have sent credit default swap spreads ballooning, not just for Goldman, but for the banking sector as a whole, reports Fitch Solutions.

The firm said Tuesday that CDS spreads on Goldman widened 41% following the U.S. Securities and Exchange Commission’s announcement that it is suing Goldman, alleging fraud relating to a collateralized debt obligation it structured and sold in 2007. CDS liquidity for Goldman also spiked, “reflecting the growing uncertainty over the bank’s credit condition,” Fitch says.

It also observes that the repercussions from this case have spilled over to the broader banking sector, sending regional banking CDS spreads wider in North America (4.3%) and Europe (1%). Spreads for many firms have widened notably, too.

Fitch Solutions, a division of the Fitch Group, focuses on the development of fixed-income products and services, bringing to market a wide range of data, analytical tools and related services. The division is also the distribution channel for Fitch Ratings content.

IE