The widening is driven by the unwind risk of the London Whale IG CDX positions as well as the widening across the financials' CDS. If JPM decides to restructure their CIO portfolio, they may need to unwind the IG CDX position - buying back the protection they had sold. That would drive the premium (spread) higher.
|5-year IG CDX|
SP500 futures are down 11.25 in after hours trading. JPM CDS spikes over 20bp.
|JPM 5 year CDS|