Monday, February 18, 2008
Bond insurers are scrambling to find ways to improve their triple-A rating. On Friday Governor Spitzer told Congress that they had 3-5 days to find solutions or the regulators would step in. On the same day, FGIC, the holding company for the third-largest bond insurer, notified the New York Insurance Dept. that it would split its business between the safe municipal bonds and the risky subprime debt. Other bond insurers, like MBIA and Ambac, are raising capital or seeking other rescue plans. WSJ, Bond Insurer Seeks to Split Itself, Roiling Some Banks.