Wednesday, January 23, 2008

Financial Times: Banks asked to Bail out Bond Insurers

by Calculated Risk on 1/23/2008 05:38:00 PM

From the Financial Times: Banks pressed to bail out bond insurers

Eric Dinallo, New York insurance superintendent, has met executives at the banks and has strongly urged them to provide $5bn in immediate capital to support the bond insurers, the largest of which are MBIA and Ambac, and to ultimately commit up to $15bn.

... Mr Dinallo’s plan has not met with uniform support among banks ... One industry source said some banks would prefer to see the federal government coordinate some kind of rescue plan for the monolines.
This was the good news today?

Here is a later story from the FT: Regulator offers hope for bond insurers