by Calculated Risk on 2/04/2008 12:54:00 AM

Quote of the day from the Financial Times: Private equity firms unlikely to rescue Ambac and MBIA

"If we worry that we can get shot from the shadows by something we can't see coming, it is not for us," says the managing director in charge of financial service investments for one of the leading private equity funds.

"The financial guarantors pass neither the shadow test nor the ability-to-understand test."

The downgrade watch continues.