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BAILOUT? - New York Insurance Superintendent watching bond insurers, may intervene
- Thread starter Cdntrader
- Start date
this just in:
NEW YORK (Dow Jones)--Investor Warren Buffett says he isn't interested in helping troubled bond insurers Ambac Financial Group Inc. (ABK) and MBIA Inc. (MBI).
"We could have some kind of insurance transaction with them but we will not be investing in them or any other bond insurer. We've got our own bond insurer. Berkshire Hathaway Assurance is already up and running in New York State and has already done a couple of deals," the chief executive of Berkshire Hathaway Inc. (BRKA,BRKB), said in an interview on FOX Business Network on Tuesday"
:eek: :eek: :eek: :eek:
NEW YORK (Dow Jones)--Investor Warren Buffett says he isn't interested in helping troubled bond insurers Ambac Financial Group Inc. (ABK) and MBIA Inc. (MBI).
"We could have some kind of insurance transaction with them but we will not be investing in them or any other bond insurer. We've got our own bond insurer. Berkshire Hathaway Assurance is already up and running in New York State and has already done a couple of deals," the chief executive of Berkshire Hathaway Inc. (BRKA,BRKB), said in an interview on FOX Business Network on Tuesday"
:eek: :eek: :eek: :eek:
XL Loses $1.1 Billion on Stake in Bond Insurer Security Capital
By Josh P. Hamilton
Feb. 5 (Bloomberg) -- XL Capital Ltd., the Bermuda-based business insurer, said it lost $1.06 billon in the fourth quarter as it wrote down the value of investments including a stake in bond insurer Security Capital Assurance Ltd.
By Josh P. Hamilton
Feb. 5 (Bloomberg) -- XL Capital Ltd., the Bermuda-based business insurer, said it lost $1.06 billon in the fourth quarter as it wrote down the value of investments including a stake in bond insurer Security Capital Assurance Ltd.
Goldman's Viniar Says Fear Rules in Credit Markets (Update1)
By Christine Harper
Feb. 6 (Bloomberg) -- U.S. credit markets are trading as if the economy is in a recession because investors' ``fear has overwhelmed greed,'' Goldman Sachs Group Inc. Chief Financial Officer David Viniar said today.
``Credit markets are trading like we're in the middle of the worst recession we've seen in a very, very long time,'' Viniar said at an investor conference in Naples, Florida, sponsored by Credit Suisse Group.
Viniar, 52, also said he expects to see a plan devised that will help the monoline bond insurers, which are facing potential rating downgrades. Insurers including MBIA Inc., Ambac Financial Group Inc. and Financial Guaranty Insurance Co. are at risk of losing their AAA ratings because mortgage-backed securities they've insured have declined in value.
New York State Insurance Superintendent Eric Dinallo told a meeting of Wall Street banks and brokerages that they ``created this mess,'' making necessary a plan to rescue bond insurers, the Wall Street Journal reported today, citing people familiar with the matter.
`More Complicated'
``It is likely that you will see some solutions to what's going on with the monolines,'' Viniar said. ``You have a number of companies who are involved in a lot of different things, so I think it's going to be more complicated'' than the industry bailout of hedge fund Long-Term Capital Management LP in 1998, he said.
Conditions in the leveraged-lending market are similar to August and September, when liquidity all but disappeared, Viniar said. Still, Goldman is ``pretty bullish'' on the private-equity business and the longer-term outlook, and is ``very happy'' with most of its own investments, he said.
By Christine Harper
Feb. 6 (Bloomberg) -- U.S. credit markets are trading as if the economy is in a recession because investors' ``fear has overwhelmed greed,'' Goldman Sachs Group Inc. Chief Financial Officer David Viniar said today.
``Credit markets are trading like we're in the middle of the worst recession we've seen in a very, very long time,'' Viniar said at an investor conference in Naples, Florida, sponsored by Credit Suisse Group.
Viniar, 52, also said he expects to see a plan devised that will help the monoline bond insurers, which are facing potential rating downgrades. Insurers including MBIA Inc., Ambac Financial Group Inc. and Financial Guaranty Insurance Co. are at risk of losing their AAA ratings because mortgage-backed securities they've insured have declined in value.
New York State Insurance Superintendent Eric Dinallo told a meeting of Wall Street banks and brokerages that they ``created this mess,'' making necessary a plan to rescue bond insurers, the Wall Street Journal reported today, citing people familiar with the matter.
`More Complicated'
``It is likely that you will see some solutions to what's going on with the monolines,'' Viniar said. ``You have a number of companies who are involved in a lot of different things, so I think it's going to be more complicated'' than the industry bailout of hedge fund Long-Term Capital Management LP in 1998, he said.
Conditions in the leveraged-lending market are similar to August and September, when liquidity all but disappeared, Viniar said. Still, Goldman is ``pretty bullish'' on the private-equity business and the longer-term outlook, and is ``very happy'' with most of its own investments, he said.
MBIA to Issue $750 Million in Common Stock
Wednesday February 6, 4:21 pm ET
ARMONK, N.Y.--(BUSINESS WIRE)--MBIA Inc. (NYSE:MBI - News) today announced that it will issue approximately 50.3 million shares of its common stock to raise $750 million in an underwritten registered offering. J.P. Morgan Securities Inc. and Lehman Brothers Inc. are acting as the joint book-running managers of this offering.
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Warburg Pincus will provide a backstop for this offering by agreeing to purchase up to $750 million of convertible participating preferred stock, subject to limited conditions. The convertible participating preferred stock will mandatorily convert into the Companyâs common stock, upon a shareholder vote. Warburg Pincus has the option to purchase up to $300 million of the convertible participating preferred stock under the backstop.
Wednesday February 6, 4:21 pm ET
ARMONK, N.Y.--(BUSINESS WIRE)--MBIA Inc. (NYSE:MBI - News) today announced that it will issue approximately 50.3 million shares of its common stock to raise $750 million in an underwritten registered offering. J.P. Morgan Securities Inc. and Lehman Brothers Inc. are acting as the joint book-running managers of this offering.
ADVERTISEMENT
Warburg Pincus will provide a backstop for this offering by agreeing to purchase up to $750 million of convertible participating preferred stock, subject to limited conditions. The convertible participating preferred stock will mandatorily convert into the Companyâs common stock, upon a shareholder vote. Warburg Pincus has the option to purchase up to $300 million of the convertible participating preferred stock under the backstop.
I dont get it why the stock is rallying so hard.
they are giving away more than a third of the company plus all the future costs of paying out these dividends. at the same time fitch is saying that capital doesnt matter and moody's is making an analysis of the 'financial guarantors industry as a whole' not just the capital
they are giving away more than a third of the company plus all the future costs of paying out these dividends. at the same time fitch is saying that capital doesnt matter and moody's is making an analysis of the 'financial guarantors industry as a whole' not just the capital
Quote from Daal:
I dont get it why the stock is rallying so hard.
they are giving away more than a third of the company plus all the future costs of paying out these dividends. at the same time fitch is saying that capital doesnt matter and moody's is making an analysis of the 'financial guarantors industry as a whole' not just the capital
it shows ppl are willing to believe the company is viable.