Financial Times FT.com

Setback for monoline rescue

By Henny Sender and Aline van Duyn in New York

Published: February 3 2008 22:04 | Last updated: February 4 2008 03:39

Leading private equity firms are unlikely to participate in any recapitalisation of Ambac and MBIA, increasing the pressure on banks to come up with a rescue package for the bond insurers.

A number of firms, including Bain Capital, Carlyle Group, Kohlberg Kravis Roberts and TPG, have looked at investing in the cash-strapped groups, which guarantee the value of everything from municipal bonds to the most complicated mortgage securities.

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