Financial Times FT.com

Monolines

Banks link to solve bond insurers crisis

By David Wighton, Aline van Duyn and Henny Sender in New York and Peter Thal Larsen in London

Published: February 1 2008 19:53 | Last updated: February 2 2008 02:49

US and European banks are joining forces to try to solve the crisis among US bond insurers that could exacerbate the impact of the credit squeeze.

One group, including Citigroup and Barclays, is examining options for supporting Ambac Financial, the bond insurer. Separate teams are working with other bond insurers, according to people close to the process.

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