Editorial comment: Time to resolve monoline mess
If it is possible to divide monolines in half equitably, legally and quickly, then it is a good solution that regulators should support
Monolines
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Recent downgrades of monolines have raised fears about a domino effect leading to market losses of the securities they guarantee.
FGIC in talks on possible sale
FGIC, the struggling bond insurer part-owned by private equity firm Blackstone Group, said it had started talks with investors about selling all or part of the company or reinsuring a large part of its portfolio
Dinallo sets FGIC 30-day target
Eric Dinallo, the New York State insurance superintendent who is overseeing efforts to prop up FGIC, said the troubled bond insurer should come up with fresh capital in “the next 30 days” to avoid worst-case scenarios such as closing down
Moody’s tougher on mortgage lenders
Moody’s, the rating agency, proposed measures to help ensure that mortgage lenders provide more complete and accurate borrower information than they did during the subprime lending boom
US-backed banks to fill insurance breach
The Federal Home Loan Banking system, a government-sponsored network of US banks, is seeking to enter the so-called ‘monoline” insurance market to help local governments that have been hurt by the credit market storm
Subprime saga packs a global punch
As the subprime saga has unfolded in recent months, it has packed a powerful – and somewhat unexpected – globalisation punch
Related content and features
Interactive
Monoline meltdown?
What are monolines and how do they work? Our interactive feature explains what the threat to their triple-A ratings from the credit agencies could mean for investors, banks, municipal bond issuers and the monolines themselves.
Comment and Analysis
Analysis: Markets assess the costs of a monoline meltdown
Markets assess the costs of a monoline meltdown: the municipal bond insurers’ subprime exposure could result in downgrades that would have effects right across the financial system
Monolines offer Buffett chance to enter the fray
The Sage of Omaha has been eyeing the municipal bond sector for years, so insurers’ troubles is the opportunity
The Short View: Credit and equity decoupling
The equity market seems to think that it can safely ignore the credit markets, says John Authers
Muni-bond market gridlock
The crisis in some short-term municipal debt, known as auction rate securities, a $330bn market, has led to some whacky outcomes
Muni market hit
The subprime virus has mutated. It has now infected the municipal bond market. The same issues that roiled the asset-backed commercial paper market in the autumn are cropping up again
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