New York insurance regulators recently said that the Government has not bond industry assistance plan, but with the bond insurance companies are likely to explore all options to resolve the issue of bonds. According to reports, New York Gov. Eliot Spitzer (Eliot Spitzer) to M BIA, An Bake (Ambac), such as bond insurance companies an ultimatum, ordering its 3-5 business days to find capital injection, To ensure that municipal bonds the highest credit ratings, or they will force the company split.
Security system responsible for handling debt crises of the New York State Insurance Secretary Eric Dina Luo (Eric Di-nallo), in his testimony to the House of Representatives shows that the company's debt-policy target is divided into two categories, namely, municipal bonds and the structure of Wall Street Of financial products, while the Government is the primary task is to protect the former. And the other by the same margin impact of problems in mortgage debt certificate (CDO), credit default exchange (CDS) structure of financial products, the Government is not prepared to intervene to help.
In his testimony, Dina Luo tend to protect the bond insurer's entire business, but if that can not be clearly do this, then he would give priority to the protection of municipal bond insurers and investors.
But he also said that while the bond trades without assistance plan, but the New York State regulators are working with the insurance company bonds of all possible options to solve the debt problem, including allowing them to split the bond insurance companies. U.S. bond insurers will be allowed to be relatively strong strength of the municipal bond insurance business and higher risk asset-backed securities and other structured finance products business from each other.
Earlier, According to foreign reports, the government's active operation, to the international financial giant Warren Buffett has issued recommendations on the 12th, he led by the Berkshire-indebted company to undertake a comprehensive M BIA, An Bake and FGIC currently covers 8,000 100 million U.S. dollars of municipal bonds, to Berkshire's AAA debt secured these bonds will not be downgraded. Dina Luo said that Buffett invited to the three major New York bond insurer of municipal bonds issued to provide reinsurance, is the main reason for worry about the safety and security of municipal bonds solid enough. But analysts worry that the municipal bonds sold debt-equivalent to claiming the most stable income assets.
However, the bond insurance companies do not seem to reject the Government's guidance. Last week lost the highest grade rating of FGIC bond insurance company, on the 15th to the competent authorities expressed their willingness to split the company will prepare the coverage of 220 billion U.S. dollars of municipal bonds and other securities underwriting business to cut open, in order to stabilize Municipal bond market.
In response, Dina Luo said, FGIC has applied for division, intends to municipal bond insurance, and other "good account", and the structure of financial products insurance "bad debts" split into two companies. New York and the Government has effectively started the operation. On the 16th, government officials have begun working with international financial giants such as Buffett and the sovereignty of foreign funds start negotiations in the hope that they the "good account" of the capital injection. Dina Luo split on the prospect of a considerable show of optimism, he said: "It was the entrance of the queue waiting for investment."
Security system responsible for handling debt crises of the New York State Insurance Secretary Eric Dina Luo (Eric Di-nallo), in his testimony to the House of Representatives shows that the company's debt-policy target is divided into two categories, namely, municipal bonds and the structure of Wall Street Of financial products, while the Government is the primary task is to protect the former. And the other by the same margin impact of problems in mortgage debt certificate (CDO), credit default exchange (CDS) structure of financial products, the Government is not prepared to intervene to help.
In his testimony, Dina Luo tend to protect the bond insurer's entire business, but if that can not be clearly do this, then he would give priority to the protection of municipal bond insurers and investors.
But he also said that while the bond trades without assistance plan, but the New York State regulators are working with the insurance company bonds of all possible options to solve the debt problem, including allowing them to split the bond insurance companies. U.S. bond insurers will be allowed to be relatively strong strength of the municipal bond insurance business and higher risk asset-backed securities and other structured finance products business from each other.
Earlier, According to foreign reports, the government's active operation, to the international financial giant Warren Buffett has issued recommendations on the 12th, he led by the Berkshire-indebted company to undertake a comprehensive M BIA, An Bake and FGIC currently covers 8,000 100 million U.S. dollars of municipal bonds, to Berkshire's AAA debt secured these bonds will not be downgraded. Dina Luo said that Buffett invited to the three major New York bond insurer of municipal bonds issued to provide reinsurance, is the main reason for worry about the safety and security of municipal bonds solid enough. But analysts worry that the municipal bonds sold debt-equivalent to claiming the most stable income assets.
However, the bond insurance companies do not seem to reject the Government's guidance. Last week lost the highest grade rating of FGIC bond insurance company, on the 15th to the competent authorities expressed their willingness to split the company will prepare the coverage of 220 billion U.S. dollars of municipal bonds and other securities underwriting business to cut open, in order to stabilize Municipal bond market.
In response, Dina Luo said, FGIC has applied for division, intends to municipal bond insurance, and other "good account", and the structure of financial products insurance "bad debts" split into two companies. New York and the Government has effectively started the operation. On the 16th, government officials have begun working with international financial giants such as Buffett and the sovereignty of foreign funds start negotiations in the hope that they the "good account" of the capital injection. Dina Luo split on the prospect of a considerable show of optimism, he said: "It was the entrance of the queue waiting for investment."
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