U.S. and EU ready to help large banks
Because of mortgage bonds Wei Yueshuai continues to rise, bond insurers facing huge claims
Ambac companies trying to keep 3 A credit rating.
Well-known U.S. financial channel CNBC recently quoted informed sources as saying that the parties to rescue Wall Street bogged down in the quagmire of the loan-to-crisis U.S. bond insurance giant - Ambac's plans may be on the 25th or the 26th introduced. Affected by this, the company's shares rose 16 percent on that day, to close at 10.71 U.S. dollars per share in and promote U.S. financial stocks rebound. Meanwhile, the U.S. investor confidence has been strengthened, the United States last Friday all three major indexes rose.
Trying to keep 3 A credit rating
The report did not provide details of the rescue plan, but said the plan could save the company Ambac crucial 3 A credit rating. Since the outbreak of the crisis, loan and mortgage bonds Wei Yuelv continues to rise, bond insurers facing huge claims. The United States and some European banks are preparing large-scale cooperation aid ailing U.S. bond insurer, to prevent further impact the credit crunch.
The Associated Press quoted the same day informed source as saying that a U.S. Citigroup, UBS, Wachovia, Royal Bank of Scotland is working with the consortium composed of New York state insurance departments work together to seek to make the company from Ambac plight of the solution . He said that things seem to have some progress.
Ambac companies to have been a few weeks with the New York State banking regulators and to negotiate purpose is to raise funds in order to maintain its 3 A credit rating.
Goldman Sachs analyst said earlier that, Ambac company needs to raise about 3.5 billion U.S. dollars of funds, to keep Moody's and Standard & Poor's to the 3 A credit rating, Fitch has been reduced by Ambac's credit rating.
Notes the insurance industry in difficult circumstances
Another U.S. giant MBIA bond insurance company, announced that in the fourth quarter net loss of 2.3 billion U.S. dollars, the company's history as the most serious single-quarter loss. The company may be forced to substantial funding to offset the depreciation of assets related to loan-to-the adverse effects.
The time of distress, MBIA announced on the 19th of this month to return to former CEO Joseph Brown to control the company. The 59-year-old Brown in 1999 to early 2004 as head of MBIA, the re-took office after the primary task is to try to keep the company 3 A credit rating, and to develop plans to save bogged down in the quagmire of the loan-to-MBIA.
Brown said last week that the bond insurer of municipal bond insurance business should be and asset-backed securities (ABS) and other higher-risk insurance for the separation. He announced in a statement, because of the bond insurance industry future direction took a different view, the company decided to withdraw from major industry organizations - the Association of financial guarantee insurance.
Another media, in the United States several other major insurers in bonds, FGIC last week to seek regulatory permission to split its operations; Ambac said do not intend to take similar action.
"Unit God," said Master Warren Buffett's investment in the United States this month to the United States three largest bond insurer Ambac, MBIA and FGIC proposed, is willing to their underwriting of municipal bonds to provide reinsurance, but does not include other high - Risk financial instruments.
Because of mortgage bonds Wei Yueshuai continues to rise, bond insurers facing huge claims
Ambac companies trying to keep 3 A credit rating.
Well-known U.S. financial channel CNBC recently quoted informed sources as saying that the parties to rescue Wall Street bogged down in the quagmire of the loan-to-crisis U.S. bond insurance giant - Ambac's plans may be on the 25th or the 26th introduced. Affected by this, the company's shares rose 16 percent on that day, to close at 10.71 U.S. dollars per share in and promote U.S. financial stocks rebound. Meanwhile, the U.S. investor confidence has been strengthened, the United States last Friday all three major indexes rose.
Trying to keep 3 A credit rating
The report did not provide details of the rescue plan, but said the plan could save the company Ambac crucial 3 A credit rating. Since the outbreak of the crisis, loan and mortgage bonds Wei Yuelv continues to rise, bond insurers facing huge claims. The United States and some European banks are preparing large-scale cooperation aid ailing U.S. bond insurer, to prevent further impact the credit crunch.
The Associated Press quoted the same day informed source as saying that a U.S. Citigroup, UBS, Wachovia, Royal Bank of Scotland is working with the consortium composed of New York state insurance departments work together to seek to make the company from Ambac plight of the solution . He said that things seem to have some progress.
Ambac companies to have been a few weeks with the New York State banking regulators and to negotiate purpose is to raise funds in order to maintain its 3 A credit rating.
Goldman Sachs analyst said earlier that, Ambac company needs to raise about 3.5 billion U.S. dollars of funds, to keep Moody's and Standard & Poor's to the 3 A credit rating, Fitch has been reduced by Ambac's credit rating.
Notes the insurance industry in difficult circumstances
Another U.S. giant MBIA bond insurance company, announced that in the fourth quarter net loss of 2.3 billion U.S. dollars, the company's history as the most serious single-quarter loss. The company may be forced to substantial funding to offset the depreciation of assets related to loan-to-the adverse effects.
The time of distress, MBIA announced on the 19th of this month to return to former CEO Joseph Brown to control the company. The 59-year-old Brown in 1999 to early 2004 as head of MBIA, the re-took office after the primary task is to try to keep the company 3 A credit rating, and to develop plans to save bogged down in the quagmire of the loan-to-MBIA.
Brown said last week that the bond insurer of municipal bond insurance business should be and asset-backed securities (ABS) and other higher-risk insurance for the separation. He announced in a statement, because of the bond insurance industry future direction took a different view, the company decided to withdraw from major industry organizations - the Association of financial guarantee insurance.
Another media, in the United States several other major insurers in bonds, FGIC last week to seek regulatory permission to split its operations; Ambac said do not intend to take similar action.
"Unit God," said Master Warren Buffett's investment in the United States this month to the United States three largest bond insurer Ambac, MBIA and FGIC proposed, is willing to their underwriting of municipal bonds to provide reinsurance, but does not include other high - Risk financial instruments.
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