Traditionally focused on insuring municipal deals, bond
insurers got into trouble after they ventured into structured
products to boost returns.
Massive delinquencies on U.S. subprime mortgages battered
the credit quality of these products, increasing the capital
that bond insurers need to maintain their crucial “AAA”
ratings.
As bond insurers’ ratings are downgraded, so are ratings on
much of the debt […]
NEW YORK, March 26 (Reuters) - A coalition of
environmentalists, consumer advocates and insurers has formed
to oppose proposed legislation that would expand a federal
flood insurance scheme.
The measure would add coverage for wind damage, which the
coalition says could prove costly for taxpayers and send the
wrong message about developing environmentally-sensitive,
catastrophe-prone areas.
Proponents of revamping the federal […]
Property group City Pacific (CIY.AX: Quote, Profile, Research) said yesterday that
there was no threat to A$1.1 billion in loans its First
Mortgage Fund had extended to property developments. “We’ve
never had issues with loans being repaid,’ said managing
director Phil Sullivan. He also dismissed concern over a
Victorian Government termination notice to City Pacific’s
Martha Cove development on the […]
NEW YORK/FRANKFURT (Reuters) - China’s major financial institutions, including its sovereign wealth fund China Investment Corp (CIC), poured cold water on the idea of the possible purchase of Allianz’s (ALVG.DE: Quote, Profile, Research) Dresdner, citing investment risk and political problems as major concerns, Chinese bankers told Reuters on Thursday.
Industrial and Commercial Bank of China (601398.SS: […]
NEW YORK (Reuters) - Bond insurer FGIC Corp said on
Wednesday that its exposure to mortgage losses exceeded legal
risk limits and it may adjust its loss reserves due to
litigation related to stricken German bank IKB.
FGIC, the parent of bond insurer Financial Guaranty
Insurance Co, earlier this month sued German state-owned IKB
(IKBG.DE: Quote, Profile, Research) on […]
NEW YORK, March 27 (Reuters) - In his latest book, Wall
Street strategist Barton Biggs contends that financial markets
predicted key turning points in World War Two, and investors
can use that predictive power to survive catastrophe.
Biggs, one of Wall Street’s biggest stars when he was at
Morgan Stanley, lays out in “Wealth, War %26amp; Wisdom” (Wiley,
$29.95) […]
NEW YORK (Reuters) - California Treasurer Bill Lockyer is exploring the possibility of having state pension funds create a new bond insurer, his spokesman said on Thursday.
Lockyer has no immediate plans to use Berkshire Hathaway’s (BRKa.N: Quote, Profile, Research) new bond insurance unit following congressional testimony earlier this month by Ajit Jain, the head of […]
NEW YORK (Reuters) - Warren Buffett concluded a highly
profitable year for his Berkshire Hathaway Inc (BRKa.N: Quote, Profile, Research)
(BRKb.N: Quote, Profile, Research) with an admonition for lenders who fueled the housing
crisis and words of caution that Berkshire’s own results might
be less stellar than in 2007.
Despite an 18 percent fall in fourth-quarter profit, net
income […]
Ambac is in talks with banks and others to raise about $3 billion of capital, according to people familiar with the matter.
If successful, Ambac is expected to meet Moody’s target level for the top rating, the rating agency said in a statement.
Ambac’s ratings are on review as rating agencies view its capital as insufficient due […]
NEW YORK, Feb 29 (Reuters) - Defaults on privately insured
U.S. mortgages rose 31.3 percent in January to the highest
level on record, as more homeowners failed to keep up with
their loan payments.
The Mortgage Insurance Cos of America said on Friday 68,950
insured borrowers were at least 60 days late on payments in
January, up from 52,528 […]