Monoline Insurer News

It seems likely that losses from monoline exposure could impact second quarter earnings by nearly $10 billion, nearly doubly the previous loss amount.  The hardest hit among financial companies will likely be Citigroup (NYSE: C), Merrill Lynch (NYSE: MER), and UBS (NYSE: UBS).   Such is the latest from Meredith Whitney from Oppenheimer.  It is likely that Citigroup will post another loss, perhaps has high as $.50 per share, compared to previously expected quarter in the black.

Finally.  Standard & Poor’s downgraded monoline bond insurers MBIA (NYSE: MBI) and Ambac (NYSE: ABK) to AA from AAA on June 5.  This seemingly went over as a nonevent on Wall St. yesterday and one has to wonder - Moody’s (NYSE: MCO) what are you waiting for now?  The credibility of these ratings agencies is all be kaput.  This will affect around $1 trillion in bonds.