In a feature today on the monoline insurance companies being “the next financial crisis” ABC News breaks down the current crisis hitting the monoline insurance industry. Complete with a section on “What is Bond Insurance” the piece actually does a good job laying out the issues and actors in a clear way.
Accrued Interest shares with us his thinking on why Ambac (NYSE: ABK), in particular, will be looking toward breaking up the monoline insurer. His mention that the challenges to such a move “would be numerous”, is putting it lightly. Litigators and securities lawyers across the country are licking their chops at yet another calamity from the subprime crisis. Too bad we can’t invest in them…
Here is a great post from Do the right thing S&P and Moody’s that gives some straight talk about the monoline insurance business. It offers some refreshing opinions on what is going on here. I don’t agree with everything the blogger says, but he seems to be spot for most things. If you’re having trouble reading it, simply highlight the text, as it is somewhat dark in places.
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