Secondary Market/Investors
FGIC Wants Breakup of Mortgage, Muni Guaranty Business
By
PAUL JACKSON
February 15, 2008 10:17 AM CST
FGIC Corp. — the first monoline to lose its AAA status at all three major rating agencies — has asked to be split into two in order to protect the municipal bonds it insures, according to a Bloomberg report:
FGIC, owned by Blackstone Group LP and PMI Group Inc., applied for a new license so it can separate its municipal insurance unit from its guarantees on subprime-mortgages, David Neustadt, a department spokesman, said in a telephone interview.
New York Insurance Superintendent Eric Dinallo had suggested as much yesterday in testimony before the House Financial Services subcommittee on capital markets, saying he wanted to break up the monolines.
“We cannot allow the millions of individual Americans who invested in what was a low-risk investment [municipal bonds] lose money because of subprime excesses,â€? he said in his testimony. “Nor should subprime problems cause taxpayers to unnecessarily pay more to borrow for essential capital projects.â€?
recent stories by department
Origination/Lending
Secondary Market/Investors
Servicing/Default
Get your HW Fix
Join nearly 10,000 bold subscribers who already get our daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.
Events
2009 Dec 09 -- 2009 Dec 10
RMBS: Assessing Value and Risk
This two-day course in New York City will equip market participants with the knowledge and skills to evaluate prime, Alt-A and subprime RMBS portfolios in order to assess their value and understand inherent risks. For more information, visit www.fitchratings.com.
2010 Jan 13 -- 2010 Jan 14
2010 Collection Technology Summit
The Collection Technology Summit is the first industry event to focus solely on collections and its associated technologies and continues to draw top executives from the nation's most prominent institutions. The Collection Technology Summit, where innovation happens. For more information, visit www.collectiontechnology.net
Print This Article







