Ambac Financial Group Inc (AMBC)

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Briefing.com on ABK MBI news

Live In Play
29-Oct-08
13:20 ABK Follow Up: CNBC commentator says NY Insurance Superintendent Eric Dinallo is pushing for bond insurer involvement in TARP (2.63 +0.36) -Update-

As mentioned at 13:13, CNBC commentator says that Eric Dinallo is pushing to get bond insurers involved in TARP. Dinallo has been meeting with Treasury officials and some people on Capitol Hill in the recent days to promote a plan where the government will provide some sort of capital to the ailing bond surers, hopefully propping up their rating. Dinallo believes if you give capital to the insurers they will regain their AAA ratings and the now depressed insured bonds on the banks balance sheets will reflect the AAA rating and in turn the banks will have to sell fewer bonds to the TARP. Treasury Dept has no comment. Says they are considering this even though it is the Treasury's 3rd priority. (MBI, ABK)