NEW YORK (Reuters) - Any meltdown of a large bond insurer would pose a systemic risk, Bank of America Corp (BAC) Chief Executive Ken Lewis said at a conference on Tuesday.
The bond insurers, which guarantee more then $2 trillion of securities and are expected to make big payouts on bonds linked to subprime mortgages, are struggling to raise capital and keep their top credit ratings.
"A big meltdown would pose systemic risk," Lewis said, adding that Bank of America is now giving less weight to insurance when figuring out the value of insured bonds.
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