Friday, January 25, 2008
Rodneey, can you lend me a tenner?
Mortgage bond insurers 'need $200bn boost'
America's biggest mortgage bond insurers collectively need a $200 billion (£101 billion) capital injection if they are to maintain their key AAA credit ratings, a figure that dwarfs a plan by New York regulators to put together a capital infusion of up to $15 billion, a leading ratings expert said yesterday. The failure to maintain their AAA ratings will lead to a further round of multibillion-dollar writedowns among the Wall Street banks and other large owners of the bonds,
Posted by alan @ 04:21 PM (794 views)
4 thoughts on “Rodneey, can you lend me a tenner?”
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paul says:
Not a hope. Bye bye AAA rating.
inbreda says:
I think the word they are after is “junk”
Andyh says:
This is the KEY issue that will keep coming back to haunt the markets. It was the threat to the monolines from the first downgrade a week or so ago which triggered the really big falls in the markets. I think it is inevitable (and in fact it should have already happened) that further downgrades will come – then downward momentum will return.
yorkshireman says:
Do any of the insitutions or regulators have a clue about the real situation ? 15 billion on Wednesday, 200 billion on Friday. What next and who will pay ?