
With losses from subprime writedowns pouring in to Wall Street financial firms, more heads could roll. The next on the list are bond insurer companies. They often have investments in mortgages, and this could lead to other problems. So, in order to further "boost confidence" in the market, a bond insurer bailout is being considered.
The Street reports on the reasoning behind the attempts to raise capital for bond insurer infusions:
"No private investor in their right mind would touch this stuff, but someone has to step up and deal with it if we want to prevent a systemic event in the financial system," says T.J. Marta, fixed income strategist with RBC Capital Markets.





» Friday Fun Video: Tax Rebate Update: $300 - $1200 from LendingLeaves
While free money is always fun, we tried this a few years ago (Bush was still president) and it didn't help in the long term. [Read More]
Tracked on: January 25, 2008 8:06 AM | Permalink to Trackback