Friday, January 25, 2008
bond insuers take center stage
--once little known insurance companies now are taking center stage because their weakness have domino effect, undercutting the value of the bonds they garantee. --cash infusions from outside investors won't be smooth --not all banks have the same amount at stake. Citi and ML has relative larger exposure to bond insurance wrapping. --all banks are tight in credit, they already stretched their balance sheet.