Janet
Tavakoli appeared on a short segment on CNBC’s Squawk
Box with Becky Quick discussing the capital shortfall issues
experienced by Ambac, MBIA, CIFG, FGIC, and SCA due to
their involvement with the subprime loan and CDO market
(especially
credit derivatives required to be marked to market). These
insurers face credit rating downgrades from their current
faux triple-A status and a crisis of confidence in their
management.
Her position (incorrectly reflected by the other guest) is that the U.S. municipal
bond financial guaranty business and other public finance financial guaranties
are business opportunities for Berkshire Hathaway Assurance (solidly triple A),
but the traditional insurers may have to undergo management change and restructuring
/ consolidation due to losses related to subprime loan and CDO guarantees. Clients
of Tavakoli Structured Finance also have access
to proprietary TSF research, which is not published
in any other paid or public forum.