Backing Up the Bond (Video)

CNBC's Squawk Box – January 7, 2008

»VIDEO: Backing Up the Bond - CNBC - Financial Guarantors Due for Downgrades Due to Exposure to Subprime Loans and CDOs (subscription to CNBC required)

>>VIDEO: Backing Up the Bond - MSN - no subscription required

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.


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