Pj568

Ambac's Announcement is a Joke; Disagreeing with Whitman on Monolines

Another dilemma? If Directors believe the run off value is greater than current market prices, would they not be breeching their fiduciary duty to shareholders by approving plans to " issue new equity" with a significant dilutive effect for any reason other to avoid bankruptcy?

Why Don't Munis Form a Self-Insured Co-op?

ARS failures indicate the end of the free ride where long term debt was being sold at short term rates. Its not a credit adjustment, its a liquidity adjustment.

MBIA Is Still Whining About Ackman

Whether someone is short or long has no effect on profits, losses, solvency or the cost of financing of the company. The complexity of the situation has created valid doubts among investors about which analysis is closer to reality. If he's right, Mr. Brown will clarify the existing uncertainty by providing positive performance instead of rhetoric and the shorts will idisappear.

FGIC: Let Us Split in Two

A move of this sort seems to anwer the question about whose analysis is closer to being correct, Ackman's or those published by the bond insurers.

Negative Basis Trades: Far Worse for Banks than Monolines

Why the new term, isn't this just continuing to "mark to market" when the value of an investment is declining? One would think that this is not a new danger but one previosly considered in discussions of the effects of monolines losing their current ratings.

Is There A Bull Case for U.S. Financials?

Chris. My first thoughts were that yes the Moody's comment is self-serving and "BS" to your comments of advanced risk warnings being made. However I did go to the IRA website and browsed the article catalog where I found several dealing with everything that is currenly imploding, i.e. hedge fund leverage, credit risk, CDOs, subprime, regulatory issues, etc dating back several years. Good Stuff. Impressive.