Fulldeck

More on TARP and the Insurance Industry

Can Dinallo take on Buffett?

For starters, here's Ambac's proposal to Treasury, presumably to be presented by Dinallo.

www.ambac.com/pdfs/Amb...

And as an owner of ABK debt (AKF/AKT), I hate to admit it, but these are the facts.

. Obama is more than likely to win the Presidency

. Warren Buffett is Obama's economic advisor

. Warren Buffett is no fan of Ambac-
www.iht.com/articles/2...

In fact, he started his own competing muni bond insurer-

en.wikipedia.org/wiki/...

. According to Gasparino's reportage on CNBC, the "re-insurance" part of the TARP would likely be months away.

. "Months away" puts us into Obama's presidency, or at least gives him significant say over TARP decisions while awaiting inauguration.

. Warren will have Barack's ear. Warren's Berkshire Hathaway Assurance would be relegated to an also-ran if Ambac's and MBIA's ratings were restored.

I also noticed that in the Congressional hearings with the NRSROs- (S&P, Moody's, and Fitch), Paul Sarbanes had a negative tone re helping the "monolines" after hearing Egan's testimony.

I think Ambac's proposal is a sound one, but I also think Dinallo will be facing a strong headwind.

All opinions appreciated.