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Wednesday, February 13, 2008

Warren Buffett Going to Save Bond Insurance

Hi,
CNBC's Buffett Watch Posted Warren Buffett to CNBC: I Will Reinsure $800B in Municipal Bonds, Buffett's Big Muni Bond Offer: CNBC Interview Transcript (Part 1) and Buffett Sees Stocks In "General Range of Fair Value": CNBC Interview Transcript (Part 2).

At yesterday interview Buffett offered to reinsure $800 billion in municipal bonds now insured by Ambac, MBIA and FGIC. Mr. Buffett says one bond insurer turned him down, and he hasn't yet heard from the other two.

With turmoil in the mortgage and credit markets, the ratings of many bonds that these companies insure have been downgraded, putting the companies' AAA ratings at risk. Warren Buffett act will effectively giving them an AAA credit rating.

Mr. Buffett act had also affect the stock market sending DOW up 133.40, S&P nearly 10 points gain but NASDAQ finish slightly down.

For More information about CNBC's Warren Buffett Bond Insurance act:
Warren Buffett Calling CNBC's Squawk Box Tuesday on Bond Insurance Situation (February 11) Warren Buffett Says Berkshire Not Interested in Troubled Bond Insurers (February 6)
State Regulators Working with Berkshire Hathaway on Nationwide Bond Insurance License Application (January 28)
Berkshire Hathaway's Jain Tells CNBC He's Talking "Right Now" With Bond Insurers About Possible Purchase or Partnership (January 9)
Warren Buffett's Muni Bond Insurer "Tip-Toes" Into Market With $10M NYC Bond (January 9) Warren Buffett Promises to Stay on the Straight and Narrow with His New Bond Insurer (December 28)

More News about Warren Buffett Bond Insurance act:
Buffett's rally pushes Dow up 133
Buffett's bailout short on takers
Buffett Offers to Reinsure Bonds
Buffett's offer to back municipal bonds brings cheer
Buffett sees opportunity in muni bonds