Hi,
Warren Buffett had offered to guarantee $800 billion of municipal bonds backed by MBIA Inc, Ambac Financial Group Inc and FGIC Corp, three large bond insurers back in earlier Feb.
According to Earth times Ambac Insiders Respond to Warren Buffett , Warren Buffett's bond insurance company would, for $5 billion in capital, capture a third of the municipal-insurance market. As for the insurers, the deal would steal the best part of their businesses, leaving them to deal with their heavy exposure to sub prime assets.
Ambac rejected the offer leaving everyone wondering what steps they would take to maintain their crucial AAA rating. After Ambac share price has fallen to a 52 week low and eight of the company insiders have purchased shares in their own company. Is Ambac at a bargain now?
My pervious posted about warren Buffett's Offer:
Warren Buffett Interview
Berkshire Hathaway Assurance Corporation Update
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