“ There have been two events over the last 5 days that signal the financial markets are nowhere near and end to their problems. These events indicate the depth and breadth of the problems we currently face. * bonddad’s diary :: :: * Bond Insurers Splitting Themselves Up Bond insurers are sometimes called “monoline” insurers because they only have one line of business. Some bond insurers use to only provide insurance for municipal bonds. However, some of those insurers branched out into subprime insurance over the last 7 years. The problem is these insurers aren’t financially ready for a collapse of the subprime market. As a result, their respective stock prices have tanked and they have come under increasing financial pressure. Now two companies have broached the idea of splitting themselves into two companies — one company that insures municipal debt and one that insures subprime debt.
Daily Kos: Financial Markets Are Getting Worse
