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U.S. Mortgage Bond Insurers Need $200 Billion, Times Reports
2008-01-24 21:52 (New York)
Jan. 25 (Bloomberg) -- The biggest mortgage-bond insurers in the U.S. need a collective $200 billion capital injection to keep their AAA credit ratings, dwarfing the $15 billion sought by the New York Insurance Department, the London-based Times said, citing a ratings expert.
Sean Egan of Egan-Jones Ratings Co. said the insurers' failure to keep their AAA ratings will lead to another round of multibillion-dollar writedowns by Wall Street banks and other large holders of the bonds, the Times said.
The insurance regulator held a meeting this week to try to persuade key Wall Street firms to support the bond insurers.