The firm is responding to criticism that ratings firms underrate municipal debt relative to corporate bonds.
CFIG, a privately held European insurer, was downgraded today to A+ from its former AAA rating by Standards and Poor's.
The Fed announced it would lend $200 billion of Treasury securities to bond dealers, causing a stock market spike.
Turmoil in the bond market was a factor in the formation of the Regional Bond Dealers Association, based in Alexandria, Va.
Ambac will seek to raise capital through a $1 billion common stock offering, plus a $500 million public offering of equity units.
The bond insurer has decided against splitting into two entities, as it prepares to receive up to $3 billion in cash.
"I would say, by any common-sense definition, we are in a recession," said Warren Buffett, CEO of Berkshire Hathaway.
The process could come to a favorable conclusion for the bond insurer early this week.
MBIA has pulled away from the Association of Financial Guaranty Insurers, saying it no longer shared the trade association’s views.
The New York State Insurance Department also reproached the plan, arguing that it would be “bad for the banks.”
Warren Buffett faced is facing criticism after Moody’s Investors Service — in which he is the largest stakeholder —told bond insurers to accept a bailout.
Academics pin the mortgage crisis on lenient lending criteria.
Leadership change reflects problems at the company due to subprime mortgages.
First-quarter results will suffer from subprime-related trading losses.
Despite economic concerns, the central bank keeps interest rates unchanged.
Raymond James has won a $1.75 million arbitration claim against Cantor Fitzgerald.
MSRB seeks comments on whether more information about municipals should be disclosed.
Warren Buffett has made an offer to three large municipal bond insurers to reinsure $800 billion in municipal bonds.
Regulators flooded Rep. Paul E. Kanjorski, D-Pa., with their and assessments of the ongoing municipal bond insurer debacle.
Shares of Ambac and MBIA rose after CNBC reported the names of eight banks that have banded together with the New York state Insurance Department to rescue the beleaguered bond insurance industry.
