 |
 |
|
This news release has been expired
|
|
CNBC- Municipal Bond Insurers Due for Downgrades Due to Exposure to Subprime Loans
Chicago, IL
Monday, February 11, 2008
Video Clip: Click to Watch
Janet Tavakoli appeared on a short segment on CNBC's Squawk Box with Becky Quick discussing the capital shortfall issues experienced by Ambac, MBIA, CIFG, FGIC and SCA due to their involvement with the subprime loan and CDO market (especially credit derivatives required to be marked to market). These insurers face credit rating downgrades from their current faux triple-A status and a crisis of confidence in their management.
Her position (incorrectly reflected by the other guest) is that the U.S. municipal bond financial guaranty business and other public finance financial guaranties are business opportunities for Berkshire Hathaway Assurance (solidly triple A), but the traditional insurers may have to undergo management change and restructuring / consolidation due to losses related to subprime loan and CDO guarantees.
Disclosure: Ms. Tavakoli owns shares of Berkshire Hathaway (BRKA)
Her position (incorrectly reflected by the other guest) is that the U.S. municipal bond financial guaranty business and other public finance financial guaranties are business opportunities for Berkshire Hathaway Assurance (solidly triple A), but the traditional insurers may have to undergo management change and restructuring / consolidation due to losses related to subprime loan and CDO guarantees.
Disclosure: Ms. Tavakoli owns shares of Berkshire Hathaway (BRKA)
Janet Tavakoli
President
Tavakoli Structured Finance, Inc.
Chicago, IL
312-540-0243