Risk and Return

From The Big Picture

Banks May Need $143 Billion for Insurer Downgrades: Banks that raised $72 billion to shore up capital depleted by subprime-related losses may require another $143 billion should credit rating firms downgrade bond insurers,according to analysts at Barclays Capital. Banks will need at least $22 billion if bonds covered by insurers led by MBIA Inc. and Ambac Assurance Corp. are cut one level from AAA, and six times more for downgrades by four steps to A, Paul Fenner-Leitao wrote in a published report. (Bloomberg)

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Technorati Tags AMBAC, Barclays, bond insurers, counterpaty risk. monoline insurers, MBIA, subprime

Tags: AMBAC, Barclays, bond insurers, counterpaty risk. monoline insurers, MBIA, subprime

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