Wall Street Journal (07/29/08) P. A14; Ng, Serena
Security Capital Assurance Ltd.'s recent accord with Merrill Lynch & Co. to cancel insurance contracts tied to $3.74 billion in mortgage securities could pave the way for similar settlements in the bond-insurance market. The agreement will help save the midsize bond insurer from insolvency, which would have put billions of dollars in guarantees it has written on municipal bonds at risk. New York insurance superintendent Eric Dinallo, who brokered the SGA-Merrill agreement, comments, "I think this is a template for others in distressed situations." The SGA-Merrill pact came after the Wall Street firm was awarded a favorable ruling from a New York federal court in June over a dispute with SCA, which attempted to walk away from certain insurance contracts earlier in the year.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment