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ACA Capital (ACA) Rises On Bailout Report

December 19, 2007 2:46 PM EST
Officials from Merrill Lynch (NYSE: MER), Bear Stearns (NYSE: BSC) and other major banks are in talks to bail out ACA Capital Holdings (NYSE: ACA), a struggling bond insurance company that has guaranteed $26 billion in mortgage securities, The New York Times reports. ACA Capital is up 17%.

ACA Capital Holdings is a holding company that provides financial guaranty insurance products to participants in the global credit derivatives markets, structured finance capital markets and municipal finance capital markets.

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