Bond Insurers Higher on Possible White House/Fed Action

Bond insurers are higher this morning on news the White House will get involved to help stop the potential wave of subprime defaults. The WSJ reported today, the Treasury department is working with large financial institutions to come up with a plan that will freeze resets on certain subprime loans. In addition, Fed Chairman Bernanke indicated in a speech last night that more rate cuts are on the table.

Stocks: Ambac Financial (NYSE: ABK) and MBIA (NYSE: MBI), Security Capital Assurance (NYSE: SCA), Assured Guaranty Ltd. (NYSE: AGO), Financial Security Assurance Holdings Ltd. (NYSE: FSE).

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