Reports Buffett's Berkshire Hathaway Starts Municipal Bond Insurer
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According to reports from the Wall Street Journal, Warren Buffett\'s Berkshire Hathaway (NYSE: BRK.a) is starting a bond insurer for city and state governments, aiming to take away business from embattled insurers MBIA (NYSE: MBI) and Ambac (NYSE: ABK) - which are wrapped up in the subprime debacle.
The paper said municipalities and bond investors will likely cheer the Buffett-backed venture as the triple-A ratings of the other bond insurers are in question. Bond insurers give the municipalities their premium rating, thereby lowering their borrowing costs.
Link To WSJ Article $
The paper said municipalities and bond investors will likely cheer the Buffett-backed venture as the triple-A ratings of the other bond insurers are in question. Bond insurers give the municipalities their premium rating, thereby lowering their borrowing costs.
Link To WSJ Article $
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