Our third post on a story that gets bigger with each telling. This one links to the Times of London:
America's biggest mortgage bond insurers collectively need a $200 billion (£101 billion) capital injection if they are to maintain their key AAA credit ratings, a figure that dwarfs a plan by New York regulators to put together a capital infusion of up to $15 billion, a leading ratings expert said yesterday.
The failure to maintain their AAA ratings will lead to a further round of multibillion-dollar writedowns among the Wall Street banks and other large owners of the bonds, Sean Egan, of Egan Jones Ratings Company, said.
It would also push some of them into receivership, Mr Egan added.
Egan Jones makes its money by selling its research to money managers, rather than through fees from the companies it rates....MORE