The firm will refinance the auction rate preferred securities issued by its municipal closed-end funds.
The Supreme Court has ruled that Kentucky can continue to tax out-of-state muni bonds, while not taxing in-state ones.
A Wells notice focuses on the firm's "bidding of various financial instruments associated with municipal securities."
One Goldman analyst says the bond insurers will need $3.4 billion each in added capital thanks to more quarterly losses.
Net new issuance of Treasury coupon securities is expected to hit $47 billion in the second quarter.
Last month, there were 791 new bond issues valued at $39 billion, according to Thompson Financial.
Municipal borrowers plan to pull at least $21 billion of bonds out of auction rate securities by May 1, Bloomberg reports.
The firm is responding to criticism that ratings firms underrate municipal debt relative to corporate bonds.
CFIG, a privately held European insurer, was downgraded today to A+ from its former AAA rating by Standards and Poor's.
The Fed announced it would lend $200 billion of Treasury securities to bond dealers, causing a stock market spike.
Turmoil in the bond market was a factor in the formation of the Regional Bond Dealers Association, based in Alexandria, Va.
Ambac will seek to raise capital through a $1 billion common stock offering, plus a $500 million public offering of equity units.
The bond insurer has decided against splitting into two entities, as it prepares to receive up to $3 billion in cash.
"I would say, by any common-sense definition, we are in a recession," said Warren Buffett, CEO of Berkshire Hathaway.
The process could come to a favorable conclusion for the bond insurer early this week.
MBIA has pulled away from the Association of Financial Guaranty Insurers, saying it no longer shared the trade association’s views.
The New York State Insurance Department also reproached the plan, arguing that it would be “bad for the banks.”
Warren Buffett faced is facing criticism after Moody’s Investors Service — in which he is the largest stakeholder —told bond insurers to accept a bailout.
Academics pin the mortgage crisis on lenient lending criteria.
Leadership change reflects problems at the company due to subprime mortgages.
