A Warning on Insurers Frays Nerves


	A Warning on Insurers Frays Nerves

JICWyllie

2-1-2008 4:50 PM

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tags:

economy, financial markets, i-risks, i-increase

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/40fa1095-b8f7-4d59-b33b-13896118609d/CFC0D129-26CC-41CA-9414-F1CFFF3585F4/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.nytimes.com/2008/01/31/business/31bonded-web.html?_r=1&th&emc=th&oref=slogin" href="http://www.nytimes.com/2008/01/31/business/31bonded-web.html?_r=1&th&emc=th&oref=slogin" style="font-size: 11px;">www.nytimes.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.nytimes.com/2008/01/31/business/31bonded-web.html?_r=1&th&emc=th&oref=slogin"><P>S.& P. further rattled the market by issuing its warning about downgrades to mortgage securities. The move could, the rating firm acknowledged, force big losses at European and Asian banks as well as American regional banks, credit unions and the government-sponsored finance companies that have not yet written down the value of their subprime holdings to reflect market values. </P><P>The downgradings “could lead to the realization of those losses,” analysts at S.& P. said in a news release. The rating firm also said it would start to review its ratings for some banks, particularly those that “are thinly capitalized.”</P><P>For bigger banks, trouble at the bond insurers could unleash another wave of big losses. Meredith Whitney, an analyst at Oppenheimer & Company, estimates big banks may have to write down their investments by $40 billion to $70 billion if the guarantors lose their ratings. That would be on top of the more than $135 billion in write-downs they have already taken.</P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/CFC0D129-26CC-41CA-9414-F1CFFF3585F4/blog/" title="blog or email this clip"><img src="http://content9.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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