Reorganization: A Sixth Alternative to Putting Bond Insurance At Risk.

    Reorganization is a sixth alternative to putting Bond Insurance at risk.  Current talk about reorganizing Bond Insurance Companies centers on splitting the very safe, but very endangered, Municipal Bond Insurance business into a separate corporation.  The resulting corporation would be a true Bond Insurance Company, shielded from the adverse results experienced by whatever business organization is established to deal with mortgage-related securities.  See Vikas Bajaj, "A Split-Up of Insurers of Bonds Considered" (New York Times Online, Saturday, February 16, 2008).

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