Buried in a blog commentary on BreakPointTrades.com is the following:
A committee of derivatives experts decided Thursday that Financial Guaranty Insurance Company's, or FGIC's, suspension of claims payments has triggered default-protection contracts written on the troubled insurer's debt.
The International Swaps and Derivatives Association said its Americas Credit Derivatives Determinations Committee had declared a "failure to pay" credit event on FGIC, which provides credit enhancement on public finance, structured and global infrastructure and utility securities.
The New York Insurance Department on Nov. 24 ordered FGIC to suspend paying claims. The demand followed an FGIC filing for the third quarter showing unacceptable deficits.
FGIC is working on a debt restructure targeting its guaranteed asset-backed securities deals.
Goldman Sachs has been taking a little of a hit of late. Down from above $193/shr to $164.30/shr today. The financials in general have been weak as a sector, and sector leading in decline, but the GS action has been piquing my interest - such an immense and strong competitor taking it on the chin? Combine that with the latest info from China, and their discontent with International Investment Banks and something about a $167B derivatives loss? Maybe we are starting to have a thread to pull on?
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