Executives, Regulators to Brainstorm in N.Y.C.

Bond insurance executives and insurance regulators plan to meet in New York this week to discuss ways they might help stabilize the industry, according to Wisconsin insurance commissioner Sean Dilweg.

With the industry battered by exposure to subprime loans, the discussions would focus on how the companies could take advantage of the Troubled Asset Relief Program set up by the Treasury Department, Dilweg told Dow Jones Newswires.

Ambac Financial Group Inc. chief executive officer Michael Callen last week said in an interview with Bloomberg LP that the industry would submit a response to the government's request for comments on the TARP plan. The bond insurers may ask the government to buy assets from their guaranteed investment contract portfolio or to let them assist in the government's guarantee program.

Both Callen and the Treasury Department denied reports that Treasury would take an equity stake in the bond insurers.

 

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