H. Russell Fraser, known in the municipal bond market as a founder of the financialguaranty business, has filed for personal bankruptcy.
Fraser, along with his wife Patricia P. Fraser, filed on Aug. 4th, according to courtdocuments.
The couple filed for protection from creditors under Chapter 11 of the bankruptcy codein the U.S. Bankruptcy Court District of Wyoming.
Reached yesterday at his Wyoming ranch, the Double Diamond X, Fraser said: "You can't bean entrepreneur and win all the time. Sometimes you win, sometimes you lose." He addedthat the bankruptcy was filed due to "a disagreement with the banks," but he declined tocomment further.
The couple listed total assets of $3.14 million and total liabilities of $4.10 million,according to the court documents. Some of the couple's properties will be sold and thecapital will be used to repay creditors, Fraser said. He said he may consider going backto work, possibly in the municipal bond industry, after the bankruptcy proceedings arefinished. That could take anywhere from six to 12 months, he said.
Fraser serves as a member of the board of directors of U.S. Energy Corp.
He is the founder and former chairman of ACA Financial Guaranty Corp. He established thefirm in 1997 and resigned as its chairman in early 2001, after announcing his intentionto pursue other interests.
Fraser has had a long history in the municipal bond industry. He joined AmericanMunicipal Bond Assurance Corp., the predecessor to Ambac Assurance Corp., in 1980 andhelped to turn its finances around.
In 1989, he and a friend purchased Fitch Investors Service, a struggling bond ratingagency, for $5 million, and made it a success. He left the agency, now known as FitchRatings, in 1997, and proceeded to build ACA from the ground up.
In a statement issued at Fraser's announced retirement in February 2001, former ACAchief executive officer Michael Satz noted, "Russ is one of the true founders of thefinancial guaranty industry and as such is owed a debt of gratitude by all who havebenefited from the industry, whether issuers, investors, or the employees of theinsurers and reinsurers that participate in the business."
