The credit rating agencies and regulators are to blame for the lack of competition in the bond insurance market — both have created an environment that makes it difficult for new capital to find its way into the business, an industry executive said Friday.

"It's hard to imagine that there would be capital providers that would come in under a scenario where there are no controls," said Dominic Frederico, president and chief executive officer of insurance holding company Assured Guaranty Ltd.. "There are no checks and balances, there are no clear regulations so that you would know the rules by which you'd have to play by."

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