Warren Buffett yesterday offered to reinsure $800 billion in municipal bonds now insured by Ambac Assurance Corp., MBIA Insurance Corp., and Financial Guaranty Insurance Co., through his Berkshire Hathaway Assurance Corp.

Speaking live via telephone on CNBC, Buffett gave the insurers 30 days to find a better deal. He said he offered the deal to the insurers last week and that one insurer - whom he refused to name - had already rejected his offer. The other two have yet to respond, he said.

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