The ever-evolving situation for the municipal market's most vulnerable financial guarantors showed further developments in the last couple of days, as two companies announced additional losses while another removed one of the potential solutions.

Security Capital Assurance Ltd., the parent of struggling bond insurer XL Capital Assurance Inc., announced on Friday it will take an additional $1.5 billion charge for 2007, and will delay filing its annual report, pending a complete review of its fourth-quarter performance. The charge is likely to hinder the company's ability to write new business.

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