As reported recently in The Bond Buyer, on Dec. 17, 2008, a blue-ribbon commission submitted a report on municipal credit enhancement to the National League of Cities. The commission recommended that municipal issuers consider creating a mutual insurance company to insure new, fixed-rate municipal debt.

The commission's goal is laudable: to reduce financing costs for issuers by addressing the current lack of credit enhancement products. Having founded the municipal financial guarantee industry in 1971, Ambac shares this goal.

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