The federal government could help jump-start the municipal market by letting bond insurers participate in the $700 billion Troubled Asset Relief Program, New York insurance superintendent Eric Dinallo said yesterday.

It would be "very logical to think about" the federal government dedicating between $10 billion and $20 billion as a "backstop" for the bond insurers, Dinallo said. He made the comments yesterday morning during an interview on CNBC, with New York Gov. David Paterson serving as guest host.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.