New York Gov. David Paterson yesterday appealed to the U.S. Treasury to infuse $2 billion to $3 billion of capital into bond insurers to help lift their ratings and make insurance more available to municipal issuers.

In a letter to Treasury Secretary Timothy Geithner, Paterson said a combination of federal aid and private capital would help MBIA Inc. and other insurers further capitalize, which "could immediately result in one or more strong triple-A rated insurers, ensuring that municipal bond issuers would be able to come to market under the best possible terms."

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.