WASHINGTON–Troubled bond insurers have only four to five business days to raise enough capital to keep their crucial "triple-A" credit ratings, Gov. Spitzer told a congressional hearing today.
Testifying before the Capital Markets Subcommittee of the House Financial Services Committee, Mr. Spitzer said if the added funds don't materialize, the state will force the insurers to split their healthy component that insures municipal bonds from the segment that guarantees derivatives and risks linked to subprime mortgage investments.
"We will need to move in that direction," Gov. Spitzer said. "It is not our first choice but time is short. It's time for deals to get done."
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