NY Insurance Regulator Discusses States’ Rejection of Muni Bond Insurance
New York's insurance industry regulator Eric Dinallo today responded to the beginning of some local governments finding they do not want/need insurance for their municipal bonds.
"Time and the market will determine the need for municipal bond insurance," Eric Dinallo said in the text of prepared testimony to a U.S. House of Representatives hearing on the shaken municipal bond insurance sector.
"Some governments have stated recently that they believe they no longer need bond insurance... That may mean that the demand for bond insurance shrinks," according to prepared testimony by Dinallo.
Dinallo said that his steps to stabilize the bond insurance industry should buy time for stability in other sectors of the market.
Published on March 12, 2008
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